US President Donald Trump threatened to impose immediate 100% tariffs on any country that taxes American technology firms, a move that would override existing trade agreements and revive global trade tensions.
The warning targets Digital Services Taxes, the levies that several European governments apply to large US tech companies. By pressuring those governments, the threat could ultimately benefit the same firms.
A Renewed Fight Over Digital Taxes
Digital Services Taxes, or DSTs, tax the revenue technology firms earn from local users, not their profits.
France pioneered the model in 2019 with a 3% levy. It raised about €700 million ($797 million) in 2024, almost entirely from large American technology firms. The United Kingdom, Italy, Spain, and Austria run similar measures.
The tactic has a track record. During Trump’s first term, the US Trade Representative ruled France’s tax discriminatory. It readied 25% duties on about $1.3 billion of French goods before suspending them for global talks.
Those OECD negotiations later stalled, reviving the dispute. Canada scrapped its own 3% tax in June 2025 after Trump cut off trade negotiations.
“…any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America. This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not,” Donald Trump said in a Truth Social post.
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A 100% rate would hit European exporters of cars, wine, and luxury goods hardest. It also shows how fast trade policy can spill into other markets, including how tariffs hit crypto.
Big Tech Stands to Gain
The threat aims to protect US technology leaders from foreign taxation. If governments pause their levies, Alphabet (GOOGL), Meta (META), Amazon (AMZN), Apple (AAPL), and Microsoft (MSFT) avoid a recurring cost.
The market reaction was mixed on June 26. Meta climbed toward $555.69, and Microsoft recovered to levels above $370, while Alphabet held near $341.54.
Amazon eased to $231.03 after establishing a higher intra-day high, and Apple ascended to levels above $280. The moves stayed small, despite earlier tariff-risk warnings.
The benefit is not one-sided. Apple booked about a quarter of its $391 billion in fiscal 2024 sales, roughly $101 billion, in Europe. That exposure means any retaliation from Brussels would also land on these firms.
Past rounds show how fast trade-driven market volatility can swing sentiment before any policy takes effect.
Crypto stayed calm alongside the stock reaction. Bitcoin (BTC) traded near $60,073, up about 1.5% over 24 hours, holding steady on its Bitcoin price chart. Whether Europe backs down or pushes back will decide if the calm holds in the days ahead.
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