US President Donald Trump has vowed to impose a 100% import tariff on any European country that introduces a digital services tax on American tech giants. Writing on his Truth Social platform, Trump said 'numerous European countries' had been discussing such a levy and warned that punitive penalties would be applied immediately, completely 'superseding' any existing bilateral trade agreements. The post targets nations planning 'imminent implementation' of new levies, but the precise implications for the UK were unclear, given London has had such a tax since 2020.

Britain's 2% Digital Services Tax (DST) applies to major search engines, social media platforms, and online marketplaces with global revenues exceeding £500 million and UK revenues surpassing £25 million. It impacts Apple, Google, Meta, and Amazon, raising more than £800 million in 2024 - 25, up from £678 million in 2023 - 24. Trump previously said the UK faced 'a big tariff' for targeting US companies, claiming 'they think they're going to make an easy buck'. The Department for Business and Trade and the Treasury have been contacted for comment.

Trump's threat comes days after the US and EU finalised a new trade deal. Michael Damianos, minister of energy, commerce and industry of Cyprus, noted that 'the EU can respond swiftly and proportionately when the deal is not respected'. France, Italy, and Spain impose a 3% digital services tax, and several other EU nations have implemented or proposed similar taxes. Amazon earlier upped its fees on sellers, citing such taxes. Trump has attempted large tariffs since becoming president again in 2025, though the Supreme Court struck down an earlier 10% global tariff. The US recently announced new tariffs of 10-12.5% on dozens of countries over forced labour concerns.