Trump is putting pressure on Europe with tariff threats – the EU remains calm!

Trump is putting pressure on Europe with tariff threats – the EU remains calm!

On August 26, 2025, US President Donald Trump again issued tariff threats against European countries, particularly those that have imposed digital taxes on American technology companies. However, the European Union appears unimpressed by the threats. A spokesman for the European Commission made it clear that the EU was not prepared to let Trump dictate which rules should apply to digital platforms. This comes in the context of recent agreements reached to resolve a long-standing trade dispute that set a 15 percent tariff cap on almost all products, as Vienna.at reports.

Trump has made it clear that he will threaten countries that attack American technology companies with additional tariffs on exports to the United States. This particularly includes countries such as France, Italy and Austria, which have already introduced digital taxes on sales from companies such as Google and Apple. Trump sees these taxes as discriminatory and a threat to US companies. In addition to the tariffs, he also announced export restrictions on technology and computer chips, further inflaming tensions between the US and Europe. The US government is also calling for changes to the EU's strict digital laws to combat misinformation, while the EU stresses the need for these laws to ensure fair competition and protection for children, as well as the integrity of democratic elections.

EU-wide digital tax and its implications

An EU-wide digital tax regulation has still not been decided, although it has been discussed for years. According to n-tv, the EU is planning to respond to trade tensions with the USA with a digital tax aimed at the sales of large tech companies. This tax could raise around 37.5 billion euros in 2026, as estimated by the Center for European Politics (CEPS). Most affected digital services include software licenses, subscriptions and advertising space on social networks.

The planned tax rate is around five percent on these companies' sales, while traditional companies pay an average of 23 percent. This unequal taxation remains a central issue in talks between the EU and the US. Political support for the digital tax is increasing in Germany, led by the Greens and the Left, while around 40 percent of citizens support higher taxation of tech companies.

Challenges and possible risks

However, the introduction of the digital tax could pose some challenges. An agreement from all 27 EU member states is required, which is made difficult by opposition from countries such as Ireland, Denmark and Sweden. The risks include increased costs that could be passed on to consumers and businesses, as well as possible strains on digital infrastructure. A negative reaction from the USA could also lead to an escalation of the trade conflict. In the alternatives to the digital tax discussed so far, a targeted taxation of the advertising revenue of tech companies is also being considered.

The negotiations and measures surrounding the digital tax are therefore in the context of a complicated transatlantic trade conflict. With relations already strained, it remains to be seen how both the EU and the US will respond to their partners' respective demands and threats. As the EU continues its efforts to fairly regulate the digital economy, Trump is forced to draw conclusions with regard to American interests. This could have far-reaching consequences on both a political and economic level, as analyzed by Futurhinos.