President Donald Trump warned on Friday that any country moving forward with digital services taxes targeting major U.S. technology companies would face immediate 100% tariffs. In a post on Truth Social, Trump stated the U.S. would impose a 100% tariff on goods imported from any nation that enacts such a tax affecting American firms, specifically naming Meta Platforms, Inc., Alphabet Inc., and Amazon.com, Inc. as targets of these measures. The threatened tariffs would supersede trade deals made with the country, whether implemented, signed, or not, significantly escalating the potential trade conflict.

Scope of the Tariff Threat

Trump specifically pointed to numerous European countries considering digital services taxes, arguing the measures unfairly single out American technology giants. Digital services taxes are typically designed to tax revenue generated by the world's largest digital companies from activities such as online advertising, digital marketplaces, and social media platforms. More than a dozen countries have already implemented similar taxes.

Precedent and Legal Authority

Trump has repeatedly opposed digital services taxes, arguing they discriminate against U.S. businesses. Last year, he threatened to halt trade negotiations with Canada over its proposed digital services tax, a measure Ottawa ultimately withdrew shortly before it was scheduled to take effect. Despite Trump's latest warning, legal questions remain over whether he can unilaterally impose such sweeping tariffs. In February, the U.S. Supreme Court struck down Trump's reciprocal tariff framework, ruling that the International Emergency Economic Powers Act did not grant the administration authority to impose individualized tariffs. Hours after that ruling, Trump signed an executive order establishing a new 10% global tariff under Section 122 of the Trade Act of 1974, though tariffs imposed under that provision are limited to 150 days unless Congress approves an extension.

S&P Global Ratings has affirmed the United States' sovereign credit ratings at AA+/A-1+ while maintaining a stable outlook. The decision is based on the agency's expectation of continued solid economic growth in the country.

The affirmation covers both the long-term and short-term sovereign credit ratings. S&P Global Ratings provided the assessment through a regulatory filing available on its official website.

Ratings Overview

The following table details the affirmed ratings for the United States:

The stable outlook indicates that the agency does not anticipate a change in the ratings over the medium term, barring significant economic shifts.