Trump Threatens 100% Tariffs On Countries That Tax US Digital Companies

US President Donald Trump has warned countries against taxing American technology companies, threatening to slap 100% tariffs on any nation that goes ahead with a digital services tax. In a Truth Social post on Friday, Trump said several European countries are discussing plans to impose a digital services tax on American companies, with some nations close to finalizing it. He made clear what would follow: any country that taxes US companies in this way will immediately face a 100% tariff on its goods entering the United States, and that this tariff would apply even if the country already has an existing trade agreement with the US.

India’s Own History With Digital Taxes
India previously had a 2% equalisation levy targeting digital transactions, which the central government withdrew in August 2024 to stay aligned with international trade agreements. India had also scrapped a 6% tax on digital advertising in April last year.