Calls are mounting for the European Union to fire its “trade bazooka” at Washington after US President Donald Trump threatened tariffs and export restrictions on countries applying digital laws and taxes to American firms.
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In a late-night post on social media, Trump vowed to slap “substantial additional tariffs” and restrict the export of “technology and chips” to countries enforcing “digital taxes, legislation, rules or regulations”.
While he did not name Europe directly, the American leader has previously railed against the bloc’s digital services and digital markets acts, aimed at protecting online users and thwarting big tech monopolies.
Earlier on Monday, Reuters said the United States was considering imposing sanctions in the form of visa restrictions on officials from the EU or its member states responsible for digital laws.
The salvo comes just days after the EU and US published details of a trade deal agreed in July. According to media reports, Washington pressed Brussels for a watering down of its digital laws as part of that agreement, but the European side held firm.
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