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Trump threatens 100% tariff on European countries that impose digital tax

‘Numerous’ EU countries had been discussing putting a digital services tax on American companies, Trump wrote on Truth Social. Photograph: ABACA/ShutterstockView image in fullscreen‘Numerous’ EU countries had been discussing putting a digital services tax on American companies, Trump wrote on Truth Social. Photograph: ABACA/ShutterstockDonald TrumpTrump threatens 100% tariff on European countries that impose digital tax US president says levy would be imposed immediately and supersede pre-existing trade deals with the country Donald Trump has threatened to place a 100% import tariff on any European country that imposes a tax on digital services from US companies. Writing on Truth Social on Friday, the US president said that “numerous European countries” had been discussing putting a digital services tax on American companies and that “some of these countries are close to actually doing this”. “Please let this statement serve to represent that any country that imposes such a tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America,” Trump continued. He added that the tariff would be immediately imposed and supersede any other prior trade deals that existed with the country. The threat could set off another saga in Trump’s global trade war, in which he has placed drastic tariffs on countries and economic blocs at once. If Trump followed through on his warning, it could set off a larger trade war between the US and EU if the 27-country economic bloc felt compelled to retaliate to the tariff hike. France, Spain and Italy impose a digital services tax of 3% on large companies working in their countries, while several other EU countries have either implemented or proposed similar policies. The UK has a 2% digital services tax that applies to social media platforms, large search engines and online marketplaces which have global revenues from digital services exceeding £500m , total UK revenues of over £25m and “derive value” from UK users. The digital services tax applies to US tech companies such as Apple, Google and Amazon, and raised more than £800m in 2024-2025, according to the UK Treasury. An EU spokesperson said that the economic bloc reserved the right to defend itself against such tariffs. “Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy,” said Olof Gill, a spokesperson for the European Commission. Gill said that digital services taxes did not target companies from any countries in particular and that they applied to “all large companies, regardless of their origin”.

Trump threatens 100% tariff on European countries that impose digital tax
Europe
BBC Business

Chinese tycoon sentenced to 30 years in US jail

Guo Wengui, who was once believed to be one of China's richest businessmen, has been sentenced to 30 years in jail in the US for running a billion dollar scam. The former property tycoon fled China to the US in 2017, where he reinvented himself as a Communist Party critic and built a loyal online following. But Guo was later convicted on charges of racketeering, fraud and money laundering. New York court judge Analisa Torres said Guo had "preyed on those seeking to bring democracy to China", taking their money to fund his lavish lifestyle. Guo - who goes by several names, including Miles Guo and Ho Wan Kwok - was sentenced in a courtroom packed with his supporters. US attorney Sean S Buckley told the BBC: "Rather than being satisfied with the many legitimate opportunities afforded to him, Guo exploited the trust that thousands had placed in him for his own greed." "Today's sentence shows that fame and wealth do not place you above the law, and that fraudsters who victimise families to enrich themselves will be met with significant consequences," Buckley said. Before fleeing China, Guo built a fortune as a property developer and had good ties with the country's government. But he sought asylum in the US after being accused by top Chinese officials of corruption. Guo became a critic of China's Communist regime and cultivated a wide online following among the Chinese community in the US. Prosecutors said Guo raised more than $1bn (£760m) from online followers, who joined him in investment and cryptocurrency schemes between 2018 and 2023. The money he raised was used to fund Guo's lavish lifestyle which included a 50,000 square foot mansion, a $1m Lamborghini and a $37m yacht, they said.

Chinese tycoon sentenced to 30 years in US jail
Europe
BBC Business

Shetland set to back £1.5bn plan to connect islands with undersea tunnels

Image source, Estunlar.foImage caption, The Faroe Islands serve as the inspiration for the Shetland tunnels project Undersea tunnels connecting some of the UK's most northerly islands could be in place within eight years, under plans expected to be approved on Tuesday. A feasibility study for Shetland Islands Council proposes replacing ageing ferries with tunnels from Shetland's mainland to Yell and from Yell to Unst, describing them as "economically transformative". Two more tunnels, to the islands of Whalsay and Bressay, could follow under the plans, which are estimated to cost £1.5bn. Council leaders say the tunnels would be cheaper than building new ferries and replacing harbours. The council is expected to explore funding from a mixture of private investment, public subsidy and borrowing, along with tolls covering maintenance costs. The council's transport chairperson, Moraig Lyall, said the report showed there were no technical barriers to building tunnels, which would be "cheaper in the long run" than ferries. The council currently runs ferry services to nine islands, carrying around 750,000 passengers each year on 12 vessels at a cost of £23m per year. Image caption, Moraig Lyall says tunnels which would be "cheaper in the long run" than ferries. Costs have risen sharply in the past decade, with some routes struggling to meet demand for vehicle places. Lyall said: "The system we have that has served us well for decades is now no longer able to do that. "It doesn't have the capacity and we're struggling with other things, like the ability to crew the system adequately.

Shetland set to back £1.5bn plan to connect islands with undersea tunnels
Europe
BBC Business

Homes harder to sell as high mortgage rates frustrate buyers

Image source, Getty ImagesByKevin PeacheyCost of living correspondentPublished4 hours agoThree in five homes listed for sale since January remain on the market, according to property portal Zoopla, as high mortgage rates frustrate potential buyers. A lack of demand from buyers, as well as some high asking prices from sellers, have left homes in some areas unsold. Agreed sales were 7% below last year, Zoopla said, but the picture varied across the country with sales down 12% in Wales and 11% in the East Midlands. First-time buyers were most exposed to high mortgage rates, although there are now signs of greater competition among lenders who are lowering rates. A jump in mortgage rates in April - prompted by financial upheaval caused by the US-Israeli war with Iran - added an average of £125 a month to a typical mortgage at its peak compared with January. In London, the peak saw £232 a month added to the average first-time buyer's costs. The average two-year fixed rate jumped from 4.83% at the start of March to a peak of 5.90% on 12 April, according to the financial information service Moneyfacts. It has since dropped to 5.54%. The increase was a major factor in pushing down demand from buyers in the UK by 15% compared with a year earlier, according to Zoopla's report which considers the market to the end of May. However, in the north east of England mortgage costs for first-time buyers were only £66 a month higher over the same period. "The national picture can only tell you so much," said Richard Donnell, executive director at Zoopla. "For sellers still waiting for an offer, the conversation to have is about price. Correctly priced homes are selling, while overpriced homes are sitting." However, he pointed out that recent cuts in mortgage rates were a positive for buyers.

Homes harder to sell as high mortgage rates frustrate buyers
Europe
BBC Business

Hollywood director gets two and a half years in prison for defrauding Netflix

Image source, Getty ImagesByMadeline HalpertPublished7 hours agoA Hollywood director convicted of defrauding Netflix of $11m (£8.3m) last year has been sentenced to two and a half years in prison. Carl Erik Rinsch was accused of using Netflix funds intended to complete a science fiction series to buy cars, cryptocurrency and other luxuries for himself. The 48-year-old, best known for the 2013 film 47 Ronin, was convicted of federal fraud and money laundering for misusing funds. Rinsch faced up to 90 years in prison, but was expected to receive a lighter sentence. Judge Jay Rakoff also sentenced Rinsch to three years of supervised release, $11m in forfeitures, and a $700 fine. Speaking to the court before the judge issued his sentence, Rinsch apologised and said he accepted responsibility for his crimes. "Today's sentence sends a deterrent message: Fraud will not be tolerated," US Attorney Jay Clayton said in a statement. Prosecutors said Netflix gave Rinsch roughly $55m for the unfinished sci-fi show, initially named White Horse, including $11m he told them he needed to complete production. Instead, prosecutors said, he put the money in a personal account where he invested it and lost half within a couple of months. He put funds into cryptocurrency, and spent money on lavish purchases such as Rolls Royce cars and mattresses costing hundreds of thousands of dollars, according to prosecutors. During his one-week trial in New York, several Netflix executives were called to testify, saying they only agreed to one season of the show, which Rinsch failed to deliver. Rinsch took the stand as well - a rare move for a defendant in a criminal case - claiming the situation was a misunderstanding and he believed the money was meant to keep the show going during the pandemic.

Hollywood director gets two and a half years in prison for defrauding Netflix
Europe
BBC Business

Trump threatens 100% tariff on European nations over tech tax

Image source, Getty ImagesImage caption, US President Donald Trump speaks during an event in the Oval Office of the White House on June 22, 2026 in Washington, DC. US president Donald Trump has vowed to impose a 100% import tariff on any European country that introduces a digital services tax on American technology giants. Writing on his Truth Social platform, Trump said "Numerous European countries" had been discussing bringing in such a levy and some were close to doing so. He warned that the punitive penalties would be applied immediately and would completely "supersede" any existing bilateral trade agreements. While the post targets nations planning the "imminent implementation" of new levies, the precise implications for the UK were not immediately clear, given London has had such a tax in place since 2020. "Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America," he wrote. Britain's 2% Digital Services Tax (DST) applies to major search engines, social media platforms, and online marketplaces with global revenues from their digital businesses exceeding £500 million, and total UK revenues surpassing £25 million. It impacts some of the largest US companies, including Apple, Google, Meta, and Amazon and raised more than £800 million in 2024–25, up from £678 million in 2023–24, according to the Treasury. In April, Trump said that the UK faced "a big tariff" for purportedly targeting major US companies with a tax. "They think they're going to make an easy buck, that's why they've all taken advantage of our country", Trump said at the time. The Department for Business and Trade and the Treasury have been contacted for comment. Trump's threat of retaliation against European nations that may be planning to launch or revise their own such tax comes just days after the US and EU finali, externalsed a new trade deal, external.

Trump threatens 100% tariff on European nations over tech tax
Europe
BBC Business

We had packed lunches every day for 10 years and retired at 40

Every winter, Alan and Katie Donegan would avoid turning on the heating at their home in the south of England. "Instead, we wore extra layers and used hot water bottles - we turned it into a game," says Alan. "It wasn't suffering, it was strategy." While the couple admit that others thought they were "extreme" or "mad" to put so much emphasis on not spending money, Alan explains that they were "laser-focused on buying freedom". By "freedom" he means early retirement, which the Donegans managed to achieve seven years ago when Alan was only 40, and Katie just 35. The two rarely had takeaways and always took packed lunches to work. "We were £40,000 better off over 10 years from just that one lunch habit," says Alan. "We even charged our phones while out and hunted for discarded Nectar [supermarket] vouchers. You can decide if that's crazy or genius, but it worked." Alan had worked as a landscape gardener before launching a training and life-coaching business, while Katie was an actuary, or risk assessor, for a financial firm. Aside from their good incomes, their extreme saving habits meant they were able to retire early - and they put as much money as they could possibly afford into investments. "Every pound we invested was a step closer to the life we wanted," says Katie. They quit work after their savings hit £1m. Alan and Katie are part of a small but growing global movement called Fire, which stands for "Financially Independent, Retire Early". From a little-known concept 15 years ago, there are now almost a million members of the main Fire discussion board on social media site Reddit, and mainstream financial institutions now publish numerous guides on the topic. The central tenet is that you live extremely frugally during your working life, so that you can retire as soon as possible.

We had packed lunches every day for 10 years and retired at 40
Europe
BBC Business

Burnham's 'Manchesterism' could change the UK, but is not yet a full economic plan

Image source, AFP via Getty ImagesByFaisal IslamEconomics editorPublished29 June 2026"True to the motto of this city, I am going to do things differently," Andy Burnham declared, a reference to the film 24 Hour Party People. His speech in Manchester did indeed show a rather different way of seeing and running the UK. The departing Greater Manchester mayor presented a diagnosis of what has caused economic malaise, rooted in his own experiences running the city and when he was previously in Cabinet. At its heart it is a critique of an unresponsive British state, adept at arguing with itself, rather than achieving real change and rebuilding the country. His solutions were ambitious, and mostly rather general, taking power from the centre and giving it to regions and cities, as occurs routinely in other advanced countries. Burnham tells a story of his time as chief secretary to the Treasury, two decades ago, wishing to build a northern equivalent to London's Crossrail, but being told it would not pass the Treasury cost benefit equation. His speech today was not a detailed plan for the economy, with assessments of appropriate levels of tax, spend, investment and infrastructure and strategies for trade, AI and Europe. Perhaps that is partly because this is still officially a Labour leadership campaign. It rather appears that he is trying to keep as much powder dry as possible on the precise trade-offs, for as long as possible. There was general policy direction on changes to business rates, housebuilding, technical education, and infrastructure. The upbeat and optimistic tone was also notable. In two specific areas Burnham appeared to want to communicate a capacity for being prudent on spending and borrowing. He confirmed he will stick to existing borrowing rules, and also backed the Milburn Review into young people's employment outcomes, which could lead to welfare savings. These are two parts of what has been described to me as a broad five-part plan. Devolution, and industrial policy are two other legs. The remaining part was referred to by Burnham as quicker help on the cost of living. How does this all square with sticking to the 2024 manifesto not to raise the major taxes and the fiscal rules?

Burnham's 'Manchesterism' could change the UK, but is not yet a full economic plan
Asia
The Hindu BusinessLine

US President Trump thanks Telangana government for naming Hyderabad street after him

The US President Donald Trump thanked the Telangana Government for naming a street in Hyderabad after his name. As a tribute to the spirit of the American Revolution on the occasion of its 25th anniversary on July 4, 2026, Telangana Government officially named a street housing the US Consulate in the Financial District in Gachibowli here as `Donald J Trump Avenue’. In a post on the `Turth’ account on Saturday, the US President thanked the government by posting: “The New Donald J Trump Avenue in Hyderabad, India - The first US president to ever be honoured in this way - Thank you!’’ Telangana Deputy CM Bhatti Vikramarka, formally launched the plaque displaying the street name during the celebrations of 250th Anniversary of the American Independence at the US Consulate at NanakramGuda, financial district here earlier. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

US President Trump thanks Telangana government for naming Hyderabad street after him