Trump vows 100 per cent import levy on nations taxing US digital services

President Donald Trump said on Friday that the United States would slap a 100 per cent levy on imports from any country that taxes digital services provided by American companies.

He set out the warning in a social media post aimed at European governments he claimed were weighing what he called "imminent" steps to charge American firms.

"Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100-per-cent TARIFF on any and all Goods sent to the United States of America," Trump wrote.

He said the punitive measure would override trade arrangements already settled through negotiation. While the threat was framed broadly enough to cover any nation adopting a digital services tax, his remarks placed particular emphasis on Europe.

Trump has long opposed overseas attempts to impose charges or tighter rules on major American technology companies. Last year he issued similar tariff warnings against countries that moved to introduce digital taxation. In an August social media post, he argued that digital taxes and related regulation "are all designed to harm, or discriminate against, American Technology".

The statement lands as Trump maintains a 4 July deadline for Washington and the European Union to approve a bilateral tariff agreement that would cap duties on most EU goods entering the US market at 15 per cent.

— AP