The US president has threatened to hit the European Union with tariffs after the bloc fined Google €890m ($1bn) for breaking antitrust rules. In a post on his social media platform Truth Social, Donald Trump said the EU would pay a "very big price" and that fines against Google, Apple, Meta and Amazon should be "entirely reversed". He announced an immediate investigation under Section 301 of the Trade Act of 1974, which allows the US to retaliate against trade practices it considers unfair.
The row centres on the European Commission's decision to fine Google for favouring its own services and apps over rivals. Trump claimed Apple had faced $15bn in EU fines, Meta $3bn and Amazon $2.5bn – though the companies have not confirmed these figures. The president accused the bloc of "robbing American companies and, in turn, the American taxpayer". The investigation could lead to new tariffs on EU goods, adding to the 10-12.5% tariffs Trump announced the day before on 60 trading partners, including the UK and EU.
“Trump's threat to investigate EU fines on US tech firms could trigger a trade war that hits the UK.”
This is not the first time the US has taken issue with European tech regulation. The EU has long taken a tougher line than the US on market dominance, privacy and tax avoidance by tech giants. Its Digital Markets Act, passed in 2022, imposes strict rules on "gatekeeper" platforms. Google has said it worked hard to comply with the Act but expressed concerns about recent European Commission decisions. The tension has escalated since Trump returned to the White House in 2024. Shortly before his election, Apple CEO Tim Cook reportedly called Trump to complain about EU fines.
For UK readers, this matters because the UK is caught in the middle. The US tariffs announced on Thursday apply to the UK as well, at a rate of 10%. A further trade war between the US and EU could disrupt supply chains and push up prices for British businesses and consumers. The UK has its own trade deals with both blocs, but any escalation could force the government to choose sides or negotiate separate arrangements. The US investigation could also affect UK-based tech companies that operate in the EU or rely on US markets.
Q: What is a Section 301 investigation? Section 301 of the Trade Act of 1974 allows the US government to investigate foreign trade practices it considers unfair, discriminatory or burdensome to US commerce. If the investigation finds a violation, the US can impose tariffs or other trade restrictions.
Q: Why is the EU fining US tech companies? The European Commission fines companies for breaking EU competition and digital rules. In Google's case, the €890m fine was for giving its own services preferential treatment in search results and on Android, which the EU says stifles competition. Similar investigations have targeted Apple, Meta and Amazon over issues like tax arrangements and market dominance.
Q: How could this affect UK consumers? If the US and EU impose tariffs on each other's goods, prices could rise for imported products. UK businesses that trade with both blocs may face higher costs, which could be passed on to shoppers. The uncertainty could also delay investment and affect the value of the pound.
What happens next? The US Trade Representative will conduct the 301 investigation, which could take months. Trump said he is considering "a substantial TARIFF" on EU goods. The EU has yet to respond officially, but it may challenge the US move at the World Trade Organization. Meanwhile, the UK government will be watching closely, as any escalation could affect its post-Brexit trade relationships.