President Donald Trump has threatened to impose a 100% tariff on goods from any country that maintains a digital services tax on American companies.
In a post on Truth Social on Friday, Trump stated that such a tariff would supersede any existing trade deals, whether implemented, signed, or pending.
The threat marks a significant escalation in the ongoing trade dispute over digital taxation.
By explicitly stating that the tariff would override prior agreements, the administration is signaling a willingness to dismantle established trade frameworks to protect US tech firms from foreign levies.
This approach introduces substantial uncertainty for multinational corporations that rely on stable trade terms across borders.
Markets are likely to react to the heightened risk of trade fragmentation.