EU Weighs Tech Restrictions in Response to US Tariff Threat
The European Union could restrict US tech companies’ access to European users if President Donald Trump imposes threatened tariffs on the bloc, the Financial Times reported Wednesday.
The EU might deploy its anti-coercion mechanism, a trade defense tool introduced in 2023, to counter anticipated Trump tariffs. Brussels suspects Trump aims to pressure the EU into letting the US take Greenland from Denmark and easing regulatory pressure on American tech companies.
“All options were on the table,” one EU official told FT, speaking on condition of anonymity. Another official said the bloc had not decided whether to target US services and intellectual property rights.
Read: Trump Threatens EU With New Tariffs
Trump declared Sunday that tariffs “will definitely happen with the European Union.” The National Institute of Economic and Social Research warns a 10% US tariff on all imports could cut global growth by 1% over two years if trading partners retaliate.
Meta policy chief Joel Kaplan backed CEO Mark Zuckerberg’s view that EU fines, including Meta’s recent $840 million antitrust penalty, amount to “a tax or tariff on US companies.” Zuckerberg last month urged Trump to intervene against such EU penalties.
The EU’s anti-coercion tool, already used to deter Chinese import restrictions, would mark its first deployment against US services if activated.
China’s response to Trump tariffs
China, meanwhile, has already begun retaliating against US tech firms. One day after Trump announced a 10% tariff on Chinese imports, China’s State Administration for Market Regulation prepared to investigate Apple‘s (Nasdaq: AAPL) app store practices, including its 30% commission on in-app purchases and restrictions on third-party payment services.
Chinese regulators also launched an antitrust probe into Alphabet-owned Google (Nasdaq: GOOG), despite the company’s limited presence in the country. The investigation reportedly focuses on Google’s restrictions on Chinese smartphone manufacturers.
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