Donald Trump has threatened to impose 100% tariffs on all imported goods from countries that dare to tax American IT companies. The new escalation in trade tensions puts all European exports to the US at risk.
On his social network Truth Social, Trump warned EU countries, mulling over digital services taxes, that Washington’s response would be the immediate imposition of a 100% tariff on all goods shipped to the US. He stressed that these duties would automatically void any existing trade agreements with the US, regardless of their implementation stage.
The sharp statement came after French President Emmanuel Macron publicly refused to cancel the digital levy under US pressure. Macron reaffirmed his position just hours before a personal meeting with Trump at the G7 summit. In the meantime, Paris has been charging a 3% tax on tech giants since 2019, provided that their global revenue exceeds €750 million and their revenue in France tops €25 million.
Donald Trump sent a clear message even before flying to the summit: if Paris does not abandon levies on American high-tech companies, the first victim of the 100% tariffs would be French wine.