The European Union is considering new ways to respond to fresh U.S. tariffs, and American tech giants like Apple, Google, Amazon, and Meta may be the next target. However, leaders in Brussels remain divided on how — or even whether — to hit back at Big Tech.
The renewed tension follows a move by former U.S. President Donald Trump’s administration last week to impose new tariffs on EU goods. While Europe enjoys a trade surplus in goods — worth €157 billion — it runs a €109 billion deficit in services, especially in digital services dominated by American firms. European Commission President Ursula von der Leyen called digital services one of the “cards” the EU could play in this growing trade dispute.
Yet the EU faces a dilemma. While Big Tech seems like a logical target, there is no consensus on the right strategy to use. Legal, political, and economic concerns are slowing down any aggressive action.
Big Tech in the Crosshairs — But No Clear Path
American digital giants have a strong presence in Europe. From cloud storage to online shopping and social media, firms like Microsoft, Apple, Meta (Facebook), Google, and Amazon dominate Europe’s digital landscape.
Yet using EU tech laws like the Digital Markets Act (DMA) and the Digital Services Act (DSA) to retaliate against U.S. firms is controversial. These laws were designed to promote fair competition and safer online spaces — not to be used as trade weapons.
“The DMA is not a bargaining chip,” said French lawmaker Stéphanie Yon-Courtin. “This regulation is meant to create fair rules in Europe, not to be used in trade disputes.”
Still, some lawmakers want to push harder. Investigations into Apple and Meta for breaking EU competition rules are expected to conclude soon, with the first penalties likely by next week. Elon Musk’s X (formerly Twitter) is also under scrutiny for violating content rules and may face heavy fines.
Despite these steps, EU officials stress that enforcement of these rules is not politically motivated. “These laws protect European values,” said Andreas Schwab, lead lawmaker on the DMA. “They are not meant to target one country.”
A New Trade Tool Could Be Used
Another possible option for Europe is the Anti-Coercion Instrument (ACI). This tool was designed after the first Trump administration to fight unfair trade pressure. The ACI could be used to target American tech companies if Washington escalates its actions.
However, the ACI has never been used before, and some officials are unsure if now is the right time to test it.
“There is a fear that Trump will use digital services as a tool to negotiate,” warned Christel Schaldemose, a Danish MEP. “But the European Commission must stay strong.”
Digital Services Tax Back on the Table
Beyond regulations, many lawmakers are again pushing for a digital services tax — aimed at companies that make large profits in Europe but pay little in taxes.
European People’s Party (EPP) President Manfred Weber argued that “digital giants only pay a small amount for the digital infrastructure they benefit from.”
French government spokesperson Sophie Primas said that new EU measures could focus on “digital services that are not currently taxed.” Meanwhile, Sandro Gozi, a liberal MEP from France, added that “taxing American digital giants” remains a serious option.
But the EU faces a major challenge: tax rules must be approved by all 27 member states. Some countries, especially Ireland, are against the idea. Ireland is home to the European headquarters of many U.S. tech firms and fears that new taxes could damage its economy.
Irish Trade Minister Simon Harris said that targeting U.S. digital services is “not the EU’s position” and warned it could backfire.
Despite this, some nations are taking independent steps. Belgium’s government has promised to implement a digital tax by 2027 if no broader agreement is reached.
What Comes Next?
As the U.S.-EU trade conflict heats up, pressure is growing on Brussels to act. Supporters of a tougher stance say the EU must protect its interests and not appear weak in the face of U.S. pressure.
Brando Benifei, a leading social democrat in the European Parliament, called for “broad countermeasures that hit where it really hurts.” He mentioned targeting intellectual property rights and public procurement contracts as possible next steps.
Aura Salla, an EPP lawmaker and former Meta lobbyist, said digital services will “inevitably come into focus.”
Still, Brussels is walking a tightrope. Striking the right balance between defending its trade interests and avoiding a full-blown digital trade war with Washington is a complex challenge — one that will define the EU’s global tech and trade strategy in the coming months.
