Trump threatens 100% tariff on European nations over tech tax

Here is a story making headlines in the economy: Trump threatens 100% tariff on European nations over tech taxImage source, Getty ImagesImage caption, US President Donald Trump speaks during an event in the Oval Office of the White House on June 22, 2026 in Washington, DC. ByFrancisco VelasquezBusiness reporterPublished16 minutes agoUS president Donald Trump has vowed to impose a 100% import tariff on any European country that introduces a digital services tax on American technology giants. Writing on Truth Social, Trump said "Numerous European countries" had been discussing bringing in such a levy and some were close to doing so.

He warned that the punitive penalties would be applied immediately and would completely "supersede" any existing bilateral trade agreements. While the post targets nations planning the "imminent implementation" of new levies, the precise implications for the UK were not immediately clear, given London has had such a tax in place for some time. "Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America," he wrote.

Economic Details

Britain's 2% Digital Services Tax (DST) on major search engines, social media platforms, and online marketplaces was introduced in April 2020. The tax applies to tech multinationals like Apple, Google, Meta, and Amazon, specifically targeting firms with global digital revenues exceeding £500 million and UK revenues over £25 million. It raised more than £800 million in 2024–25, up from £678 million in 2023–24, according to the Treasury.

The Department for Business and Trade and the Treasury have been contacted for comment. Friday's tariff warning is the latest in several announcements from President Trump's administration of new import taxes since the US Supreme Court struck down many of his previous duties in February. Earlier this month the US announced new tariffs of 10-12.

5% on dozens of countries accounting for almost all its imports over concerns they are not doing enough to tackle forced labour.

Economists are analysing what the news means for the markets.