EU stands firm despite new US tariff threats

The European Union's executive arm the European Commission has insisted the 27-member bloc has the sovereign right to regulate economic activity within its area, despite yet more threats from the United States of tariffs on European goods, as part of the long-running row over big tech firms operating within the EU.

The bloc has been wary of the power and influence wielded by major international tech companies, many of which, such as Google and Meta, happen to be US-headquartered, and is eager to ensure that they pay their taxes in the territory or region where the income is generated.

Such taxes, said an EU spokesperson, are "non-discriminatory by design and apply equally to all large companies, regardless of their origin". The United Kingdom, which is not in the EU, has similar measures in place which provoked angry threats from the US that were never followed through. Austria has had a 5 percent digital tax since 2020, and Germany began drafting legislation over the issue at the end of last year.

But US President Donald Trump has repeated his claim that such measures penalize American firms unfairly, saying "please let this statement serve to represent that any country that imposes such a (digital tax) will immediately be met with a 100 percent tariff on any and all goods sent to the USA."

Such measures, he continued,"will supersede trade deals made with the country, whether implemented, signed, or not… Additionally, the 100 percent tariff will be immediately imposed, if they proceed".

This comes against the backdrop of rumbling tensions over the tariff program he announced last year, and also the trade deal agreed with Commission President Ursula von der Leyen last July.

The European side replied to Trump's comments by saying "Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy."

Before the recent G7 leaders' summit, the US president threatened France with 100 percent tariffs on wine imports unless it got rid of its three percent digital tax, and last summer he issued a wider threat against countries that, in his words, "attack our incredible American tech companies" through digital legislation, saying all such measures were "designed to harm, or discriminate against, American technology", adding that the country and its companies "are neither the 'piggy bank' nor the 'doormat' of the world any longer".

JULIAN SHEA in London

julian@mail.chinadailyuk.com