President Donald Trump's latest threat to impose 100% tariffs on goods from European countries that introduce digital services taxes has drawn a more subdued response than similar warnings did a year ago, reflecting legal limits on his ability to act.
Get today's headlines by email 
In a post on Truth Social on Friday, Trump said any European country implementing a digital services tax would face an "immediate" 100% tariff on all goods exported to the United States. He also said such tariffs would override existing trade agreements.
Supreme Court ruling limits tariff powers
Digital services taxes are designed to allow governments to collect revenue from large online businesses, including digital advertising, streaming services and other internet-based platforms, even if those companies are not profitable. Because many of the world's biggest technology firms are based in the United States, Trump has argued that the taxes unfairly target American companies. The nonpartisan Congressional Research Service has previously said that criticism applies in some cases.
Court curbed emergency tariff authority
The legal landscape has changed significantly since Trump's earlier tariff threats. In February, the Supreme Court ruled that he had exceeded his authority by using the International Emergency Economic Powers Act, a 1974 law, to impose sweeping tariffs. The administration had argued that the statute allowed the president to introduce tariffs quickly during national emergencies, but the court rejected that interpretation.
Writing for the majority, Chief Justice John Roberts said Congress had not granted the president such broad authority, noting that tariff powers are subject to clear statutory limits.
Jeffrey Schwab, senior counsel and director of litigation at the Liberty Justice Center, which brought the case challenging the tariffs, said the president cannot impose tariffs without following the procedures established by Congress and meeting the legal conditions required.
Alternative trade measures remain slower
Following the Supreme Court ruling, the administration shifted to a different approach, introducing a temporary 10% tariff that is due to expire next month. It has also launched investigations under Section 301 of US trade law, a process that can lead to tariffs but typically takes months to complete.
During Trump's first term, several Section 301 investigations examined European digital services taxes. Those inquiries did not ultimately result in additional tariffs, instead serving as leverage during trade negotiations.
While the administration could seek to rely on those investigations again to accelerate action, trade law still imposes procedural requirements. As a result, analysts say Trump's latest threat of immediate 100% tariffs appears unlikely to be implemented quickly under existing legal constraints.
Join the discussion? 
Already a member? 
Adapted by ASEAN Now. Source 27 June 2026