Donald Trump threatened to impose 100% tariffs on European countries if they implement a digital services tax, following the EU’s formal endorsement of a US‑EU trade agreement negotiated the previous year. The threat escalates transatlantic trade tensions, jeopardises the recently approved trade accord, and could trigger retaliatory measures affecting technology, automotive and agricultural sectors. United States President Donald Trump, European Union member states and the European Commission, US digital services firms and EU exporters. The EU may delay or modify its digital services tax plans, negotiate to avoid tariffs, or prepare countermeasures; the US may follow through with tariff announcements if the tax proceeds. The warning comes shortly after EU member states formally endorsed a trade agreement negotiated with the United States last year. By conditioning market access on the abandonment of digital services taxes, the administration is using tariff leverage to press Europe into fiscal concessions. The move could disrupt sectors ranging from technology to agriculture and raises the prospect of renewed tit‑for‑t tariffs under WTO rules.
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