The European Union’s intentions to impose a digital levy on IT firms will restrict American enterprise access to the market, stated the US Trade Representative, accusing the EU of “discriminatory” actions and warning of reciprocal measures for Spotify, DHL, and SAP.
The US President Donald Trump’s administration cautioned about potential restrictions and tariffs for European Union companies due to Brussels’ plans to tax American IT corporations.
In a statement from the US Trade Representative’s Office on X, it is mentioned that American platforms and digital services furnish EU residents with complimentary access to services, sustain millions of jobs, and more than $100 billion in direct investments across Europe. The Trade Representative accused the EU of “discriminatory and harassing” measures, including legal proceedings, levies, fines, and regulatory stipulations.
“Should the EU and EU member states persist in restricting, hindering, and suppressing the competitiveness of American service providers through discriminatory methods, the United States will have no alternative but to commence utilizing all available instruments to counteract these unwarranted actions,” the agency declared.
The Trade Representative enumerated major European entities that “enjoy expanded access” to the American market: these included Accenture, Siemens, Spotify, DHL, Mistral, Publicis, and SAP.
Bloomberg, citing a source, reports that the US is preparing an investigation under Section 301 of the Trade Act of 1974, which would permit the introduction of trade actions, including tariffs, targeting European company services.
The American side’s threat is linked to the European Union’s plans to introduce a digital tax that would affect Google, Meta (the corporation is recognized as extremist and banned in Russia), and Amazon. The White House views these measures as limiting American companies’ entry into the European market. Trump asserted that digital taxes harm American business and threatened “substantial” tariffs on nations implementing them. In the summer, the United States successfully persuaded Canada to repeal a tax targeting American technology corporations.
EVP Maroš Šefčovič told Bloomberg that the EU is defending “technological sovereignty.” He indicated that he maintains ongoing contact with the US Trade Representative Katherine Tai and Secretary of Commerce Gina Raimondo. However, the US Trade Representative’s statement claims that “substantive dialogue” between Washington and Brussels on this issue has not occurred.
In early December, the European Commission fined X €120 million for violating the requirements of the European Digital Services Act. The EC concluded that the platform’s provision of the blue checkmark to denote “verified accounts” is misleading, as any user can acquire it without substantive identity verification. X’s owner, Elon Musk, responded by calling for the dissolution of the European Union and the return of full sovereignty to its member nations.
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