Trump warns of 100% tariff on nations imposing digital tax on US companies

US President Donald Trump on Friday warned countries imposing a digital services tax (DST) on American companies that they could face a 100 per cent tariff on their exports to the United States, saying such measures could also override existing or future trade agreements.

In a post on Truth Social, Trump targeted European countries that he claimed were considering the “imminent” introduction of taxes on American technology companies.

“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,” Trump said, adding that the tariff would “supersede Trade Deals” whether they were already implemented, signed, or still under negotiation.

The threat is unlikely to have a major impact on India, as New Delhi has already withdrawn some digital service tax measures during 2024 and 2025. The White House has said India is expected to completely remove DST provisions as part of the ongoing trade negotiations between the two countries.

Trump has repeatedly opposed foreign digital taxes and regulations targeting American technology giants. Last year, he warned that such policies were unfairly aimed at US companies, saying digital taxes and regulations were designed to “harm, or discriminate against, American Technology.”