In a significant escalation of trade tensions, Trump has issued strong warnings to European countries that impose digital services taxes on American tech firms, threatening to implement a 100% tariff on their imports. This aggressive stance has sparked responses from the EU, which defends its digital tax approach and states it is prepared to take action if the U.S. follows through with these tariffs. Markets appear to be largely dismissive of these threats, as experts point out that threats alone may not significantly impact trade relations.