On Friday, President Donald Trump warned that any country moving forward with digital services taxes targeting major U.S. technology companies would face immediate 100% tariffs.
In a post on Truth Social, Trump said the U.S. would impose a "100% TARIFF" on goods imported from any country that enacts a digital services tax affecting American companies.
"This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not," Trump wrote, adding that the tariffs "will be immediately imposed" if countries proceed with such tax policies.
Trump specifically pointed to "Numerous European Countries" that he said are considering digital services taxes, arguing the measures unfairly single out American technology giants such as Meta Platforms, Inc. (META), Alphabet Inc. (GOOGL), and Amazon.com, Inc. (AMZN).
Digital services taxes are typically designed to tax revenue generated by the world's largest digital companies from activities such as online advertising, digital marketplaces and social media platforms. More than a dozen countries have already implemented similar taxes.
Canada Previously Backed Away From Digital Tax Plan
Trump has repeatedly opposed digital services taxes, arguing they discriminate against U.S. businesses. Last year, he threatened to halt trade negotiations with Canada over its proposed digital services tax. Ottawa ultimately withdrew the measure shortly before it was scheduled to take effect.
Questions Remain Over Trump's Legal Authority
Despite Trump's latest warning, legal questions remain over whether he can unilaterally impose such sweeping tariffs. In February, the U.S. Supreme Court struck down Trump's reciprocal tariff framework, ruling that the International Emergency Economic Powers Act did not grant the administration authority to impose individualized tariffs on nearly every country.
Hours after that ruling, Trump signed an executive order establishing a new 10% global tariff under Section 122 of the Trade Act of 1974. However, tariffs imposed under that provision are limited to 150 days unless Congress approves an extension.
This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.
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