The European Union is working on countermeasures in response to the tariffs that US president Trump has announced. Commission president Ursula von der Leyen calls the American tariffs a heavy blow to the global economy. In addition to already planned tariffs on American goods worth 26 billion euros, the EU is now considering additional measures. These include tariffs on digital services from big tech companies.
The European Commission is responding forcefully to President Donald Trump’s import tariffs. On Wednesday, Trump announced a minimum tariff of 10% on most goods imported into the US. There is a higher tariff of 20% on products from the European Union.
Von der Leyen has made it clear that the EU will not hesitate to react if negotiations with Washington fail. “We are now preparing further countermeasures to protect our interests and companies,” she said during her visit to Samarkand, Uzbekistan. These might include big tech tariffs, among other measures.
Every option is now on the table within the EU to counter Trump’s tariffs. Several reports mention tariffs or taxes on big tech companies like Amazon, Apple, Google, Microsoft, Meta, Netflix, and X (formerly Twitter). They will probably face the consequences of Trump’s tariffs. It’s unclear if the EU will impose a big tech tax on (several) tech companies or impose tariffs on their digital services.
First package already in preparation
The Commission president emphasized that the EU is already finalizing an initial package of tariffs on American goods worth up to 26 billion euros. These will take effect in mid-April. These measures are a response to the American steel and aluminum tariffs that took effect on March 12.
A French government spokesperson explained that further measures could cover a broader range of goods and services. These could come into force at the end of April. Although nothing has been finalized yet, tariffs on digital services from big tech companies, particularly, are expected to be a major focus in this new countermeasures.
Big tech digital services will suffer
The focus on digital services is strategically smart. The EU has less leverage in a conventional tariff war on physical goods. In 2024, imports of American goods into the EU amounted to approximately 334 billion euros. Meanwhile, the EU exported 532 billion euros to America. Thus, including big tech tariffs might impact the trade balance significantly.
The EU is likely to opt for stricter regulation and taxes for tech giants such as Amazon, Apple, Google, Microsoft, Meta and X. The EU has already started going down this road with the Digital Markets Act, which is intended to limit the power of dominant tech companies. Now, the EU is also considering tariffs on these companies’ services. This may mean European citizens will likely have to pay more. However, the tech companies will also earn less. The result will be increased pressure on Trump. The tech giants have not responded to Trump’s levies, but they will not be happy. Many of them produce or purchase hardware manufactured outside of the United States, which makes their products and services more expensive. If it also makes access to the European market more expensive, it will cripple their margins.
The EU would also consider limiting government contracts to American organizations and limiting American banks’ access to the European market. By threatening these sanctions, the EU hopes that Trump will move towards a deal.
Avoiding a trade war
On Wednesday evening, Italian Prime Minister Giorgia Meloni stated that the EU would strive for an agreement with the United States to prevent a trade war. However, she did not rule out the possibility that an “adequate” European response might be necessary if the talks stall. Big tech tariffs could be a significant aspect of this adequate response.
EU trade ministers are expected to discuss the nature of possible countermeasures at their next meeting in Luxembourg on Monday. The pressure on the EU to formulate a balanced, but effective response is high, given the significant export interests of European companies.
Also read: Trump announces hefty tarrifs on chips