US President Donald Trump on Friday threatened to impose 100% tariffs on European countries that levy a digital services tax, adding that existing trade agreements with those countries would also be cancelled.
Trump wrote in a post on Truth Social: "Any country that imposes such a tax will immediately face 100% tariffs on all goods it exports to the United States of America," adding that "these tariffs will replace the trade agreements concluded with that country, whether those agreements have entered into force, been signed, or not yet signed."
The move comes one day after European Union countries gave the green light to a trade agreement with the United States negotiated last year, which caps tariffs on European imports at 15%.