** Shares of payments firm PayPal PYPL.O fell as much as 1.4%, and were last trading 0.8% lower at $68.31 premarket

** A senior European lawmaker said on Friday the European Union could charge fees on co as part of a tariff dispute with the United States

** Separately on Friday, a German government spokesperson when asked whether countermeasures could target U.S. tech companies, said "at the moment, nothing is off the table, but instead everything is being looked at"

** U.S. President Donald Trump on Wednesday said he would impose 25% import tariffs on all vehicles and foreign-made auto parts

** Tariffs on car imports are set to take effect from April 2, while those on parts from May 3

** European Commission on Thursday said that EU is preparing "robust, calibrated" response to the new tariffs

** As of last close, PYPL shares down 19.3% YTD

(Reporting by Sukriti Gupta in Bengaluru)

((Sukriti.Gupta@thomsonreuters.com;))