Asger Risom
Since Trump’s decision to impose tariffs on European steel, aluminum, automobiles, and other goods, Brussels has sought a mutually beneficial resolution. But with no clear breakthrough, von der Leyen signaled that the EU is ready to escalate.
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European Commission President Ursula von der Leyen has warned that the EU could impose new taxes on major U.S. tech companies if ongoing trade talks with Washington fail to resolve the current tariff standoff, according to Digi24.
Speaking in an interview with the Financial Times, von der Leyen said that if President Donald Trump’s trade measures remain in place, the bloc is prepared to retaliate.
“There is a wide range of countermeasures,” she stated, including the potential introduction of a digital services tax on advertising revenues generated by U.S.-based tech firms.
Brussels Weighs Digital Retaliation
Since Trump’s decision to impose tariffs on European steel, aluminum, automobiles, and other goods, Brussels has sought a mutually beneficial resolution.
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But with no clear breakthrough, von der Leyen signaled that the EU is ready to escalate.
She pointed to the bloc’s “anti-coercion instrument”—nicknamed the “bazooka”—as a possible tool to limit U.S. access to public markets or block certain investments if diplomacy stalls. The measure was originally designed to shield EU interests from economic coercion by third countries.
At the same time, von der Leyen made it clear that key EU regulations would remain non-negotiable. “Our tech laws are untouchable,” she said, rejecting U.S. complaints about non-tariff barriers, including the EU’s VAT system and digital content moderation rules.
Temporary Reprieve, Underlying Tensions
On Wednesday, Trump unexpectedly suspended a 20% tariff hike on European goods for 90 days, prompting the EU to pause retaliatory duties planned for certain U.S. products.
However, Washington has maintained its 25% duties on steel, aluminum, and cars, and a 10% base tariff on all other EU imports during the suspension.
“Tariffs are taxes that only hurt businesses and consumers,” von der Leyen said earlier this week, reiterating her longstanding call for a “zero-for-zero” trade agreement between the EU and the U.S.
Despite the temporary easing, tensions remain high, with both sides bracing for renewed clashes if the three-month window closes without progress.
