EU Considers Regulating US Big Tech Data Use in Response to Tariffs

Coin WorldSaturday, Apr 5, 2025 6:56 pm ET
1min read

The European Union is contemplating a variety of responses to the recent tariffs imposed by the United States, with a particular emphasis on regulating the data usage of American big tech companies. French Finance Minister Eric Lombard has hinted that the EU is examining a wide array of measures, which could include targeting large digital services that are currently not taxed. This strategy is viewed as a tactical response to the U.S. tariffs, which have raised concerns about a potential trade war.

The EU's potential countermeasures involve utilizing its strength in the services sector, particularly in digital services. The U.S. has a substantial trade deficit with the EU in goods, but the EU's advantage lies in its robust services sector, which includes major tech companies. By regulating the data use of these American tech giants, the EU aims to create a more balanced playing field and reduce the impact of the U.S. tariffs.

A government spokesperson in France has suggested that the EU's response is likely to be announced at the end of the month. This timeline indicates a deliberate and calculated approach by the EU, aiming to avoid escalating tensions while still asserting its position. The EU's strategy is to ensure that any retaliatory measures are proportionate and effective, avoiding a full-blown trade war that could have detrimental effects on both economies.

France's industry minister has also advocated for a firm but measured response to the U.S. tariffs, stressing the need to avoid a damaging trade conflict. The EU's approach is to use its regulatory power over digital services as a countermeasure, targeting areas where the U.S. has a significant presence. This includes potential taxation of online services that are currently not subject to EU regulations.

The EU's response is part of a broader discussion within the bloc about how to address the U.S. tariffs. The EU has stated that "everything is on the table," including the possibility of targeting U.S. big tech companies and taxing more American goods. This comprehensive approach reflects the EU's determination to protect its interests while seeking a balanced resolution to the trade dispute.

In summary, the EU's potential response to the U.S. tariffs involves regulating the data use of American big tech companies, leveraging its strength in the services sector, and ensuring a proportionate and effective retaliation. This strategy aims to mitigate the impact of the U.S. tariffs while avoiding a full-blown trade war, reflecting the EU's commitment to a balanced and measured approach.