Key Points
- The Trump administration is threatening retaliation against the EU over its digital taxes on U.S. tech companies.
- Major European firms such as Siemens, Spotify, and DHL have been identified as potential targets for new fees or restrictions.
- The U.S. is preparing an investigation that could lead to new tariffs on European services.
- At issue are EU regulations and taxes that the U.S. claims are discriminatory and harm American businesses.
The Trump administration is threatening to impose new fees and restrictions on major European companies in retaliation for the European Union’s efforts to tax American tech giants. The move marks a significant escalation in the trade war over digital services, with companies like Siemens, Spotify, and DHL now in the crosshairs.
In a sharply worded social media post, the Office of the U.S. Trade Representative (USTR) warned that if the EU continues to “restrict, limit, and deter the competitiveness of U.S. service providers,” the U.S. will use “every tool at its disposal to counter these unreasonable measures.” The administration is reportedly preparing to launch an investigation that could lead to new tariffs.
At the heart of the dispute are the EU’s new regulations and digital taxes targeting American tech giants such as Google, Meta, and Amazon. The U.S. argues these taxes are discriminatory and unfairly harm American businesses.
For years, U.S. officials have complained about these policies, but they say the EU has refused to engage in a meaningful way.
The new threats raise the stakes in the already tense relationship between the U.S. and the EU. President Trump has repeatedly slammed the bloc and has already imposed sweeping tariffs on many European goods. He sees the digital taxes as another unfair trade barrier and has threatened “substantial” retaliation against any country that imposes them.
The EU, however, is standing firm, with its trade chief saying the bloc is determined to “protect our tech sovereignty.”
