Donald Trump has threatened to impose “substantial” tariffs upon the European Union after the bloc announced it would be fining Google $1bn for breaches of online competition laws.
It is the first major action against the tech giant under the EU's Digital Markets Act (DMA), which is aimed to rein in Big Tech, after the EU found that Google had favoured its own apps and services over those of their ivals.
The US president accused the EU of taking “direct aim at GREAT American companies” after previous fines issued against Apple, Met and Amazon.
Mr Trump wrote on Truth Social: “The European Union will pay a very big price for this illegal and highly unethical conduct, which I have consistently warned them about.
“The penalties will be entirely reversed and, we anticipate, a substantial TARIFF to be placed on them at the earliest possible moment.”
The European Commission has issued two fines following two breaches of the DMA, which include a €460m penalty after Google favoured its own services for helping people book flights and hotels over competitors in search results.
This has been combined with a second €430m fine due to its Play Store rules, only showed offers available in Google’s own marketplace and failed to show other cheaper options.
Google have criticised the decision, arguing the EU's requirements could damage services which are frequently used by millions of European customers, including instant pricing and direct availability on flights.
The US president announced plans on Thursday to hit dozens of countries with renewed tariffs, imposing taxes of 10 percent to 12.5 percent on imports from 60 countries, including the UK.
The fresh tariffs came just hours before temporary 10% levies, which Britain was already facing, expired.
They were introduced after the Supreme Court overturned Mr Trump’s previous import tax regime in February.
He is now seeking a more durable system using a 1974 trade law.
The US administration says the levies are being slapped on 60 economies “for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour”.
Tariffs are paid by companies in the US which import foreign products and usually move to pass along the cost by charging consumers higher prices.
Americans are already frustrated by the high cost of living, so the administration is taking a risk in rolling out new tariffs ahead of the critical mid-term elections in November.
The UK exports more to the US than to any other single country.
In 2024, UK exports to the US were worth £66 billion, 17% of all UK goods exports.
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