France is urging the European Union to take action against American tech giants in response to U.S. President Donald Trump’s tariffs, potentially widening the ongoing trade war in the crucial services sector. As the largest trading partner of the U.S., the EU is pledging to respond to Trump’s 20% tariff on the bloc’s exports.
French government spokesperson, Sophie Prima, mentioned that while the specific measures and targeted products are still under discussion among EU members, a focus on digital services—which currently remain untaxed—could be considered.
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This move to integrate the American Big Tech into the transatlantic trade conflict could intensify existing tensions. Previously, French President Emmanuel Macron highlighted that although the U.S. has a trade deficit in goods with the EU, it holds a significant surplus in services.
In 2019, France clashed with Trump by taxing digital services, impacting giants like Alphabet’s Google and Meta. The issue has historically split the EU, with some countries supporting France’s stance while others, like Germany, oppose it. The complexity arises as tax decisions would require unanimity among all 27 EU members, which has been a challenging feat.
Prima indicated a European response targeting services could be ready by the end of April. “We have equipped ourselves with new tools in Europe,” she stated, referring to mechanisms designed to deter coercive measures.
