Tuesday, 02 January 2024 12:17 GMT

Trump Warns EU of Tariffs If Google, Apple Fines Not Rescinded


(MENAFN) US President Donald Trump has warned the European Union (EU) of a potential investigation that could trigger a fresh round of tariffs unless the bloc rescinds fines levied against American tech giants Google and Apple.

The threat follows a White House dinner with tech executives, including Google CEO Sundar Pichai and Apple CEO Tim Cook, where Trump criticized the EU’s decision to impose hefty penalties on both companies.

"Europe today 'hit' another great American company, Google, with a $3.5 Billion Dollar fine, effectively taking money that would otherwise go to American Investments and Jobs. This is on top of the many other Fines and Taxes that have been issued against Google and other American Tech Companies, in particular. Very unfair," Trump posted on his Truth Social account.
"My Administration will NOT allow these discriminatory actions to stand. Apple, as an example, was forced to pay $17 Billion Dollars in a Fine that, in my opinion, should not have been charged — They should get their money back!"

Trump indicated he would initiate an investigation under Section 301 of the Trade Act of 1974 if the fines are not revoked, cautioning that this could lead to tariffs or further import restrictions on the EU. He further stated that such action would effectively nullify the unjust penalties imposed on American companies.

The Section 301 provision has previously been invoked by Trump during his first term, resulting in investigations that led to tariffs on both the EU and China, according to records from the U.S. Congress.

It remains unclear whether such actions could jeopardize a trade deal struck between the U.S. and the EU in July, a pact that the White House had described as "fundamentally rebalancing the economic relationship between the world’s two largest economies."

The EU’s recent $3.5 billion fine against Google follows findings that the company breached competition laws by prioritizing its own digital advertising services over competitors. The European Commission has ordered Google to cease such preferential practices and to address any conflicts of interest in its advertising supply chain within 60 days.

While Trump specifically referenced a $17 billion fine against Apple, the source of this amount is unclear. In 2024, Apple lost a case at the EU’s top court and was ordered to pay $14.34 billion in back taxes owed to Ireland. Google faced a $2.7 billion antitrust penalty for its own violations. Additionally, Apple was recently fined over $1.8 billion for alleged anti-competitive practices related to its App Store.

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