economy
Trump threatens 100% tariff on European countries that impose digital tax
US president says levy would be imposed immediately and supersede pre-existing trade deals with the country
TL;DR
- Donald Trump threatened a 100% import tariff on European countries imposing digital services taxes on US companies.
- The tariff would be imposed immediately and supersede existing trade deals.
- This threat could escalate into a trade war between the US and the EU.
- France, Spain, Italy, and the UK currently have digital services taxes impacting US tech firms.
- The EU stated it would respond swiftly and decisively to defend its rights and regulatory autonomy against such tariffs.
- Digital services taxes were not included in the recent EU-US trade deal and remain an obstacle.