By Admin 
US President Donald Trump has now given direct threat to many countries of the world regarding Digital Service Tax (DST). He said that whichever country imposes this tax on American technology companies, it may have to face 100 percent tariff on exports to America. Trump said that such taxes would destroy the existing trade agreement.
In a post on social media, Trump said that countries that impose digital services tax on American companies will face tough retaliatory tariffs. He also said that the existing deal will be canceled if necessary. Let us tell you that Digital Services Tax is a tax imposed on the earnings of those big digital companies which earn money from online advertising, digital marketplace and user data.
What is the logic of European countries?
Many European countries have implemented or currently propose such taxes. European countries argue that multinational technology companies should pay more taxes where they earn. America has been opposing these things for a long time. America says that American companies like Google, Apple, Meta, Amazon and Microsoft are being specifically targeted through the Digital Services Tax.
Digital service tax still unresolved
This latest warning from Trump has come at a time when despite agreeing on a major trade agreement earlier this year, the governments of Washington and European countries have not been able to reach a consensus regarding digital tax. Digital services tax remains one of the key unresolved issues in trans-Atlantic trade relations. The US President has said that any country that implements such a tax could face 100 percent tariffs on all goods exported to the US, regardless of any existing or future trade agreements.
Britain and France were also threatened
Trump has repeatedly threatened trade action against countries that have implemented digital services taxes. Earlier this year, he warned Britain that if it imposed a 2 percent digital tax on big American technology companies, tariffs would be imposed on them too. He also threatened France that if it did not withdraw its digital tax, 100 percent tariff would be imposed on its wines.