US President Donald Trump threatened to impose a 100% tariff on all goods imported from any country that enacts a digital services tax on US companies. He said the tariff would take immediate effect and override any existing or pending trade agreements with those countries [1, 2, 3, 4].
Trump singled out European nations, warning that many have discussed or are close to implementing such taxes on major US tech firms like Meta, Alphabet, Apple, and Amazon. "Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies," he said. "Any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America." [1, 3]
France has imposed a 3% digital services tax since 2019 on revenues from digital activities of companies with over €25 million in France and €750 million worldwide. French President Emmanuel Macron said before the G7 summit that France will not cancel its digital services tax despite US pressure. "France will not bow to pressure from Trump and scrap its digital tax on U.S. tech giants," Macron stated [2, 3, 5]. Trump separately threatened 100% tariffs on French wine if France did not rescind the tax [2, 3].
The US argues these taxes unfairly discriminate against American companies. The EU Commission rejects that and defends the taxes as applying to all large digital firms equally, regardless of origin. EU spokesperson Olof Gill said, "Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy." [4, 6]
The US and EU have a trade deal capping US tariffs on European goods at 15%. Trump said that the new 100% tariffs would override that limit [3, 4]. The European Council ratified this trade agreement on June 25, 2026 [4].
Trump posted the tariff threat on social media on June 26 and it was widely reported the next day. Macron reaffirmed France’s position on June 27 [1, 2, 3, 4]. Trump set a deadline of July 4, 2026, for European countries to meet tariff reduction commitments or face tariffs [3].
