European Commission President Ursula von der Leyen has warned that the European Union is preparing to impose a tax on digital advertising revenue as part of its trade war with the United States.
The Financial Times reported that "the European Commission president warned of her readiness to expand the transatlantic trade war to include the services sector if negotiations (with the United States) fail, including a potential tax on digital advertising revenues that would impact tech groups such as Meta, Google, and Facebook."
Von der Leyen explained that "there is a wide range of countermeasures if the results of negotiations with the United States are not satisfactory."
She added that the European Union "will not allow" the diversion of Chinese goods affected by US tariffs to Europe, noting that Brussels "will take preventive measures" if the new monitoring system detects an increase in Chinese imports.
She noted that US President Donald Trump's trade policy has radically altered global trade relations, prompting the European Union to negotiate with countries such as Malaysia, Thailand, the Philippines, Indonesia, and the UAE.
Last week, Trump announced the imposition of "reciprocal" tariffs on imports from other countries. The base rate will be 10%, while most countries will face higher rates depending on the US trade deficit with each country to balance the trade deficit. The tariffs on European goods are 20%, while 25% tariffs on steel and aluminum have been in place since March.
Von der Leyen affirmed the European Union's readiness to negotiate with the United States over the tariffs, and that it was not too late to reach an agreement. However, she pledged to respond in kind.
At a meeting last Wednesday, permanent representatives of EU member states agreed to impose additional duties effective April 15, without revealing further details.
Media reports indicate that the European Union's new measures against the United States will impose tariffs ranging from 10% to 25% on agricultural products such as tobacco and poultry, as well as motorcycles, steel, and aluminum, potentially impacting US exports to the EU worth €21 billion.