Trump threatens 100% tariffs on countries taxing US digital services
President Trump says any country taxing US digital services will face an immediate 100% tariff on all its goods, overriding existing trade deals. The warning lands days before a July 4 deadline for an EU-US deal capping most European export tariffs at 15%. Per CBS News.
Any European exporter counting on stable access to the US market now faces fresh uncertainty, after President Trump threatened sweeping new tariffs over the way some governments tax American technology firms. He said any country that imposes a tax on US digital services would immediately face a 100% tariff on all goods it ships to the United States. Trump went further, stating that the new levy would take precedence over trade arrangements already in place, whether signed, agreed or still under negotiation. The warning arrives just days before a July 4 deadline for the European Union and the United States to finalize a deal that would cap tariffs on most EU exports at around 15%. Digital services taxes have been a long-running friction point. They are designed to capture revenue from companies that do significant business in a country without a physical presence there and without paying local income tax, a description that fits many large US tech platforms. Roughly half of Europe's OECD members have proposed, announced or already introduced such a tax. Source: CBS News.