President Donald Trump on Friday threatened to impose a 100% tariff on imports from countries that levy digital services taxes on U.S. companies, escalating his administration's push against foreign taxation of American tech giants.
In a post on social media, Trump took aim at European countries that he said are discussing "imminent” implementation of taxes on American companies. The U.S. president has repeatedly sought to use tariffs as way to deter such taxes, but many countries are looking for revenues as their economies increasingly operate in digital realms that are dominated by American companies.
"Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America,” Trump wrote.
He added that the new tax would supersede any previously negotiated trade deals. Trump said the penalty would apply to any country that moves forward with such a tax, but he singled out European nations in his post.
The move could lead to a larger showdown that could increase prices and hinder economic growth, possibly setting off a larger trade war if the 27-member European Union was compelled to retaliate.
