Multinational tech companies face potential service-related taxes from the EU as they prepare a list of targeted businesses for possible trade actions against the United States.
In response to escalating trade tensions, the European Union (EU) is preparing a third package of countermeasures against tariffs imposed by former US President Donald Trump. This new package expands beyond goods, which have already been targeted in earlier retaliations, to include sectors like Big Tech and other services[1][2][4].
The EU's potential tariffs on US services would impact trade in services and procurement, though exact tariff rates for these services are not yet public. The European Commission is actively working on this third package as negotiations continue[1][4].
The ongoing EU-US trade talks aim to avert a looming trade war and reduce the threat of tariffs up to 30% on EU goods, as recently announced by Mr Trump. The EU is pushing to negotiate an agreement that could see tariffs limited to between 10% and 15%, but unresolved issues remain, particularly involving key sectors such as automotive, agri-food, pharmaceuticals, and semiconductors[2][5].
EU Trade Commissioner Maroš Šefčovič is actively engaged in Washington, trying to secure a deal before the critical deadline of August 1, 2025. However, Brussels is also signaling it will activate its third round of countermeasures on services and export controls if no agreement is reached[1][2].
The sectors of concern in these negotiations include services, pharmaceuticals, semiconductors, automotive, and agri-food. The EU is particularly keen on guaranteeing an exemption from future sectoral tariffs promised by Mr Trump on pharmaceuticals and semiconductors[1][2].
The bloc could use its enforcement regulation to draw up the services list, requiring approval from member states. The EU accounted for about 48% of all Irish services imports and 13% of exports in 2023[3].
Commission president Ursula von der Leyen has threatened to impose a levy on the advertising revenues of digital services, and the EU is considering a third step in escalation, which is a levy on digital services[2].
The latest package includes the first export controls, adding fees to the export of steel scrap and some chemicals, as part of the EU's response to US President Donald Trump's tariffs[1].
Bernd Lange, the chair of the European Parliament's trade committee, has welcomed the move, stating that the US has a surplus in services with the EU, making it more vulnerable to retaliation in that sector[1].
These developments reflect escalated tensions but also ongoing diplomatic efforts to prevent a full-scale trade war between the EU and US[1][2][4][5].
| Aspect | Details | |---------------------------|---------------------------------------------------------------------------------------------| | EU retaliatory tariffs | Planned third package to include tariffs on US services (e.g., Big Tech) and export controls | | Sectors of concern | Services, pharmaceuticals, semiconductors, automotive, agri-food | | Tariff levels proposed | Negotiation range between 10-15%, with threat of up to 30% tariffs by the US | | Current negotiation status | Ongoing talks aiming to reach a deal before August 1, 2025, with no agreement yet | | EU stance | Preparing for escalation with tariffs on services and export controls if talks fail |
References: [1] BBC News, "EU prepares to hit US with tariffs on services and export controls," July 21, 2025. [2] Reuters, "EU prepares countermeasures as US-EU trade talks face deadline," July 22, 2025. [3] Eurostat, "Trade in Services Statistics," 2023. [4] Politico, "EU readies third wave of US tariffs," July 20, 2025. [5] Financial Times, "Trade talks between EU and US face deadline," July 23, 2025.
The European Union (EU) is planning to impose tariffs on US services, such as Big Tech, as part of its third package of countermeasures against tariffs imposed by former US President Donald Trump. The EU is actively working on this third package, with negotiations continuing, and the potential tariffs could impact trade in services and procurement.
In addition to the tariffs on goods, the EU is also considering a levy on digital services, such as advertising revenues, to respond to increasing trade tensions with the US. These developments reflect escalated tensions but also ongoing diplomatic efforts to prevent a full-scale trade war between the EU and US.
