US President Donald Trump has threatened to impose a 100% tariff on goods from countries that charge a digital services tax on American companies.
He made the announcement on his Truth Social platform, stating that any country imposing such a tax would immediately face a 100% tariff on goods sent to the US.
The Trump administration has been a strong opponent of the digital services tax, which they claim unfairly singles out major American technology companies.
While India is unlikely to be affected, as it has already withdrawn its Equalisation Levy, the European Union (EU) nations are likely to face the brunt of Trump's tariff threat.
The EU has been a major point of contention between the US and the EU, with digital services taxes remaining a major point of disagreement.
