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At the entrance to one of the Google buildings in the Kremeninka area in the Central Dublin, Ireland, Tuesday, November 29, 2022.
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The European Union states that it supports all options open if it is unable to agree on US President Donald Trump’s 20% blanket tariffs – and this may include going to the powerful Big Tech.
On the eve of tariffs on Wednesday – that has Stunned by world markets out of it Sphere and scale – The President of the European Commission Ursul von der Leyen said that in the development of its reaction, Europe “has a lot of cards: from trade to technology to the size of our market.”
“This force is also built on our willingness to take strong measures. All the tools are on the table,” said von der Leyen repeated on Thursday.
As a block, the EU is the largest US trading partner for goods, services and investments, as well as trade between pairs approximately balanced when accounting for both goods and services.
But, calculating the so -called “retaliation tariffs”, the US administration appears to be contrary looked only at the trade deficit In goods from the United States, considering this gap “tariff” in the USA – and planting large exporters such as Vietnam and Sri Lanka with more than 40%.
For the EU, this meant a tariff by 20% with the US ‘ The deficit of the goods is about 235.6 billion. In recent months, Trump has taken special cavities with the US trade links with the 27-nationwide market charge Treatment of the largest economy in the world is “very bad” and makes it “very difficult to attract (US) products to Europe” while selling there.
One of the fields in which the EU is a major market for US business is services and technology companies, Berenberg Holger Schmieding said on Wednesday.
“While the EU probably won’t be avenged significant, it probably threatens to do so if the negotiations do not produce results until the middle of the year,” he said. While the economist’s basic case is about half of the additional EU import tariffs, which connects to the end of the second quarter, technology companies are avenue through which the EU “can hit the US hard,” Schmiding said.
Such measures can take the form of tougher rules on large technologies, or using the tool for the fight against pieces (ACI) to delay the issuance of business licenses for US firms, limit access to government contracts, restrict intellectual property rights or prohibit investment in the EU, Carsten Brzeski reports.
Specific goals may include app stores, cell phones, cloud services and other areas such as where the data is stored, he said.
With a few domestic technological giants, Europe has a huge appetite for products and services Apple. Google. Amazon. Meta. Microsoft. Intel and linkedIn. Many have regional headquarters in the Irish capital Dublin, originally attracted Low tax rate on corporation – Along with great names in the American pharmaceutical and financial industries.
The EU has already taken steps to crack large technologies. Block Law on Digital Markets (DMA)For example, it is aimed at solving the market power of large so -called “goalkeeper” such as Google, Apple, Meta, Amazon and Microsoft.
Last month, the European Commission – which is the EU executive body – Accused of Google Parent Company Alphabet with DMA violation and issued Apple with recommendations Demanding the iPhone manufacturer has done more to comply with the law. Earlier, Trump referred to EU normative action against technological giants in America as a reason to hit the tariff block. In February, he threatened the block to combat “foreign extortion” of US technology firms through digital taxes and fines.
US technology giants will meanwhile fight the Trump’s Policy Policy Policy Policy Cef Many rely on components and assembly lines in Asia. Apple The shares have suffered its terrible loss since 2020 on Thursday, decreasing by more than 9%, against the background of widespread technology sales.
Dan Ius, Head of Technology Research Department at the Wedbush Securities, said in the note earlier this week that US technology had faced frozen budgets and levels of uncertainty of the era, and may not even issue recommendations in the first quarter profit season.
Will hurt European consumers
However, Brzeski Ing also noted that the adoption of countermers within the framework will require the approval of 15 of the 27 EU members, it will take about eight weeks for implementation and may satisfy other technical obstacles.
He also stressed that following the American digital services, the EU will be a “nuclear version”.
“Not only because it would be unprecedented, but also because it is likely to cause a strong retaliation in the US, as well as harm European clients, as there are now very few internal alternatives to the US digital services,” he said CNBC.
“To a certain extent, the EU, oriented on digital services, will really be a revealing image that Trump has just announced: it will be a measure of damage to trading partner, but at the cost of internal consumers.”
Andrew Keninghem, the chief economist of the European Capital Economy, said on Friday, while while EU policies are likely to consider taxes on services or using ACI, he ultimately expects the EU’s reaction “quite measured”.
“The EU will seek to minimize the risks of escalation and maintain what is left of trade relations in the US for a longer term. Politicians also remember the negotiations on protection and security,” he said.
“So, while EU leaders quickly criticized tariffs, they also made it clear that they were open for negotiations.”
– Ryan Brown in CNBC contributed to this story.
