Trump threatens 100% tariffs on EU tech taxes

President Trump threatened Friday to scrap a trade deal with the European Union and impose 100 percent tariffs on member states over their digital services taxes, a move that would directly strike at the EU's technology and data sectors. According to the New York Times, Trump claimed the tariffs would override the agreement European officials had just finalized, though it remained unclear how quickly he could enact such measures or whether Congress would support them.

The threat comes as European leaders, including Italy, are attempting to forge a unified defence and economic posture independent of Washington. The E5 group—Germany, France, Italy, the UK and Poland—coordinated this week on defence policy ahead of the NATO summit, but the EU's economic cohesion now faces a direct test from the US administration's unilateral trade pressure.

Italy, as the eurozone's third-largest economy and home to significant technology firms and digital services operations, faces material exposure to American tariff escalation. Rome has historically sought to balance transatlantic economic ties with EU solidarity, but Trump's threat to override a freshly-negotiated agreement signals a willingness to weaponize trade policy against the bloc as a whole.

The digital services tax has been a recurring point of friction between Washington and Brussels. The EU imposed the tax on large technology companies—primarily American firms—as a means of capturing tax revenue from digital commerce. The newly-finalized trade deal was intended to resolve this dispute, but Trump's threat to unilaterally override it suggests the administration views the agreement as inadequate.

The timing of Trump's threat compounds existing strain in the US-Italy relationship. Prime Minister Meloni has publicly criticized Trump's rhetoric and policies in recent days, citing what she called his constant, unprovoked attacks on European leaders. Her recent bilateral meeting with French President Macron on the Riviera was framed partly as a reassertion of European unity in the face of American unpredictability.

For Italy specifically, the threat carries economic weight. Italian firms in digital services, fintech, and technology sectors would face the same tariff exposure as larger European competitors. Rome's broader trade position—as an exporter of machinery, fashion, and luxury goods to the US market—also depends on stable transatlantic commerce. A tariff escalation could ripple through Italy's manufacturing heartland, particularly in regions like Lombardy and Emilia-Romagna where precision engineering and luxury production are concentrated.

The threat also tests the EU's ability to respond with unified economic strategy. European leaders have committed to strengthening the bloc's strategic autonomy, but Trump's unilateral action could fracture that unity if individual member states seek bilateral accommodations with Washington. Italy, which has historically maintained close ties with the US, may face particular pressure to negotiate separately.