President Donald Trump issued a stark warning on Truth Social. Any nation imposing a tax on U.S. digital companies will face a 100% tariff on all goods shipped to America. The threat directly targets European countries that have implemented or proposed digital services taxes.
Just a day earlier, the EU had adopted legislation to comply with a U.S. trade deal that included tariff reductions.
Digital services taxes, or DSTs, are levies on revenue generated by large tech platforms. The UK, France, Italy, and Spain have implemented or proposed such taxes. They target major U.S. firms like Apple, Alphabet, Meta, and Amazon.
Trump argues these taxes attack U.S. business interests. His proposed 100% tariff would override any existing trade agreements.
France first enacted a 3% DST in 2019, prompting immediate U.S. tariff threats. Italy, Spain, and the UK followed with similar taxes ranging from 2% to 7.5%. The UK, outside the EU, is also included in Trump's blanket threat.
The announcement does not mention cryptocurrency. However, it raises speculation about Bitcoin as a potential safe haven amid trade uncertainty.
The companies directly affected are core components of the S&P 500 and Nasdaq. If disputes escalate to actual tariffs, their margins face pressure from higher digital taxes abroad and potential European retaliation.