US President Donald Trump’s warning that the EU could confront additional tariffs and a formal trade investigation following Brussels’ latest antitrust fine against technology giant Google has posed fresh challenges for both sides, just as the EU has begun implementing commitments under the trade agreement reached with the US earlier this month.
After the European Commission (EC) imposed an 890 million EUR fine on Google for breaching the Digital Markets Act (DMA), President Trump declared that the EU would pay a “very big price” for what he characterised as an unlawful action.
Although this is the first time Google has been fined under the DMA, a landmark piece of EU legislation designed to curtail the market power of dominant online platforms, President Trump has repeatedly criticised the bloc over the legislation.
The US President has warned that he would impose 100% tariffs on imports from European countries that levy digital services taxes on American technology companies, while US lawmakers are pressing for a trade investigation into the EU’s technology regulations.
President Trump announced that he would initiate an investigation under Section 301 and was considering imposing substantial tariffs on the EU at the earliest opportunity. Section 301 of the US Trade Act of 1974 authorises Washington to investigate foreign trade practices it considers discriminatory and to take retaliatory measures, including raising import tariffs.
The latest dispute between the EU and the US has impaired dialogue between the two sides and generated new risks for transatlantic trade. One year after the EU and the US concluded their trade agreement, economic ties continue to encounter obstacles, despite rising trade volumes and progress in implementing investment commitments.
Under the tariff agreement, the US imposes a 15% tariff on imports from the EU, while the EU eliminates tariffs on most US industrial goods. The EU has also committed to investing 520 billion EUR in the US and procuring 700 billion USD worth of US energy by 2028.
The agreement has served to stabilise trade relations between the two sides. According to EC statistics, trade in goods and services between the EU and the US rose by 4.5% in 2025 to approximately 1.8 trillion EUR, despite the introduction of tariff measures.
However, implementation of the agreement has proven challenging, with multiple issues remaining unresolved. The two sides continue to negotiate tariff exemptions for certain EU exports, as well as duties on steel and aluminium.
The EU only recently commenced implementing the agreement after months of delay linked to President Trump’s statements on Greenland and a ruling by the US Supreme Court. Meanwhile, the US administration is considering new tariff measures related to forced labour, industrial overcapacity, and certain pharmaceutical products.
The US recently announced new tariffs ranging from 10% to 12.5% on imports from dozens of its major trading partners. As the US’s largest single trading partner, the EU is subject to a new tariff of 12.5%. This rate is deemed consistent with US commitments under the bilateral trade agreement and remains below the 15% ceiling agreed by President Donald Trump and EC President Ursula von der Leyen in 2025.
Nevertheless, tensions between the US and the EU have intensified following the fine imposed on Google. The EC has stated that it is prepared to engage proactively with Washington to ease the dispute, while insisting that it will continue to safeguard its regulatory autonomy.
Meanwhile, US Trade Representative Jamieson Greer asserted that Washington is seeking to address concerns over the EU’s DMA through a responsible and constructive dialogue. Despite maintaining firm positions, both sides have signalled a willingness to engage in talks in an effort to alleviate trade tensions across the Atlantic.
