Trump threatens 100% tariff on countries putting 'Digital Services Tax on American Companies'

In a striking move, President Donald Trump has vowed to introduce a staggering '100% TARIFF' on goods from any nation that enacts a digital services tax aimed at American companies. This announcement came via a post on Truth Social, where Trump stated, 'This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not.' He emphasized that these tariffs would be enforced immediately if countries proceeded with their plans for digital taxes. The President has previously expressed his intention to retaliate against nations imposing such taxes, arguing that they disproportionately affect U.S. tech giants. In a notable instance last year, Trump threatened to halt trade negotiations with Canada over its proposed digital tax, which Ottawa ultimately abandoned just before its implementation date. Digital services taxes are often designed to target major tech firms, including prominent U.S. companies like Meta, Alphabet, and Amazon. As of now, over a dozen countries have enacted similar taxes, with Trump specifically mentioning 'Numerous European Countries' that are contemplating these measures. However, the legality of Trump's proposed tariffs remains in question. The Supreme Court recently ruled against his administration's attempt to impose 'reciprocal' tariffs on various countries, stating that the International Emergency Economic Powers Act did not grant him authority to impose such sweeping tariffs globally. Following that setback, Trump signed an executive order to implement a 10% global tariff under Section 122 of the Trade Act of 1974, but this measure is limited to 150 days unless Congress approves an extension.