President Trump says he would impose a 100% tariff on the goods of any European nation that decides to impose a digital service tax on U.S. tech companies.
Mr. Trump, writing on social media, said some nations “are close to actually doing this,” and he would reciprocate with levies immediately.
“This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not,” he said.
Tariffs are duties imposed on foreign goods when they’re brought into U.S. markets.
The Supreme Court earlier this year struck down Mr. Trump’s ability to unilaterally slap tariffs on individual nations under the International Emergency Economic Powers Act, so it’ss unclear which statute or authority the president would use if European countries impose the tax.
Following the court’s ruling, Mr. Trump imposed a 10% blanket global tariff on foreign goods under Section 122 of the Trade Act of 1974. Those levies will expire after 150 days unless Congress extends them.
He’s also conducting investigations into unfair trade practices to impose levies under other authorities.
Digital service taxes are levied on the gross revenues of U.S. tech companies operating in a certain country. Affected companies could include Meta, Alphabet and Amazon.
Mr. Trump frequently rails against countries that impose the tax or flirt with the idea, saying they unfairly punish thriving American companies.
Last year, Mr. Trump convinced Canada to rescind its digital service tax while Ottawa and Washington discussed a trade deal.
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