EU eyes taxes on Meta, Google as leverage against Trump’s tariffs

New Delhi: The European Union is ready to unleash its strongest trade tools and could impose tariffs on American digital giants like Meta and Google if talks with US President Donald Trump break down, EU President Ursula von der Leyen told the Financial Times.

The move comes as Trump’s 20% tariffs on EU goods, announced on April 2, threaten to disrupt transatlantic trade, prompting the EU to pause its retaliatory measures for 90 days to seek a “balanced” deal.

In an interview with the Financial Times, von der Leyen signalled that the EU is prepared to target US tech firms’ digital advertising revenues—a core income stream for Meta and Google—if talks with Trump’s administration collapsed. “We’re developing retaliatory measures,” she said, suggesting levies on services as a counter to Trump’s tariffs, which include 25% duties on EU cars and metals. The EU’s strategy aims to exploit America’s trade surplus in services, where US tech dominates, to pressure Washington.

On the other hand, last month, the Government of India scrapped the 6% Equalisation Levy—also known as the digital tax—on online advertisements. Originally introduced under the Finance Act of 2016, the levy applied to services such as digital ad space and related online advertising services. The move was seen as a gesture of goodwill toward the United States, ahead of the 26% retaliatory tariff on Indian imports announced by President Donald Trump on April 2, 2025.