US President Donald Trump has threatened to impose a 100% tariff soon on any country that pays taxes on American technology companies, a move that could destroy existing agreements and reignite trade tensions around the world.
The warning is aimed at the Digital Services Tax, a tax that several European governments apply to large US technology companies. By forcing those governments, the threat can also benefit the companies themselves.
The New War on Digital Taxes
Digital Services Taxes, or DSTs, tax technology companies on revenue from local users, not their profits.
France pioneered in 2019 with a tax of 3%. It raised about €700 million ($797 million) in 2024, almost entirely from major American companies. The United Kingdom, Italy, Spain, and Austria do the same.
This method has a history. During Trump’s first term, the United States Trade Representative ruled against France. It renewed the work of 25% of French products for about $ 1.3 billion in the past to stop participate in international discussions.
OECD negotiations later stalled, reviving the debate. Canada removed its 3% tariff in June 2025 after Trump cut off trade talks.
“… Any country that imposes such a tax will face a 100% TARIFF on any and all goods imported into the United States of America. This TARIFF will supersede any Trade Deals made by that country, whether established, signed, or not,” Donald Trump he said in the Social Truth post.
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A 100% rate would affect European car dealers, wine, and luxury goods. It also shows how the trade policy can quickly affect other markets, including how Tariffs hit crypto.
Big Tech Stands to Benefit
The bill seeks to protect US technology leaders from foreign taxes. If governments suspend their payments, Alphabet (GOOGL), Meta (META), Amazon (AMZN), Apple (AAPL), and Microsoft (MSFT) avoid repeated costs.
The reaction of the market was mixed on June 26. Meta rose to $ 555.69, and Microsoft recovered to reach $ 370, while Alphabet held close to $ 341.54.
Amazon fell to $231.03 after setting a multi-day high, and Apple rose to $280. The moves were small, though old warnings of tariff-danger.
The benefit is not one-sided. apple he booked about a quarter of its $391 billion in sales in fiscal 2024, about $101 billion, in Europe. This transparency means that any retaliation from Brussels will also reach these companies.
Previous cycles indicate acceleration market volatility driven by trading he can change his mind before any policy goes into effect.
Crypto remained silent following the incident. Bitcoin (BTC) traded near $60,073, up about 1.5% in 24 hours, still holding its position. Bitcoin price chart. Whether Europe backs down or pushes back will determine whether there is stability in the days ahead.
A note 5 US Tech Stocks in Focus As Trump Threatens 100% Digital Tax appeared for the first time BeInCrypto.
