Trump is threatening a new trade war. The EU should call his bluff

June 29, 2026 — 11:59am

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No sooner had the ink dried on the European Union’s reluctant signing of the trade deal it agreed with the US last year than Donald Trump threatened to tear up that deal and impose 100 per cent tariffs on the EU’s exports to the US.

The belated signing of the deal struck at Trump’s Turnberry golf course in Scotland last July occurred on Thursday last week, after the EU’s assent to it was repeatedly delayed by Trump’s threats to take over Greenland.

On Friday, in a post on his Truth Social platform, Trump made his threat of a new trade assault on Europe.

“Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies,” he wrote.

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“Some of these Countries are close to actually doing this. Please let this statement serve to represent that 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. This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not. Additionally, the 100 per cent TARIFF will be immediately imposed, if they proceed. Thank you for your attention to this matter. President Donald J. Trump.”

Earlier this month Trump threatened to put a 100 per cent tariff on French wines as retaliation for France’s 3 per cent digital services tax, although he hasn’t yet done so.

Now he’s saying he will impose a 100 per cent tax on all the exports to the US of any EU state that has, or plans, a digital services tax, which would effectively close the US market to their goods.

The EU responded to Trump’s threat by describing digital services taxes as “non-discriminatory” and that “unilateral measures targeting such legitimate policies are unjustified.”

“If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy,” it........

© The Sydney Morning Herald