Former U.S. President Donald Trump has threatened to impose a 100% tariff on goods imported from the European Union if the bloc proceeds with its digital tax targeting large technology companies. The threat was made in a recent statement, escalating tensions over the ongoing dispute. The EU’s digital tax aims to ensure fair taxation of tech giants, many of which are American, based on their revenue generated within the EU. The European Commission has responded, stating the proposed tariffs are unjustified and asserting the EU’s right to independently legislate on taxation matters. Officials indicate the EU will respond to the threat, though specific retaliatory measures have not yet been outlined. This development raises concerns about a potential trade war between the U.S. and the EU, impacting economic relations on both sides of the Atlantic. The digital tax has been a point of contention for years, with the U.S. arguing it unfairly targets American companies.