Trump threatens 100% tariff on EU countries over digital services tax

US President said other existing trade deals would be scrapped

Updated 9.21pm

US President Donald Trump on Friday threatened to slap a 100 percent tariff on European countries that impose a digital services tax, adding that existing trade deals would be scrapped.

"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," Trump said in a post on his Truth Social platform, adding that "this TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not."

The move comes just a day after EU countries gave the green light to a trade agreement negotiated last year with the United States, which caps taxes on European imports at 15 percent.

The European Union vowed on Friday a swift response if Trump carried out his threat.

"If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy," a European Commission spokesman said.