US President Donald Trump has escalated the transatlantic trade dispute by threatening to impose a 100% tariff on goods from European countries that continue to levy digital services taxes on American companies.
The president also warned that existing trade agreements could be scrapped if the EU does not reverse its position.
The threat, issued via a post on Truth Social, targets nations maintaining these levies, which the US administration views as discriminatory against its technology sector.
The move adds significant uncertainty to the broader US-EU trade relationship, with markets likely to assess the potential impact on cross-border commerce and supply chains.
This development follows a day of heightened rhetoric, with EU countries recently reaffirming their stance on digital taxation.
The prospect of such steep tariffs would represent a dramatic escalation in trade policy, potentially affecting a wide range of European exports to the US market.