Donald Trump announced that any country implementing a digital services tax would face US tariffs as high as 100%, speaking shortly after the EU‑US deal limited such taxes to 15%. The threat reignites trade tensions between the United States and its European partners, putting at risk the $1.3 trillion digital services market and inviting possible retaliation or WTO disputes. Donald Trump and the US administration, the European Union, governments considering digital services taxes, and major US technology firms operating in Europe. The EU may consult the WTO and consider counter‑measures, while negotiations could resume to avoid a full‑blown tariff war. The warning follows a recent EU‑US trade accord that caps digital services taxes at 15%, suggesting the US views any higher levy as a direct affront to its tech firms. By threatening retaliatory duties of up to 100%, the administration aims to deter Europe and other jurisdictions from enacting or expanding such taxes. The move raises the prospect of a tit‑for‑tart tariff cycle that could disrupt cross‑border digital services and provoke WTO scrutiny.
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