EU-US trade tensions intensify over digital rules, taxes

The European Commission has dismissed claims made by United States President Donald Trump that European Union digital rules discriminate against US tech companies.

Both the EU and the United Kingdom's trade relations with the US face fresh turbulence after Trump threatened new tariffs on countries implementing digital regulations affecting US tech companies.

In a social media post on Monday, Trump stated that he would impose additional tariffs on all countries with digital taxes, legislation or regulations, claiming they were "all designed to harm or discriminate against American technology".

While Trump avoided naming specific countries, his warning appeared aimed at the EU's regulations that aim to rein in companies like Google, Apple and Meta.

Trump said: "As the president of the United States, I will stand up to countries that attack our incredible American tech companies. Unless these discriminatory actions are removed, I, as president of the United States, will impose substantial additional tariffs on that country's exports to the USA, and institute export restrictions on our highly protected technology and chips."

The Trump administration has repeatedly opposed the EU's twin digital regulations: the Digital Markets Act, which aims to limit the dominance of tech giants, and the Digital Services Act, which requires platforms to control harmful content.

The European Commission, the EU's executive arm, defended its position on Tuesday, asserting its regulatory authority over economic activities within the bloc, reported Reuters.

EU officials dismissed Trump's accusations of anti-US bias, emphasizing that the regulations apply equally to all companies operating in EU territory.

A spokesperson for the commission said that claims of social media censorship under EU data laws, including those from Meta CEO Mark Zuckerberg, were "completely wrong and unfounded".

The spokesperson explained that the Digital Services Act merely requires platforms to fully enforce their own policies.

"And when we're talking about this, more than 99 percent of content moderation decisions taken here in the EU online are proactively done by platforms based on their own terms and conditions," they added.

Trump's proposed tariffs threaten to undermine recent US trade agreements with both the UK and European partners.

The US and the EU agreed on a joint statement on a deal last week, capping most US tariffs on EU exports at 15 percent, but it largely avoided mention of digital services.

The UK government must not "water down" its digital services tax and stand firm against Trump's threats, the UK's Liberal Democrats leader Ed Davey was quoted by The Guardian newspaper as saying.