Trump threatens new EU tariffs over tech fines
President Trump has pledged additional tariffs against the EU to retaliate for antitrust fines on US tech firms, escalating transatlantic trade risks just a day after imposing a baseline 10% levy on the bloc.
President Trump has threatened the European Union with fresh tariffs, pledging an immediate investigation into whether Brussels is "ROBBING" American companies through regulatory fines. The threat, delivered via social media on Friday, comes just a day after his administration imposed a 10% baseline tariff on the EU alongside levies on more than 80 other countries claimed to address unfair labor practices.
The immediate catalyst is the European Commission's enforcement of its Digital Markets Act. On Wednesday, the EU fined Google €890m ($1bn) after finding its search and app store services breached online competition laws. Announcing the penalty, the Commission said Google gave "preferential treatment to its own services, including shopping, hotels, transport and sports results." Apple and Meta were also hit with steep fines last year.
Trump accused the bloc of taking "direct aim" at Apple, Meta, Amazon and Google. "The United States of America is not a 'PIGGYBANK' for Europe, nor will we allow it to be!" he wrote, warning the EU will "pay a very big price" for its actions.
Google publicly welcomed the US intervention. Spokesperson Jose Castaneda noted the company's efforts to comply with EU rules and voiced concerns about the Commission's recent decisions. “We appreciate the engagement by the administration and U.S. government,” Castaneda said.
For market professionals, the development signals a broadening of trade retaliation parameters. The administration is explicitly using tariff threats to shield American corporate interests from foreign regulatory regimes, rather than solely addressing traditional trade deficits. This introduces fresh uncertainty for US tech valuations, as companies now face a dual front: stringent EU compliance costs and the risk of escalating transatlantic trade barriers.
The strategy aligns with Trump's broader approach to economic statecraft. He previously leveraged tariff threats against Mexico and Canada to secure concessions on border security. While the US Supreme Court has mounted challenges to his unilateral tariff powers, the president has persisted, arguing these levies are necessary to revive domestic manufacturing. The European Commission did not immediately comment on Friday's threat.
