The U.S. president Donald Trump threatened to impose immediate 100% tariffs on all countries that levy taxes on American technology companies—a measure that would override existing trade agreements and rekindle global trade tensions.
Warnings are aimed at Digital Services Taxes, the fees that multiple European governments impose on large American technology companies. By pressuring these governments, the threat could ultimately benefit the very same companies.
A new battle over digital taxes
Digital Services Taxes, or DSTs, tax the income technology companies earn from local users—not their profits.
France was the first to roll out this model in 2019 with a 3% fee. It generated about €700 million ($797 million) in revenue in 2024, almost entirely from major US tech companies. The UK, Italy, Spain, and Austria have similar measures.
This tactic has worked before. In Trump’s first term, the US Trade Representative concluded that France’s tax was discriminatory. They set clear 25% tariff rates on roughly $1.3 billion worth of French goods before suspending them for global negotiations.
These OECD negotiations later stalled, and the dispute flared up again. Canada ended its own 3% tax in June 2025 after Trump ended the trade talks.
“…any country that introduces such a tax will immediately be met with 100% TARIFFS on all goods shipped to the USA. This TARIFF RATE will override trade agreements with the country, whether they are implemented, signed, or not,” said Donald Trump in a Truth Social post.
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A 100% rate would hit European car, wine, and luxury-goods exporters hardest. It also shows how quickly trade policy can spread to other markets, including how tariff rates affect crypto.
Big Tech could benefit from it
The threat is meant to protect US tech executives from overseas taxation. If the authorities put their fees on hold, Alphabet (GOOGL), Meta (META), Amazon (AMZN), Apple (AAPL), and Microsoft (MSFT) avoid a recurring cost.
The market reaction was mixed on June 26. Meta rose toward $555.69 and Microsoft recovered to levels above $370, while Alphabet stayed near $341.54.
Amazon fell to $231.03 after setting a higher intraday peak, and Apple rose to levels above $280. The moves remained small, despite earlier warnings about the risk of tariffs.
The advantage is not one-sided. Apple generated about one-fourth of its $391 billion in revenue in fiscal year 2024—around $101 billion—in Europe. That exposure means any retaliation from Brussels would also hit these companies.
Previous rounds show how quickly trading-driven market moves can change sentiment before any policy actually takes effect.
Crypto stayed calm along with the stock market. Bitcoin (BTC) traded near $60,073, up about 1.5% over the past 24 hours, and remained steady on its Bitcoin price chart. Whether Europe gives in or pushes back will determine if the calm continues in the coming days.