The European Commission on Friday pushed back against President Donald Trump’s threat to impose tariffs as high as 100% in response to any new digital services taxes on U.S. tech giants, warning that the European Union would retaliate against such a move.

“The EU and its member states have the sovereign right to regulate economic activities on their territory, in line with our democratic values and international commitments,” a commission spokesman said. “Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy.”

Trump had earlier cautioned European countries against introducing new digital services taxes, stating he would impose 100% tariffs on all goods exported to the U.S. by any nation adopting such measures. Writing on his Truth Social platform, Trump said the tariffs would override existing trade agreements regardless of whether those accords had already been signed or implemented.

The EU and the U.S. reached a trade agreement last year aimed at ending a heated tariff dispute. However, full implementation on the EU side was delayed, and EU member states along with the European Parliament introduced safeguard provisions in May. Among the measures is a mechanism allowing the EU to suspend tariff concessions if Washington breaches the agreement, including through renewed tariff increases. The deal is expected to be fully implemented by July 4.

The spokesman emphasized that EU tax measures apply equally to all large companies regardless of their country of origin and are not discriminatory. He also reiterated the EU’s support for a global approach to taxing the digital economy, in line with agreements reached by the finance ministers of the Group of Seven. “That remains our preferred path, and we are ready to engage constructively to get there,” the spokesman said.