The Trump administration has warned it could retaliate against European companies if the European Union continues pushing digital regulations and taxes that mainly affect US tech firms.
In a statement on Tuesday, the US Trade Representative (USTR) said the US may use “every tool at its disposal” if the EU keeps what it calls discriminatory measures against American service providers. That could include new fees, restrictions, or trade actions under a Section 301 investigation.
The USTR specifically named several major European companies that could be targeted, including Accenture, Siemens, Spotify, SAP, DHL, Capgemini, Publicis, Amadeus, and Mistral AI, arguing they have benefited from broad access to the US market for years.
The dispute centers on digital taxes and tech regulation. While the EU does not have a bloc-wide digital services tax, countries such as France, Italy, Spain, Austria, and the UK have introduced their own levies, mainly affecting US companies like Google, Meta, Amazon, Apple, and X.
US officials argue these policies slow innovation and unfairly target American firms. President Trump has repeatedly called digital taxes non-tariff trade barriers and has already threatened tariffs against countries that impose them. Canada recently backed down from a similar tax after US pressure.
The EU has defended its approach, saying its rules apply fairly to all companies and are designed to protect competition and digital sovereignty. EU trade chief Maros Sefcovic said talks with US officials are ongoing, but Washington claims its concerns have been ignored for years.
The warning raises tensions at a sensitive moment, as the US and EU are still negotiating broader trade issues, including tariffs and global tax rules. The USTR also cautioned that other countries considering EU-style digital taxes could face similar US retaliation.
