PNN – US President Donald Trump has warned that if European countries impose taxes on US companies providing digital services, they will face a 100% US tariffs on their goods.
According to the report of Pakistan News Network citing CBS News, Trump referred to European countries on the social network Truth Social that are considering implementing a “digital services tax,” a tax that targets companies that do business in a country but do not have a physical presence there and do not pay income taxes.
Trump wrote in a message on his social network: European countries are considering the imminent implementation of a digital services tax on American companies. Some of these countries are very close to implementing the plan. Consider this message as an official announcement that any country that implements such a tax will immediately face a 100% tariff on all goods it exports to the United States.
Trump also emphasized that the imposition of this new import tariff would take precedence over any existing trade agreement with the country in question, and that a 100% tariff would be applied without delay should a digital services tax be implemented.
According to a report by the Tax Foundation, a nonpartisan research organization, about half of the European member states of the Organization for Economic Cooperation and Development have proposed, announced or implemented a digital services tax. The organization says such a tax would mainly affect American companies.
Trump has set a July 4 deadline for finalizing a trade deal between the United States and the European Union, which caps tariffs on most EU exports to the United States at 15 percent. However, the digital services tax is not part of the deal and remains a major sticking point between the United States and the European Union.