Donald Trump has issued a warning of imposing a 100% tariff on all products coming from any nation that imposes a digital services tax on US companies. The US President expressed his concerns about several European countries considering implementing such a tax on American companies. In a recent post on Truth Social, Trump stated that any country enforcing this tax would face immediate 100% tariffs on all goods sent to the United States.

Furthermore, Trump emphasized that this new tax rule would take precedence over any trade agreements with the US, regardless of their status. This declaration follows French President Emmanuel Macron’s refusal to eliminate France’s digital tax on US tech companies in response to pressure from Trump. Trump had previously warned of imposing 100% tariffs on French wine if Paris did not remove its digital tax.

Since 2019, France has imposed a 3% tax on revenue generated from digital services by companies earning over €25 million in France and €750 million globally. Trump has consistently opposed foreign attempts to tax or regulate American tech giants. Last year, he threatened to levy new tariffs on any country attempting such actions, arguing that digital taxes and regulations are crafted to harm or discriminate against American technology.

This tariff threat from Trump comes as the deadline approaches for the European Union and the US to approve a tariff deal before July 4, limiting tariffs on most EU exports to 15%. Despite finalizing a trade deal in May that caps tariffs on EU exports, digital taxes have remained an unresolved issue between the US and the EU.