EU Threatens Retaliation Against US Tech Companies
German Chancellor Friedrich Merz has warned that the European Union may retaliate against US technology companies if trade tensions with Donald Trump’s administration continue to escalate. Speaking at the WDR Europaforum conference in Berlin, Merz emphasized the need for the EU to protect its interests, particularly in light of the US surplus in services trade with the bloc.
Merz highlighted that the EU currently provides significant protection to US tech companies, including favorable tax treatment. “At the moment, we strongly protect US tech companies — also on taxes,” he said. The chancellor’s comments suggest that this protection may be reconsidered if trade tensions persist.
While Merz expressed a desire to reduce tariffs and ease tensions with the White House, he made it clear that the EU would not hesitate to take protective measures if necessary. The potential for retaliation against US tech companies marks a significant escalation in the ongoing trade conflict between the two economic powers.
The situation remains fluid, with both sides holding strong positions. The EU’s next steps will depend on the trajectory of trade negotiations with the US administration.
