(WASHINGTON, USA) – The United States is preparing to impose substantial tariffs on the European Union after the bloc fined Google a combined total of roughly $1 billion for breaking digital competition rules, with President Donald Trump warning the EU would pay a very high price for targeting American technology companies.
The European Commission announced the penalties on 23 July. It imposed one fine of €460 million (around $502 million or £395 million) and a second fine of €430 million (around $470 million or £370 million) on the Alphabet owned company. The combined total reaches €890 million, equivalent to approximately $972 million or £765 million.
The Commission found that Google failed to comply with the Digital Markets Act, known as the DMA. The first penalty relates to Google favouring its own services within its search engine results. The second covers restrictions placed on companies seeking to direct consumers to alternative and often cheaper purchasing channels on the Google Play store.
Trump responded to the fines in a post on his Truth Social platform. He accused the EU of deliberately attacking large American companies and referenced penalties previously imposed on Apple, Meta and Amazon. He said the European Union would pay a very high price for what he described as illegal and deeply unethical behaviour. Trump added that significant tariffs against the EU should be expected in the near future.
The threatened tariffs mark a sharp escalation in trade tensions between Washington and Brussels. The United States and the European Union maintain one of the world’s largest bilateral trade relationships, with annual goods and services trade valued at more than $1.3 trillion (around £1.02 trillion or €1.19 trillion). New duties on European exports could affect sectors ranging from automobiles and machinery to food and beverages.
Google criticised the European Commission’s decision following the announcement. The company said the EU requirements could negatively affect services used by millions of Europeans. Google has previously argued that its practices benefit consumers and that compliance with the DMA should not force it to degrade user experience.
The dispute adds to a growing list of trade frictions between the two economies. Trump has separately threatened France with tariffs of 100 percent on wine imports. The latest warning extends the pattern of using trade measures as a response to regulatory actions taken against American firms operating in Europe.
The European Commission has defended its enforcement of the Digital Markets Act as a necessary tool to ensure fair competition in digital markets. The legislation aims to prevent large technology platforms from abusing their market position and to give smaller competitors and consumers better access to alternatives.