Donald Trump has once again made a tariff “threat” to several countries. In a recent Truth Social post, the US President has announced that the country will impose a “100% TARIFF” on goods imported from any country that introduces a digital services tax targeting American technology companies such as Meta, Alphabet (Google) and Amazon. The warning comes as several European countries continue discussions on implementing digital services taxes, while Canada recently withdrew a similar proposal.In his Truth Social post, Trump wrote: “Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies. Some of these Countries are close to actually doing this. Please let this statement serve to represent that 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. This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not. Additionally, the 100% TARIFF will be immediately imposed, if they proceed. Thank you for your attention to this matter. President DONALD J. TRUMP.”The proposed measure would apply to countries that proceed with digital services taxes, which are generally designed to tax revenue earned by large multinational technology firms operating in their markets.
Countries that could be affected by Donald Trump’s threatened tariffs
Trump’s statement specifically referred to “Numerous European Countries” considering digital services taxes. More than a dozen countries have already introduced such levies, with many of them structured to apply only to the world’s largest digital companies, including Meta, Alphabet and Amazon.Canada was previously among the countries planning to introduce a digital services tax. Trump had earlier warned that the US would halt trade negotiations with Canada over the proposal. Ottawa later withdrew the tax shortly before it was scheduled to take effect.While Trump said the tariffs would be imposed immediately if countries move ahead with their digital tax plans, it remains unclear under which legal authority such tariffs could be implemented.The US Supreme Court previously struck down Trump’s global reciprocal tariffs, ruling that the International Emergency Economic Powers Act did not authorise the administration to impose broad, country-specific tariffs.Following that ruling, Trump signed an executive order introducing 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.The latest proposal would therefore face questions over the legal mechanism required to enforce country-specific 100% tariffs tied to digital services taxes.
