Apr 14, 2025 17:00:00

European Commission President hints at retaliatory tariffs on digital advertising revenues from Google, Meta, etc. if Trump tariff negotiations fail

US President Donald Trump imposed

reciprocal tariffs (Trump tariffs) on April 9, 2025 local time, and on the same day suspended reciprocal tariffs for 90 days for countries that did not take retaliatory measures . Japan, South Korea, and Australia have stated that they will not impose retaliatory tariffs, but the EU has hinted at implementing 'retaliatory tariffs' that will tax digital advertising revenues from Google, Meta, and other companies if future negotiations fail.

Statement by President von der Leyen
https://ec.europa.eu/commission/presscorner/detail/en/statement_25_1036

EU could tax Big Tech if Trump trade talks fail, says von der Leyen

https://www.ft.com/content/fba18bd9-46f9-4736-89f3-976afe3abf7a

EU could tax big tech if Trump trade talks fail, Von der Leyen tells FT | Reuters
https://www.reuters.com/technology/eu-could-tax-big-tech-if-trump-trade-talks-fail-von-der-leyen-says-ft-2025-04-10/

Europe Prepares Counter-Tariffs on US Tech
https://www.pymnts.com/europe-3/2025/europe-signals-no-compromise-on-trade-prepares-counter-tariffs-on-us-tech/

Tariffs: von der Leyen reveals her cards; US Big Tech in the crosshairs if talks fail
https://www.eunews.it/en/2025/04/11/tariffs-von-der-leyen-reveals-her-cards-us-big-tech-in-the-crosshairs-if-talks-fail/

Google, Meta Could See Retaliatory Tax On Digital Ads In EU 04/11/2025
https://www.mediapost.com/publications/article/404998/google-meta-could-see-retaliatory-tax-on-digital.html

Ursula von der Leyen, president of the European Commission, the EU's executive body, issued the following statement in response to the Trump tariffs: 'We are following President Trump's announcement and want to give negotiations the opportunity. While we will finalize the adoption of EU countermeasures, which have the strong support of our Member States, we will reserve the right to implement them for 90 days. If the negotiations are not satisfactory, we will launch countermeasures. Further countermeasures are also being prepared. As I have said before, all options remain on the table.'

Von der Leyen considers a 'satisfactory' deal to be a 'balanced agreement', and if no balanced agreement is reached, retaliatory tariffs are expected to be imposed, including taxes on digital advertising revenues from Google and Meta.

Von der Leyen said President Trump's ``trade war'' had ``caused a complete inflection point in global trade,'' and while she acknowledged that the EU would have a trade surplus of 157 billion euros (about 25.5 trillion yen) with the United States in 2023, she said that because more than 80% of EU services are American, the trade balance in services, including digital, would be a deficit of 109 billion euros (about 17.7 trillion yen).

In an interview with the Financial Times, von der Leyen said, 'There are no winners in a trade war, only losers,' but it is unclear whether this thinking will be conveyed to President Trump.