Many European countries have discussed the upcoming implementation of digital service tax on US companies. Some of these countries are getting closer to implementing this. Please understand that this statement is aimed at clarifying that any country that imposes such a tax will immediately be subject to a 100% tax on all goods shipped to the US" - President Donald Trump shared on the social network Truth Social.
The US President added that this tariff will replace trade agreements between the US and that country, whether they have been implemented, signed or not signed. In addition, a 100% tariff will be applied immediately by the US if European countries collect digital tariffs on US businesses.
This move could lead to a larger confrontation, increase prices and hinder economic growth, and could even trigger a larger trade war if the 27-member European Union is forced to retaliate.
Unlateral measures aimed at such legitimate policies are unjustifiable. If implemented, the EU will react quickly and decisively to protect its rights and autonomy in regulations," said Olof Gill, spokesman for the European Commission, on June 26.
He defends taxing technology companies as "non-discriminatory" and applying it equally to "all large companies, regardless of their origin".
Mr. Trump has repeatedly protested against foreign efforts to tax or adjust US technology giants. Last year, he threatened to impose new tariffs on any country that took such action.
US President Donald Trump's latest statement was made before the July 4 deadline he set for the European Union and the US to begin implementing the tariff agreement, which stipulates a maximum tax rate for most EU exports of 15%.
In May this year, the EU completed a trade agreement with the US, which stipulates a maximum tax rate for EU exports of 15%. This agreement was reached after months of debate within the EU, after European Commission President Ursula von der Leyen reached a preliminary agreement last year during President Trump's visit to the golf course in Scotland. Digital tax is not within the scope of the agreement and is still a point of disagreement between the US and the European bloc.
