Warning: 100% tax rate will be applied.
On the social media platform Truth Social, President Donald Trump asserted that Washington would impose import tariffs of up to 100% on all goods from any country that taxes digital services provided by American technology companies.
This measure will supersede any trade agreements already signed or underway with the countries involved, regardless of whether those agreements have been implemented. Previously, President Donald Trump stated that several European countries were preparing to implement digital services taxes targeting American technology companies.
President Donald Trump's latest move has heightened transatlantic tensions, coming as the US and EU have just reached a trade agreement stipulating a 15% tariff ceiling on most EU exports to the US. However, the issue of digital services tariffs was not included in this agreement and continues to be one of the major points of contention between the two sides.
For many years, the US government has opposed digital services taxes imposed by some European countries, arguing that they discriminate against American technology companies such as Google, Apple , Meta, and Amazon. It remains unclear under what legal mechanism the US government will implement this new warning, or what its specific scope will be.
Risk of mutual loss.
According to Politico (US), the EU has reacted strongly to President Donald Trump's threat of tariffs. The European Commission affirmed that the EU and its member states have full sovereignty in managing and regulating economic activities within their territories. The European side emphasized that these tariffs are not discriminatory and apply fairly to all large companies based on revenue, regardless of country of origin.
The European governing body also warned that unilateral measures targeting the EU's legitimate policies are completely unreasonable. If the US carries out its threat of imposing tariffs, the EU will react swiftly and decisively to protect its interests and its autonomy.
EU officials still prioritize a multilateral global solution based on joint discussions within the framework of the G7 (the group of 7 countries with the world's largest economies, industries, and development) and the Organization for Economic Cooperation and Development (OECD), rather than accepting concessions to unilateral pressure from Washington.
According to the US news site EconoFact, if a trade war breaks out, the economic consequences will be detrimental to both sides. On the US side, large technology corporations not only risk losing billions of dollars in digital services taxes each year, but also face tightened regulatory oversight from the EU.
European technology companies and startups, while not directly affected, will indirectly suffer losses from cost transfer. To offset the tax burden imposed by Europe, American technology corporations will increase advertising service fees and raise commissions on online app stores. This forces European digital businesses and small and medium-sized enterprises (SMEs) to bear higher operating costs, leading to a decline in the competitiveness of the entire European digital industry.
Source: https://www.sggp.org.vn/my-eu-cang-thang-do-thue-dich-vu-so-post859522.html
