Signed an agreement, but still no use? Trump: If Europe dares to impose a digital tax, we will impose a 100% tariff.

Trump issues a strong warning to European countries: anyone who dares to levy a digital service tax on American companies will immediately face a 100% tariff on imports. According to the latest report from Xinhua News Agency, US President Trump threatened on social media on the 26th to impose a 100% retaliatory tariff on European countries that levy a digital service tax on American companies. Trump said that if the relevant digital service tax is implemented, the retaliatory tariff will be implemented immediately, but he did not mention the legal basis for this action. Trump stated that the tariff will override any trade agreement between the United States and the relevant countries, "whether already in effect, signed, or not yet signed." In other words, even if both sides have reached a trade agreement, as long as the other party imposes a digital tax, the agreement will be null and void. He wrote in his post, "Please consider this statement as an official notice - any country that imposes such a tax will immediately face a 100% tariff on all goods imported to the US." He also said that "multiple" European countries are discussing a digital service tax that is "about to be implemented" targeting American companies, and some countries are already "close" to implementing it. EU: We will not back down The EU's response is equally strong. A spokesperson for the European Commission said, "Unilateral measures against legitimate policies have no basis. If the US persists, the EU will quickly and decisively defend its rights and regulatory sovereignty." The European Parliament has recently supported the implementation of a unified EU-level digital service tax, but the plan requires the unanimous consent of all 27 member states, according to the Financial Times, making this possibility very low. Legal tools: Transition from emergency powers to Section 301 Behind this threat is a key legal background. Earlier this year, the US Supreme Court ruled that Trump's use of emergency economic powers to impose certain tariffs was unconstitutional, forcing the White House to find other legal avenues. This time, White House officials said they would invoke Section 301 of the 1974 Trade Act, which authorizes the president to take retaliatory measures after investigating and determining that certain taxes are discriminatory and trade-restrictive. President Trump used this provision to impose large-scale tariffs on Chinese goods during his first term. Disputes over digital taxes have a long history The controversy over digital service taxes is not new. In recent years, countries such as the UK and France have introduced digital taxes targeting large tech companies, citing the fact that these companies earn significant revenue in their countries but pay very little tax. The US has always believed that such taxes target American companies specifically and are discriminatory. The UK's digital services tax rate is 2%, levied on the revenue of large tech companies. Trump threatened in April of this year to impose "high tariffs" on the UK if it did not repeal the tax. Canada's previous approach provides a reference: in June of last year, Canadian Prime Minister Mark Carney announced the repeal of a digital service tax targeting companies like Amazon, Meta, and Netflix in exchange for smoother trade relations with Washington. Mathias Cormann, Secretary-General of the OECD, called for coordinated positions among countries to avoid unilateral actions. He stated in an interview with the Financial Times earlier this month that fragmented tax measures "are not beneficial for businesses, trade, investment, or growth." Translated from "Wall Street View" by Long Yue, GMTEight Editor: Zhang Jinliang.