Trump threatens EU tariffs after Brussels fines Google $1bn
Trade tensions escalate as Washington challenges European regulatory framework, risking recent bilateral trade agreement
US President Donald Trump has threatened the European Union with steep tariffs and a new trade investigation following a $1 billion fine imposed on Google by the European Commission. The penalty, issued on Thursday, found that Google breached the bloc’s Digital Markets Act by favouring its own services in search results and restricting app developers from directing users elsewhere.
Trump described the penalty as "highly unethical" and warned the bloc would pay a "very big price" in a social media post on Friday. He stated that the United States "is not a ‘PIGGYBANK’ for Europe" and claimed the discriminatory practices began during the previous administration, asserting they would not continue under his leadership.
The European Commission split the penalty roughly in half between the two breaches: favouring its own services and blocking app developers. Regulators gave Google 60 days to change its practices or face periodic fines of up to 5 percent of its average daily turnover. Teresa Ribera, the commission’s executive vice president overseeing competition policy, called the action "decisive yet balanced", arguing that products should succeed on merit rather than ownership.
Google executive Kent Walker described the ruling as "product degradation" driven by a small number of complainants, insisting that regulation should improve products rather than weaken them. The EU has fined Google repeatedly since 2017, including a $4.5 billion penalty over its Android operating system upheld on appeal this month and a $3.4 billion fine last year targeting its advertising business.
The fine adds renewed strain to US-EU relations at a moment when trade tensions had appeared to ease. Jamieson Greer, the US trade representative, warned that Brussels’s approach risks unravelling a trade deal struck in Turnberry, Scotland, last year that capped US tariffs on European goods. Trump threatened to launch a probe under Section 301, a US tool for probing unfair trade practices, though the move could take months to produce results.
EU officials have pushed back against the criticism, insisting they answer to their own laws rather than outside pressure. While the Section 301 probe may take time to conclude, the threat of immediate tariffs remains a significant point of friction in transatlantic trade relations.
