The Trump administration has threatened retaliatory measures against the EU in response to its taxation of U.S. tech companies, with major firms such as
The U.S. Trade Representative (USTR) stated in a social media post on Tuesday, "If the EU and its member states persist in using discriminatory measures to constrain, restrict, or undermine the competitiveness of U.S. service providers, the U.S. will have no choice but to employ all available tools to counter these unreasonable actions."
The post added, "If countermeasures are necessary, U.S. law permits actions such as imposing fees or restrictions on foreign service providers."
The USTR also singled out several other European companies, including DHL Group, SAP SE, Amadeus IT Group SA, Capgemini, Publicis Groupe, and Mistral AI, stating they have long enjoyed unrestricted access to the U.S. market.
At the heart of the dispute are digital trade regulations, as the EU pushes forward with plans to tax U.S. tech giants like Google, Meta, and Amazon. Critics argue that the EU's digital tax proposal could slow technological innovation, distort global markets, and unfairly increase tax burdens.
The so-called "digital services tax" has long frustrated U.S. policymakers. Congress previously considered including a provision in Trump's signature tax cut bill to impose retaliatory tariffs on countries deemed "discriminatory" by the U.S.
On Tuesday, the USTR warned that retaliatory measures could extend to "other countries adopting EU-style strategies," a statement likely directed at Australia, the UK, and other nations considering similar policies.