The ink was barely dry. The EU had just signed a trade deal with Washington. A day later, Trump threatened to blow a hole in it.
On Friday, the president posted the threat on Truth Social. Any country that imposes a digital services tax on US firms, he wrote, would face “a 100% TARIFF on any and all Goods sent to the United States.” It would “supersede Trade Deals,” he added, “whether implemented, signed, or not.”
The timing was pointed. A day earlier, the EU had given final approval to the Turnberry trade deal. It caps most tariffs on European exports at 15%. Trump’s post threatens to override that the moment any member state moves on a digital tax.
What a digital services tax is
A digital services tax, or DST, is a levy on the local revenue of large tech firms. Most of those firms are American. France, Italy, Spain and the UK already run versions, aimed at the likes of Google, Apple, Amazon and Meta. Those firms book vast sales in Europe but little taxable profit there. Trump’s view is blunt. The taxes single out US companies, he says, and he will punish any country that keeps them.
