&imwidth=800&imheight=600&format=webp&quality=medium "Trump's tariff threats return, this time targeting Europe over Big Tech taxes")
Days after securing a ceasefire agreement with Iran, US President Donald Trump returned to his familiar tariff strategy on Friday by threatening to impose a 100 per cent tariff on European countries that levy digital services taxes on American technology companies.
He also warned that any existing trade agreements with those countries would be scrapped, a move that could jeopardise the trade deal recently concluded between Washington and Brussels after months of negotiations.
"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 in a post on his Truth Social platform, adding that "this TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not."
The warning came only a day after European Union member states approved a trade agreement negotiated with the United States last year. The deal limits tariffs on European imports to 15 per cent.
European Digital Services Taxes (DSTs) target the local revenues of large technology companies rather than their corporate profits. Several European countries have already introduced such taxes, while others are considering similar measures.
Trump has repeatedly argued that non-tariff barriers are a major obstacle to trade. He has particularly criticised European regulations governing the technology and environmental sectors, claiming those rules restrict American exports.
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Earlier this month, Trump threatened to impose a 100 per cent tariff on French wine and champagne unless Paris withdrew its digital services tax on technology companies.
France introduced a three per cent tax in 2019 on the revenues earned within the country by major technology firms, including Facebook, Amazon, Apple and Google's parent company Alphabet.
European Union vows swift response
The European Union responded on Friday by warning that it would act quickly if Trump followed through on his latest tariff threat.
"If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy," a European Commission spokesman said.
