Background of the Conflict
The trade conflict between the EU and the USA has recently escalated. Von der Leyen described the situation as a turning point in transatlantic relations and emphasized that a return to the status quo is not possible. The EU recently announced a temporary suspension of planned counter-tariffs on US products for 90 days after the USA had also taken similar measures.
Possible Duties
Von der Leyen stated to the Financial Times that various retaliatory measures could be taken if negotiations with the USA fail. One of these measures could be a levy on advertising revenues from digital services. This would mean that companies like Google and Meta would be taxed directly, which could significantly affect their business models.
Warnings Against Excessive Measures
Despite these considerations, there are concerns within the EU regarding overly harsh actions against US tech companies. Acting Federal Finance Minister Jörg Kukies warned against hasty actions: “We simply have to be careful with the digital companies because we have no real alternatives.” He emphasized the need for careful calibration in possible countermeasures.
Market Reactions
The stock prices of Alphabet (Google) and Meta are already showing negative reactions to these developments. In pre-market trading, Alphabet recorded a decline of 0.21%, while Meta fell by 0.08%. These market movements reflect the growing risk for investors in light of possible new regulations.
Overall, everything indicates that relations between Europe and America may further escalate. The decision on possible duties will not only have political dimensions but also direct economic consequences for large technology companies and their shareholders.