Former US President Donald Trump threatened to impose 100% tariffs on European Union goods if the bloc proceeds with its digital services tax targeting large technology firms. The threat raises the prospect of a new transatlantic trade conflict that could disrupt markets, affect Big Tech revenues, and challenge EU fiscal sovereignty. Donald Trump (former US President), European Commission, EU member states, Big Tech companies. The EU is expected to defend its tax sovereignty, possibly triggering WTO consultations or negotiated settlement, while markets watch for any follow‑up tariff announcements. Trump’s statement revives a long‑standing dispute over how countries may tax digital multinational firms. The European Commission replied that member states retain fiscal sovereignty and would respond decisively to any unilateral measures. Analysts note that such a tariff escalation would likely hit EU‑based tech operations and could provoke retaliatory steps from Brussels. The situation adds another layer of uncertainty to already fragile transatlantic trade relations.
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