The European Union has issued a sharp warning to Washington: resolve the tariff war or face retaliation – potentially in the form of taxes on US Big Tech giants like Amazon, Google and Facebook.
European Commission President Ursula von der Leyen told the Financial Times the EU is prepared to use its most powerful trade tools if Donald Trump’s 90-day tariff truce fails to produce a deal.
“We are developing retaliatory measures,” she said, which could include levies on digital advertising revenues and tariffs on services, where the US enjoys a large trade surplus with Europe.
Trump’s decision to impose a 20% “reciprocal” tariff on EU goods has already destabilised global trade and roiled markets.
While von der Leyen has offered a zero-tariff deal on industrial goods, progress has stalled. She stressed that EU regulations on digital content and VAT remain off the table, calling them sovereign matters.
If talks collapse, the EU plans to reactivate €21 billion in tariffs on US goods, and is also exploring new measures such as a levy on scrap metal exports.
Services trade is firmly in the crosshairs, with the Commission warning that US digital dominance in Europe could soon face fresh fiscal scrutiny.
The trade war marks a turning point in US-EU relations, von der Leyen said, with neither side likely to return to the “status quo”.
She added: “There are no winners in this – only losers,” highlighting the economic uncertainty already weighing on stock and bond markets.
In the background, Brussels is quietly expanding its trade ties with Asian and Middle Eastern economies, positioning itself as a global leader in fair, rules-based commerce. But if Trump’s aggressive stance continues, the world’s biggest trading relationship may be heading for its most serious rupture in decades.
