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Trump threatens 100% tariff on countries imposing digital services tax
CNBC • • nation
Key Points:
- President Donald Trump threatened to impose a "100% TARIFF" on goods from any country that enacts a digital services tax targeting U.S. companies, stating these tariffs would override existing trade deals.
- Trump warned that tariffs would be "immediately imposed" on countries proceeding with digital-tax plans, singling out "Numerous European Countries" considering such measures.
- Digital services taxes mainly affect large U.S. tech firms like Meta, Alphabet, and Amazon, and over a dozen countries have implemented these levies.
- It remains unclear under which legal authority Trump could enforce these immediate tariffs, especially after the Supreme Court struck down his previous "reciprocal" tariffs citing limits of the International Emergency Economic Powers Act.
- Trump has a history of opposing digital services taxes, previously threatening to halt trade talks with Canada over its proposed tax, which was ultimately abandoned.
