EU issues warning to US tech powerhouses
Brussels could target American “digital services” if tariff talks collapse, according to Ursula von der Leyen. The European Union is ready to implement tariffs on major US tech firms, including Meta and Google, if discussions with Washington...
TroibNews 
Brussels could target American “digital services” if tariff talks collapse, according to Ursula von der Leyen.
The European Union is ready to implement tariffs on major US tech firms, including Meta and Google, if discussions with Washington do not successfully address the ongoing trade dispute, as cautioned by European Commission President Ursula von der Leyen.
Following President Donald Trump’s decision to suspend further tariff increases for 90 days, EU exports to the US will continue to be subject to a “baseline” 10% import duty instead of the previously planned 20% under the new trade arrangement. Nonetheless, the European Commission has indicated it will temporarily halt its countermeasures while negotiations are ongoing.
In an interview with the Financial Times on Thursday, von der Leyen stated that Brussels was prepared to use its most effective trade tools, potentially targeting American digital service providers and the advertising revenues of major tech companies in Silicon Valley.
"We are developing retaliatory measures,” von der Leyen explained, adding that these could mark the initial use of the EU’s anti-coercion mechanism to target services rather than products. “There’s a wide range of countermeasures… in case the negotiations are not satisfactory.”
She elaborated, “An example is you could put a levy on the advertising revenues of digital services,” specifying a measure that could apply throughout the entire single market of the bloc, in addition to individual digital sales taxes imposed by member states.
While the EU is dedicated to achieving a “completely balanced” agreement during Trump’s 90-day tariff freeze, von der Leyen made it clear that Brussels would be prepared to act if the discussions do not yield positive results. The Commission is also exploring tariffs on US scrap metal exports and devising protective measures to prevent a surge of Chinese goods—currently subject to prohibitively high 145% US tariffs—from entering European markets.
Von der Leyen characterized Trump’s tariff conflict as a “turning point” for global trade, asserting that there will be no return to the prior “status quo” between the EU and the US. She noted that Brussels had sought to negotiate with Washington in recent months but was advised to wait for Trump’s April 2 announcement, which included a 20% “reciprocal” tariff on the EU.
While both sides recognize that reform of the World Trade Organization is necessary, von der Leyen cautioned that the economic turmoil provoked by Trump’s tariffs is already imposing significant costs on global markets.
“There are no winners in this, only losers,” she said. “Today we see the cost of chaos… the costs of the uncertainty that we are experiencing today will be heavy.”
Von der Leyen confirmed that the EU would defer its retaliation plans against US steel and aluminum tariffs during the discussions but emphasized that Brussels would not compromise on its “untouchable” regulations regarding digital content, market power, and other “sovereign decisions.” Additionally, the bloc will not engage in negotiations over value-added tax, which US officials, including Trump, consider “discriminatory” against American exporters, even though both imported and domestically produced goods are subjected to the same taxation.
Max Fischer for TROIB News
The European Union is ready to implement tariffs on major US tech firms, including Meta and Google, if discussions with Washington do not successfully address the ongoing trade dispute, as cautioned by European Commission President Ursula von der Leyen.
Following President Donald Trump’s decision to suspend further tariff increases for 90 days, EU exports to the US will continue to be subject to a “baseline” 10% import duty instead of the previously planned 20% under the new trade arrangement. Nonetheless, the European Commission has indicated it will temporarily halt its countermeasures while negotiations are ongoing.
In an interview with the Financial Times on Thursday, von der Leyen stated that Brussels was prepared to use its most effective trade tools, potentially targeting American digital service providers and the advertising revenues of major tech companies in Silicon Valley.
"We are developing retaliatory measures,” von der Leyen explained, adding that these could mark the initial use of the EU’s anti-coercion mechanism to target services rather than products. “There’s a wide range of countermeasures… in case the negotiations are not satisfactory.”
She elaborated, “An example is you could put a levy on the advertising revenues of digital services,” specifying a measure that could apply throughout the entire single market of the bloc, in addition to individual digital sales taxes imposed by member states.
While the EU is dedicated to achieving a “completely balanced” agreement during Trump’s 90-day tariff freeze, von der Leyen made it clear that Brussels would be prepared to act if the discussions do not yield positive results. The Commission is also exploring tariffs on US scrap metal exports and devising protective measures to prevent a surge of Chinese goods—currently subject to prohibitively high 145% US tariffs—from entering European markets.
Von der Leyen characterized Trump’s tariff conflict as a “turning point” for global trade, asserting that there will be no return to the prior “status quo” between the EU and the US. She noted that Brussels had sought to negotiate with Washington in recent months but was advised to wait for Trump’s April 2 announcement, which included a 20% “reciprocal” tariff on the EU.
While both sides recognize that reform of the World Trade Organization is necessary, von der Leyen cautioned that the economic turmoil provoked by Trump’s tariffs is already imposing significant costs on global markets.
“There are no winners in this, only losers,” she said. “Today we see the cost of chaos… the costs of the uncertainty that we are experiencing today will be heavy.”
Von der Leyen confirmed that the EU would defer its retaliation plans against US steel and aluminum tariffs during the discussions but emphasized that Brussels would not compromise on its “untouchable” regulations regarding digital content, market power, and other “sovereign decisions.” Additionally, the bloc will not engage in negotiations over value-added tax, which US officials, including Trump, consider “discriminatory” against American exporters, even though both imported and domestically produced goods are subjected to the same taxation.
Max Fischer for TROIB News
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