The European Union is gearing up to use its strongest trade tools, including potential taxes on U.S. tech giants, if trade talks with U.S. President Donald Trump collapse, EU President Ursula von der Leyen told the Financial Times on Thursday.
Speaking about the possibility of a 90-day tariff pause proposed by Trump, Von der Leyen emphasized that the EU would push for a fair and balanced deal with the U.S. However, she cautioned that the bloc is ready to escalate the transatlantic trade conflict into the services sector if negotiations falter. This could involve imposing a tax on digital ad revenues, a move that would directly impact major U.S. tech firms like Meta (META.O) and Alphabet’s Google (GOOGL.O).
Von der Leyen described Trump’s trade policies as a “complete inflection point in global trade,” signaling a permanent shift in international relations. “It’s a turning point with the United States, no doubt about it,” she said. “The old status quo is gone for good.”
She revealed that earlier attempts to engage the U.S. in talks were delayed until Trump’s April 2 announcement, which slapped a 20% tariff on EU goods. Now, with the threat of a broader trade war looming, Von der Leyen stressed that the EU would not let Chinese goods, rerouted due to U.S. tariffs, overwhelm European markets. Brussels plans to roll out safeguards, backed by a new monitoring system, to block any surge in Chinese imports.
The comments came as Von der Leyen hosted Iceland’s Prime Minister Kristrun Frostadottir in Brussels on April 9, underscoring her focus on both European unity and global trade challenges.