To counter Trump tariffs, EU could tax Meta, Google if trade talks fail

US big tech companies may be on the line for getting penalised after the European Union threatened to tax groups like Meta and Google if tariff talks with the Trump administration fail.

This comes hours after the bloc announced that it will halt imposing its retaliatory tariffs on the US after President Donald Trump took a u-turn from launching levies immediately.

Talking to Financial Times, European Commission president Ursula von der Leyen said that the bloc would seek a “completely balanced” solution in the 90 days of Trump’s tariff pause.

At the same time, she also warned that the EU is ready to take dramatic steps that will escalate the transatlantic trade war to big tech companies in case those talks fail.

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“While finalising the adoption of the EU countermeasures that saw strong support from our member states, we will put them on hold for 90 days,” von der Leyen said in a statement.

“If negotiations are not satisfactory, our countermeasures will kick in,” the EU Commission chief added.

The countermeasures will include slapping duties on tech groups such as Meta, Google and Facebook.

EU tries to strike a deal with US

von der Leyen said that the other measures that the EU can involve in its retaliatory tariffs plan are to tax the services trade between the US and the EU. “An example is you could put a levy on the advertising revenues of digital services,” she said.

She has openly proposed a mutual elimination of tariffs on industrial goods, but the idea has gained little support in Washington. US officials remain critical, citing concerns over what they see as non-tariff barriers imposed by the EU, including value-added tax rules and strict product regulations.

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She, however, refused to revisit the EU’s “untouchable” digital content and market power regulations, which Trump officials view as an effective tax on US Big Tech firms.

EU trade chief holds talks with US

EU trade chief Maros Sefcovic said later on Thursday that he spoke to his US counterparts, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.

“Another call… as we’re set to suspend EU countermeasures and enter meaningful negotiations. Constant communication and daily updates keep us moving forward,” he said on X.

The EU measures approved Wednesday target more than 20 billion euros’ worth of US products including soybeans, motorcycles and beauty products.

With inputs from agencies