US President Donald Trump has threatened to impose 100% tariffs on goods from any European country that introduces digital services tax on American technology companies. Unlike previous similar quotes, markets have barely reacted.
"A number of European countries are debating the introduction of a digital services tax on American companies. "This statement should serve as a warning: any country that imposes such a tax will immediately be subject to a 100% tariff on all goods exported to the United States," Trump wrote on social media.
He added that the new tariff would replace all trade agreements with Washington - including the one agreed last year with the EC, which caps U.S. tariffs on European goods at 15%.
The digital services tax covers a wide range of businesses, from Google ads to streaming on Spotify. &Private companies use it to collect revenue from large online companies even when they report losses. Because most of the companies involved are American, Trump insists that these taxes discriminate against them - a position that the Congressional Research Service agrees with.
France has imposed a 3% tax on digital services revenue since 2019, and last year lawmakers proposed doubling it to 6%. &P;President Emmanuel Macron stated before the G-7 meeting that &P;Paris will not yield to pressure and will reduce taxes. In addition to France, Great Britain, Austria and Spain are also under American pressure, recalls "Reuters".
It's one thing to talk, another to be able to do it
Trump's threats will probably remain in vain. ΠThe reason - there is no easy legal mechanism for it to become a reality.
ΠAbout a year ago, the American president imposed sweeping tariffs, citing the International Emergency Economic Powers Act of 1974 (International Emergency Economic Powers Act). In February, however, the U.S. Supreme Court ruled that this practice exceeded the president's authority - thereby depriving Trump of his most powerful trade weapon.
"None of the laws that Congress has authorized the president to impose tariffs allows him to do so whenever he wants," Jeffrey Schwab of the Liberty organization told CNN. Justice Center, who presided over the case before the Supreme Court.
Following the court's decision, the administration is moving toward Plan "B" - a single 10% tariff that expires next month, and a series of Section 301 investigations (Session 301), which could result in higher tariffs, but after months of proceedings. And the sociologist says that after the midterm elections, Trump and his party will find it extremely difficult to pass any kind of legislation through Congress - especially one aimed at traditional allies.
ΠEarlier in his term, Trump launched similar investigations into European countries over their digital taxes, but in reality, they serve only as leverage. for negotiations, but not to bring to reality myths. It is not seen how it will be anything different from now on.