Donald Trump says the European Union will pay a "very big price" for fining American tech giants, and he's threatening to slap on new tariffs. The US president has ordered an immediate trade investigation that could escalate into a full-blown transatlantic trade war, just as the UK grapples with its own post-Brexit relationship with both Brussels and Washington.
The row started when the European Commission fined Google €890m ($1bn) for breaking EU competition rules. The regulator said Google had given its own services — including shopping, hotels, transport and sports results — preferential treatment in its search results and app store, squeezing out rivals. That was just the latest in a long line of EU fines against US tech companies. Trump claimed in a post on Truth Social that Apple had received $15bn in EU fines, Meta $3bn and Amazon $2.5bn, though the sources of those figures are unclear. The EU has been cracking down on big tech since passing the Digital Markets Act, a law designed to prevent dominant platforms from abusing their market power.
“Why Trump is threatening EU tariffs over Google's $1bn fine and what it means for UK trade.”
Trump reacted furiously. In a post on Truth Social, he wrote: "The United States of America is not a 'PIGGYBANK' for Europe, nor will we allow it to be!" He said the US would "immediately initiate a 301 investigation" into the EU's practice of what he called "robbing American companies and, in turn, the American taxpayer". Section 301 of the US Trade Act of 1974 gives the US Trade Representative power to investigate foreign trade practices that are considered unfair, and the Trump administration has used it repeatedly — including against Brazil, India and Japan. Trump also threatened "a substantial TARIFF" on EU goods, just a day after he announced a 10% tariff on the EU as part of a broader round of tariffs on 60 trading partners.
Google welcomed Trump's intervention. José Castañeda, a spokesperson for the company, said Google had "worked hard to comply" with the Digital Markets Act but had "expressed our concerns about the impact of recent EC decisions". He added: "We appreciate the engagement by the administration and US government." Trump has long argued that EU regulators are unfairly targeting successful American companies. Before he was elected in 2024, Apple CEO Tim Cook reportedly called him to complain about EU fines. And last month Trump threatened a 100% tariff on any European country introducing a digital services tax — even though many already have one.
For UK readers, this dispute matters because the UK is caught in the middle. The UK was included in Trump's 10% tariff on the EU, even though it is no longer a member. British exporters could face further collateral damage if the US-EU trade war escalates. Meanwhile, the UK has its own digital services tax on US tech companies, which Trump has previously criticised. The UK also has its own competition regulator — the Competition and Markets Authority — which has fined Google and other tech firms. If the US wins concessions from the EU, it may expect similar treatment from other countries. And if tariffs rise, prices for imported goods in the UK could go up, adding to cost-of-living pressures.
Q: What did the EU fine Google for? The European Commission fined Google €890m ($1bn) for breaching EU antitrust rules. It said Google gave unfair preference to its own services — like shopping, hotels, transport and sports results — in its search results and Google Play store, disadvantaging competitors.
Q: What is a Section 301 investigation? Section 301 of the US Trade Act of 1974 allows the US Trade Representative to investigate foreign countries' trade practices that are considered unfair or discriminatory. If the investigation finds wrongdoing, the US can retaliate with tariffs or other trade restrictions.
Q: Could this affect UK consumers? Indirectly, yes. The UK already faces US tariffs of 10% on its exports. If a full trade war erupts between the US and EU, the UK could be caught in the crossfire. Higher tariffs could raise prices on imported goods in the UK, and the UK's own digital services tax on US tech firms might come under increased American pressure.
What happens next is uncertain. Trump has ordered the 301 investigation to begin immediately, and he has threatened to impose a "substantial" tariff on EU imports. The EU has not yet commented on the investigation, but it has previously defended its right to regulate tech companies. The Google fine was announced on Wednesday 22 July 2026, and Trump's response came on Friday 24 July. The investigation could take months, and any tariff would likely be challenged by the EU at the World Trade Organization. But with Trump's history of using tariffs as a negotiating tool, a quick resolution seems unlikely.