US President Donald Trump on Friday warned that the United States would impose a 100% tariff on goods imported from any country that levies a digital services tax on American companies. He also declared that the tariffs would override any existing or future trade agreements with those countries. Trump made the announcement on his Truth Social platform, reinforcing his administration's long-standing opposition to digital taxes targeting major US technology firms.

Trump Issues Fresh Tariff Warning

Trump said the United States would respond immediately to countries that continue to impose digital services taxes. "Any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America."

He further warned that the new tariffs would take precedence over trade agreements. "this TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not." The Trump administration has repeatedly argued that digital services taxes unfairly target leading American technology companies, including Alphabet Inc. and Meta Platforms Inc.

India Is Unlikely to Face the Tariffs

However, India is unlikely to be affected because it has already withdrawn its Equalisation Levy, widely known as the "Google Tax." India introduced the levy in 2016 to tax payments made to foreign digital companies for online advertising services. The 6% tax applied to overseas technology firms that earned advertising revenue from Indian businesses, even if they had no physical presence in the country.

Later, India removed the 2% Equalisation Levy on non-resident e-commerce operators through the Finance Act, 2024. Furthermore, the government abolished the 6% levy on digital advertising services through the Finance Bill, 2025, effective April 1, 2025. At that time, government officials said the decision would help reduce trade tensions with the United States.

European Nations Could Face the Biggest Impact

Meanwhile, several European countries are likely to be the main targets of Trump's proposed tariffs because they continue to impose digital services taxes. Notably, Trump's announcement came just one day after European Union member states approved a trade agreement with the United States that capped tariffs on European imports at 15%. However, negotiators left digital services taxes out of the agreement, allowing the dispute to continue. Trump has consistently argued that these taxes discriminate against American companies because many of the world's largest technology firms are based in the United States.

France Remains at the Centre of the Dispute

Earlier this month, Trump warned that he would impose a 100% tariff on French wine and champagne unless France withdrew its digital services tax. France introduced a 3% digital services tax in 2019 on revenue earned within the country by large technology companies, including Facebook, Amazon, Apple and Alphabet, Google's parent company. As a result, the tax has remained one of the biggest trade disagreements between Washington and Paris.

European Union Vows to Respond

In response, the European Union said it would defend its interests. According to AFP, a spokesperson for the European Commission said the bloc would "respond swiftly and decisively to defend its rights and regulatory autonomy."

Meanwhile, the Office of the US Trade Representative has repeatedly warned France, Britain, Austria, Spain and several other European countries that they could face retaliatory tariffs if they continue imposing digital services taxes on American technology companies.