Trump threatens tariff hikes on Europe over digital services taxes

Key Facts

In a new escalation of the trade war between the US and Europe, President Donald Trump threatened to significantly increase tariffs on European nations in response to their plans to impose taxes on US tech companies. The remarks, reported by the Wall Street Journal, come amid rising transatlantic trade tensions.

The threat follows European efforts to enact digital services taxes targeting American tech giants. Market data shows eurozone consumer confidence fell to -17.7 points in June, according to official figures, reflecting growing anxiety over the potential impact of the trade dispute.

Investors are closely monitoring developments, particularly upcoming European trade data and the possibility of EU retaliatory measures. On the economic front, attention is on upcoming central bank speeches for clarity on how the trade escalation might affect monetary policy.