EU enforcement action undermines ‘constructive dialogue,’ says US trade representative
US President Donald Trump on Friday threatened fresh tariffs and a Section 301 trade investigation against the European Union over its latest antitrust action targeting Google.
WASHINGTON: US President Donald Trump sharply criticized the European Union after its latest enforcement action against American technology companies, warning that the bloc would face significant consequences for what he described as unfair treatment of US businesses.
In a post on his Truth Social platform, Trump claimed the EU would “pay a very big price” for what he called “illegal and highly unethical conduct,” saying he had repeatedly warned European officials about such actions.
Trump announced he would “immediately initiate a Section 301 investigation” into what he alleged was the EU’s practice of unfairly targeting and “robbing” American companies. He added that he expected to impose a “substantial tariff” on the bloc at the earliest opportunity.
“The United States of America is not a ‘piggy bank’ for Europe, nor will we allow it to be,” Trump wrote.
WASHINGTON: The United States has signalled possible retaliatory action against the European Union after Brussels imposed a record €890 million ($1 billion) fine on Google under its Digital Markets Act (DMA).
Under Section 301 of the US Trade Act of 1974, Washington can investigate foreign trade practices it considers unfair or discriminatory and impose tariffs or other trade measures in response.
The European Commission issued two separate penalties against Google on Thursday. The first, worth €460 million, was for allegedly favouring Google’s own shopping, hotel, transport and sports services in search results. The second, amounting to €430 million, targeted the company’s restrictions that prevented app developers from directing users to cheaper offers outside the Google Play Store.
The penalties mark the first enforcement action against Google under the DMA, the EU’s landmark legislation designed to curb anti-competitive practices by major digital platforms.
Reacting to the decision, US Trade Representative Jamieson Greer said the EU’s move undermined “constructive dialogue” between Washington and Brussels and warned it posed a “real risk” to the stability of transatlantic trade relations.
The dispute also threatens to strain the trade agreement reached between the US and the EU last year, under which Washington reduced tariffs on European automobiles in exchange for concessions from the European bloc.
