EU Threatens Digital Tax on US Tech Giants Amid Trade Dispute; Von der Leyen Eyes Tariffs on Google, Meta if Trump Talks Fail

Brussels - European Commission President Ursula von der Leyen is considering taxes on American tech giants like Google and Meta if trade negotiations with the U.S. under President Donald Trump are unsuccessful. In an interview with the Financial Times on April 10, 2025, she indicated that the EU might impose levies on digital advertising revenues if a mutually beneficial agreement with Washington isn't reached. This announcement follows the EU's decision to suspend planned tariffs on U.S. products for 90 days, mirroring a similar pause by the U.S. on certain import duties. Von der Leyen stated that the EU would seek a balanced agreement during this period. However, she warned that the bloc is ready to expand the transatlantic trade war to services if talks fail, potentially including a tax on digital advertising revenues targeting tech groups like Meta and Alphabet's Google. Von der Leyen views the trade conflict as a turning point in EU-U.S. relations. She also mentioned the EU's Digital Markets Act and Digital Services Act, stressing that these tech laws are non-negotiable. The EU is also unwilling to negotiate on VAT. According to reports, German Finance Minister Jörg Kukies previously cautioned against aggressive measures against digital companies.