EU Trade Ministers Ready to Counter Trump’s Tariffs with Digital Tax Measures

European Union trade ministers have declared their readiness to develop a full range of countermeasures, including potential taxes on digital companies, in response to the sweeping tariffs imposed by U.S. President Donald Trump. “While the EU remains open and prefers negotiations, we will not wait indefinitely,” stated EU Trade Commissioner Maros Sefcovic after talks with member state counterparts in Luxembourg on Monday (April 7, 2025). The move by Trump to impose a 20% tariff on EU products as part of his ‘America First’ agenda has sparked fears of a global trade war, causing financial markets to plummet. Although the EU has expressed its willingness to engage in talks, officials noted that the union would not hesitate to respond if reconciliation efforts fail. Member states “want to give the U.S. time to reconsider the entire situation, as the American market lost $5 billion in just a few days, which is not a good solution for the American economy,” said Michal Baranowski, Poland’s Deputy Minister for Economic Development and Technology, who chaired the meeting. Germany’s Economy Minister Robert Habeck, also serving as acting vice-chancellor, emphasized earlier the need to examine more closely the EU’s anti-coercion instrument, the union’s strongest retaliatory tool. This mechanism could pave the way for levies targeting digital giants, many of which are headquartered in the U.S. Speaking earlier in Brussels, European Commission President Ursula von der Leyen told reporters that the EU would establish a special import monitoring team to track the effects of the tariffs. She said the aim would be to protect against indirect impacts through trade diversion. Von der Leyen reiterated the EU’s stance of being willing to negotiate but prepared to retaliate if necessary. She added that the EU would seek to strengthen trade relations with other global partners, focusing on the 83% of global trade beyond the U.S. The EU will set up a dedicated import monitoring group to watch for possible trade diversions resulting from U.S. tariffs while continuing negotiations with the Trump administration. Von der Leyen described this as a pivotal moment for the United States but assured that the EU is ready to negotiate with the U.S.