US President Donald Trump has warned that his administration will impose a 100% tariff on goods imported from any country that charges a digital services tax on American companies. He also said the United States would cancel existing trade agreements with those countries. Trump announced on the Truth Social platform on Friday. The statement has raised fresh concerns over global trade, especially among countries that continue to tax large American technology companies.

In his post, Trump wrote, "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." He further added that "this TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not."

The Trump administration has consistently opposed digital services taxes. Trump has repeatedly argued that these taxes unfairly target major American technology companies such as Alphabet Inc. and Meta Platforms, Inc. According to him, such taxes create unfair barriers for US businesses that operate in international markets.

India is unlikely to face any direct impact from Trump's latest warning. The country has already withdrawn both parts of its Equalisation Levy, widely known as the "Google Tax." The levy mainly applied to foreign digital companies, including several based in the United States.

India introduced the Equalisation Levy in 2016. The tax applies to payments made to non-resident digital companies for providing online advertising services. The government fixed the levy at 6%. It applied to foreign technology companies that earned advertising revenue from Indian businesses even if they had no physical presence in the country.

The government later decided to remove the tax in phases. Through changes introduced in the Finance Bill, 2025, India abolished the levy on digital advertising services offered by foreign technology companies with effect from April 1, 2025. At the time of the withdrawal, government officials told HT that the decision to remove the tax was partly intended to reduce trade tensions with the US.

Before this move, India had already removed the 2% Equalisation Levy on non-resident e-commerce operators through the Finance Act, 2024. With both parts of the Equalisation Levy now withdrawn, India no longer imposes a digital services tax of the type that Trump criticised in his latest statement.

Trump's warning is expected to affect several European Union countries more than India. Many EU member states continue to impose digital services taxes on large technology companies. His announcement came a day after EU member states approved a trade agreement negotiated with the United States last year. The agreement limits tariffs on European imports to 15%. However, it does not cover digital services taxes. That issue remains one of the biggest disagreements between the US and the EU.

Most of the world's largest technology companies are based in the United States. Trump believes that digital services taxes place an unfair burden on these firms and reduce the competitiveness of American exports in foreign markets.

Earlier this month, Trump also warned France over its digital services tax. He said he would impose a 100% tariff on French wine and champagne unless France withdrew the tax imposed on technology companies.

France introduced a 3% digital services tax in 2019. The tax applies to revenue earned within the country by major technology companies, including US firms such as Facebook, Amazon, Apple, and Alphabet, Google's parent company.

The European Union reacted strongly to Trump's latest announcement. Responding to the warning, the EU on Friday said it would "respond swiftly and decisively to defend its rights and regulatory autonomy", news agency AFP quoted a spokesperson for the European Commission as saying.

The Office of the US Trade Representative has also raised concerns over digital services taxes for several years. It has repeatedly warned France, Britain, Austria, Spain and several other European countries that they could face retaliatory tariffs if they continue to impose such taxes. Trump's latest statement signals that his administration is prepared to take tougher action against countries that continue with these tax policies.