President Donald Trump has threatened to impose a 100% tariff on goods from any country that maintains a digital services tax on American companies, significantly escalating the ongoing transatlantic trade dispute.
The warning, issued via a post on Truth Social, targets nations that continue to levy these taxes, with Europe being the primary focus of the threat.
This development marks a sharp intensification of trade tensions, moving beyond previous steel and aluminum tariffs to encompass a broader range of imports based on tax policy compliance.
Markets reacted swiftly to the news, with European equities facing downward pressure as investors recalibrated risk exposures.
The Euro weakened against the dollar amid concerns that such a severe tariff regime could disrupt trade flows and dampen economic growth in the region.
While the immediate impact was contained to sentiment-driven moves, the potential for a prolonged trade war introduces significant uncertainty for multinational corporations with substantial exposure to both US and European markets.