(AFP) – US President Donald Trump on Friday threatened to hit the European Union with tariffs and a formal trade investigation over Brussels’ latest antitrust penalty against Google. In a post on his Truth Social platform, Trump said the bloc “will pay a very big price for this illegal and highly unethical conduct, which I have consistently warned them about.” He said he would “immediately initiate a 301 Investigation” into what he called the EU’s practice of “ROBBING” American companies, and said he anticipated a “substantial TARIFF” on the bloc “at the earliest possible moment.” “The United States of America is not a ‘PIGGYBANK’ for Europe, nor will we allow it to be,” he wrote.
Section 301 of the 1974 Trade Act allows Washington to probe foreign practices it deems discriminatory and retaliate with tariffs. Trump’s threat came a day after the White House announced sweeping new tariffs of 10 percent to 12.5 percent targeting 60 trading partners including the European Union. The fresh duties took effect Friday after investigations, and relied on the same legal justification under Section 301 of the Trade Act. Trump has been moving to rebuild his tariff wall — and his ability to impose duties on short notice — after the US Supreme Court struck down many of his levies in February.
The European Commission on Thursday fined Google 890 million euros ($1 billion) for breaching the Digital Markets Act (DMA), the bloc’s landmark law policing the conduct of dominant online platforms. It was the first penalty imposed on the company under the legislation. The Commission issued two separate decisions: a 460-million-euro fine for favoring Google’s own shopping, hotel, transport and sports services in search results, and a 430-million-euro fine over restrictions that stopped app developers from steering users toward cheaper offers outside the Google Play store.
US Trade Representative Jamieson Greer had already criticized the decision on Thursday, saying the EU’s enforcement action undermined “constructive dialogue” and posed a “real risk” to transatlantic trade stability. Under the DMA, the Commission can fine Big Tech gatekeepers up to 10 percent of global annual turnover for breaches, and up to 20 percent for repeat offenses. An EU official said Thursday’s penalties amounted to just 0.22 percent of Google’s turnover.
EU tech chief Henna Virkkunen insisted Europe would not back down from applying its laws, telling journalists: “We are very committed to our rules.” EU officials have repeatedly insisted that their digital rulebook is not aimed at American firms, though Washington repeatedly rejects that claim. US technology giants have cultivated closer ties with the White House since Trump’s return to office in January 2025, with several companies lobbying the president directly over European regulation.
The renewed tensions test the trade framework agreed between Washington and Brussels last year, which lowered US duties on European cars in exchange for concessions from the bloc. Both sides struck the deal to avoid a painful trade war, and it cleared its final legal hurdles in the EU only recently.
– Alex PIGMAN
© 2024 AFP
