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International Business Times
International Business Times
Business
U.B. Prem

Digital Tax Tussle Opens New Trump-Europe Battlefront

European Union Donald Trump United States European Commission Washington D.C.
President of the European Commission Ursula von der Leyen at the EU headquarters in Brussels. US President Donald Trump has threatened 100% tariffs on any countries or blocs imposing a digital services tax on American firms. (Credit: NICOLAS TUCAT/AFP via Getty Images)

President Donald Trump's threat to impose a 100% tariff on all imports from countries that levy digital services taxes on US companies has thrust the European Union in another potential long-drawn out tussle against Washington.

Trump has escalated simmering tensions with the 27-member EU with the fresh tirade over taxation of US technology firms. The US administration has been fiercely critical of EU and its NATO allies over what it termed as lack of support for the Middle East conflict. After signing a ceasefire in the Middle East conflict, Trump has opened a new battlefront as he picks on the EU nations over the digital tax.

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