Brussels is turning up the heat on Washington, hinting it might hit Silicon Valley where it hurts—right in the ad revenue—if ongoing trade talks break down. European Commission President Ursula von der Leyen announced that the EU is prepared to roll out sweeping retaliatory measures targeting American digital giants like Meta and Google, should negotiations over US tariffs go south.
This high-stakes warning came on the heels of former US President Donald Trump’s recent move to pause additional tariffs for 90 days. Despite the temporary freeze, European exports are still being slapped with a 10% import duty—down from the threatened 20%, but enough to keep tensions simmering.
Speaking to the Financial Times, von der Leyen didn’t mince words. “We’re drawing up countermeasures,” she said, outlining potential actions under the EU’s new anti-coercion mechanism—tools that, for the first time, could strike at services instead of just goods. Among the options on the table? A bloc-wide levy on the ad revenues of American digital platforms.
And that’s not all. Brussels is also eyeing tariffs on US scrap metal and is weighing measures to prevent Chinese exports—diverted by Washington’s whopping 145% tariff—from flooding European markets. It’s clear the EU is bracing for ripple effects.
While von der Leyen stressed the EU still prefers a “balanced” deal during the tariff truce, she made it crystal clear that Brussels won’t be caught flat-footed. “There’s no going back to business as usual,” she said, describing the trade dispute as a “turning point” for global commerce.
Despite the diplomatic overtures, von der Leyen drew a hard line on some issues. She ruled out any negotiation over the EU’s digital market rules, content standards, or value-added tax (VAT)—which Trump and other US officials have previously slammed as discriminatory. Brussels insists the VAT applies equally to local and foreign products.
Though the EU has temporarily shelved its planned retaliatory tariffs on US steel and aluminum, the clock is ticking. Von der Leyen warned the chaos unleashed by the tariff war is already taking its toll. “There are no winners in this,” she said. “Only losers. The cost of uncertainty is already biting.”
Bottom line: unless the US and EU can hash out a deal soon, the world could be staring down a new front in the transatlantic trade battle—this time, fought in the digital trenches.
