U.S. President Donald Trump has threatened to impose a 100% tariff on imports from any country that introduces a Digital Services Tax targeting American companies.
In a post on his Truth Social platform, Trump said several European countries were discussing the imminent implementation of a Digital Services Tax on U.S. companies, with some close to introducing the measure.
He warned that any country imposing such a tax would “immediately be met with a 100% tariff” on all goods exported to the United States.
Trump further said the tariff would supersede any existing or future trade agreements with the country concerned and would take effect immediately if the tax was implemented.
The warning comes as the United States continues to oppose Digital Services Taxes adopted or proposed by several countries, arguing that they disproportionately target major American technology companies.
Meanwhile, Sri Lanka is set to introduce an 18% Value Added Tax (VAT) on digital services supplied by non-resident companies from July 1. However, unlike the Digital Services Taxes referred to by Trump, Sri Lanka’s measure is a VAT on foreign digital services consumed locally rather than a separate tax specifically targeting the revenues of large U.S. technology companies. (Newswire)