Trump threatens 100% tariffs on EU over tech taxes, upending fresh trade deal

President Trump threatened on Friday to scrap a trade deal the European Union had finalized just days earlier, claiming he would impose 100 percent tariffs on European countries unless they abandon their digital services taxes, according to the New York Times. The threat comes as Europe faces mounting economic pressure from multiple directions: the tariff threat itself, broader US trade tensions, and the continent's own sluggish growth. The timing underscores the fragility of any agreement in the current US administration's approach to transatlantic relations.

The digital services taxes that triggered Trump's threat target large technology companies—many of them American—that generate substantial revenue in Europe while minimizing their tax footprint. France, Spain, Italy and other EU states have pursued such levies as a way to capture tax revenue from digital platforms. The EU had sought to resolve the dispute through negotiation, but Trump's sudden reversal signals his willingness to use tariff threats to overturn multilateral agreements his administration views as unfavorable.