US President Donald Trump announced on June 26, 2026, that he will impose a 100% tariff on all goods from any country that enacts a digital services tax (DST) targeting American companies [1, 2, 3]. He declared the tariff will take immediate effect and "supersede trade deals made with the country, whether implemented, signed, or not" [1, 4].
The digital services taxes, applied by more than a dozen countries primarily in Europe, levy fees on revenue generated by large US tech firms such as Meta, Alphabet, and Amazon within those countries [2, 4, 5]. France has a 3% DST since 2019 applying to companies earning over €25 million in France and €750 million worldwide [1, 6, 7]. French President Emmanuel Macron said in late June before the G7 summit that France would not repeal its digital services tax despite US pressure [1, 6, 7].
Trump previously warned that a 100% tariff would hit French wine exports if France did not remove the tax [1, 6]. His latest announcement escalates this stance to all countries imposing digital services taxes. The tariffs threaten to intensify transatlantic trade tensions and could prompt retaliatory actions from the European Union [2, 5, 8].
European Commission spokesperson Olof Gill condemned the US decision, calling it "unilateral measures targeting such legitimate policies... unjustified" and pledged a "swift and decisive" EU response to defend regulatory autonomy. Gill emphasized that EU digital services taxes "apply equally to all large companies, regardless of their origin" [8].
The US Supreme Court recently limited Trump's unilateral tariff power by striking down his broad "reciprocal tariffs" policy. In response, Trump issued an executive order under the 1974 Trade Act for a 10% global tariff lasting up to 150 days that requires congressional approval for extension [9].
The Trump administration set a July 4 deadline for some EU countries to meet tariff reduction commitments, with some agreeing to reduce tariffs on US goods by that date [2]. The 100% tariff threat adds pressure amid ongoing negotiations over digital tax policies and trade barriers affecting US technology exporters.
The immediate next step will be whether any countries proceed with their DSTs. Trump said the 100% tariffs would be imposed immediately if they do [2, 10]. The EU and member states are expected to decide how to respond in the coming weeks.
