A new trade conflict is escalating between the EU and the US. Starting Thursday, the US will impose high import tariffs on cars and car parts, particularly affecting European industry. In response, the EU Commission is planning countermeasures. This time, the focus is not on machinery or traditional industrial goods, but on major US tech companies such as Apple, Meta, and X.
US President Donald Trump has announced that he will impose a 25 percent import tariff on cars and car parts from abroad. This decision hits the EU hard, as many car manufacturers and suppliers are based in Europe. Previous attempts by the EU to find a solution through negotiations have failed. Now Brussels wants to send a signal – not with the same methods, but with a new strategy: tariffs and fees for the US technology sector.
EU examines digital levies and new import tariffs
The EU Commission is considering several measures. Tariffs on computers and IT hardware, as well as a digital levy for providers of digital services, are under discussion. The reasoning: The regulatory requirements for these platforms in the EU are high, and this burden must be offset by appropriate levies. Initially, the Commission had planned to impose tariffs on industrial goods as well. Trade Commissioner Maros Sefcovic presented a 99-page list of affected products. This list was intended to put pressure on the US government, but had no effect. Therefore, the IT sector is now in focus (via Handelsblatt).
Apple particularly affected
Apple could be hit twice by the EU's plans. Firstly, for the import of devices such as iPhones, MacBooks, iPads, and the like! Secondly, for the multitude of digital services the company offers – including the App Store, iCloud, streaming services, and software subscriptions. This makes Apple one of the companies most affected by the potential EU measures.
Meta and other platforms under observation
Other large platform operators such as Meta could also be affected by a digital levy. No concrete figures are yet available, but one thing is clear: the EU intends to use this measure to specifically target large US corporations that have previously had high sales in Europe but comparatively low tax burdens.
EU considers banning advertising on X
One measure is specifically tailored to the X platform, formerly known as Twitter. The EU Commission is considering a ban on personalized advertising on X. This would virtually dry up the platform's main source of income in Europe. This consideration also has a political component: X is one of the companies owned by Elon Musk, who actively supports the Trump administration. Musk currently heads the US Department of Government Efficiency and plays a central role in Trump's administration team.
EU relies on negotiations but remains determined
Despite considerations of new tariffs and duties, the EU Commission is focusing on talks for the time being. It wants to wait and see what concrete measures the US implements in the coming days. Commission President Ursula von der Leyen made it clear that additional tariffs are not the goal. She said tariffs are "bad for businesses and even worse for consumers." But the EU no longer wants to simply react, but rather act confidently.
Digital sector instead of industry: New EU strategy?
The US decision to impose high tariffs on European cars and car parts is provoking a clear backlash from Brussels. The focus is now on the digital sector, with Apple, Meta, and X in particular coming under scrutiny. The EU is considering tariffs, fees, and even an advertising ban. Nothing has been decided yet, but one thing is clear: the EU no longer intends to remain defensive in this trade dispute. (Photo by Alexey Larionov / Bigstockphoto)
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