Donald Trump threatened on Friday to impose new tariffs on the EU. He also intends to launch an investigation into fines imposed on American technology giants. On Thursday, Google was notified by Brussels of a fine amounting to €890 million.
“The EU will pay a very high price for this illegal and highly immoral behaviour, which I have consistently warned them against,” the US President declared on his Truth Social platform.
Trump announced that the US authorities will investigate what he describes as the “robbery” of American companies.
The technology giant was fined by the EU on Thursday. The penalties consist of two fines of broadly similar size, with a combined total equivalent to approximately NOK 10.6 billion at the current exchange rate.
Google has been fined because the EU believes the company unlawfully favoured its own services, such as Google Flights and Google Hotels, over those of competitors. In addition, the EU maintains that Google prevented app developers from showing customers free offers outside Google Play.
“We will immediately initiate a Section 301 investigation into the practice of ‘robbing’ American companies,” Trump wrote in a post on Truth Social, referring to Section 301 of the Trade Act of 1974.
He further wrote that the EU would pay a very high price for its “unethical behaviour” and warned that substantial tariffs would be imposed at the earliest possible opportunity. (NTB–Reuters)
An investigation under Section 301 of the Trade Act gives the President the authority to impose tariffs on countries that discriminate against American companies. Trump invoked the same provision this week to impose tariffs ranging from 10 to 12.5 per cent on US trading partners over concerns related to forced labour.
President Trump thereby temporarily replaced tariffs that had been introduced after the U.S. Supreme Court invalidated many of his tariffs in February, The Wall Street Journal writes.
Tariffs imposed under Section 301 have a stronger legal foundation than the tariffs struck down by the Supreme Court. However, such tariffs also require a lengthy process of investigation and public consultation before they can be implemented.
Last year, Trump and European Commission President Ursula von der Leyen signed an agreement capping US tariffs on EU goods at 15 per cent, but the agreement left the issue of digital regulation unresolved.
Critics argue that the EU is in the process of choosing both Russia and the United States as its enemies. If so, only the communist dictatorship in Beijing remains.
