In a significant shift in transatlantic trade relations, President Donald Trump has announced a 90-day suspension of most tariffs, reducing them to a baseline of 10 percent. While aimed at easing tensions and reopening negotiations with key trade partners, the move was met in Brussels with cautious resolve. Meanwhile, tariffs on Chinese imports were raised to 125 percent, reinforcing the administration’s combative stance toward Beijing.
In response, the European Union has opted to freeze its planned retaliatory measures during the 90-day window, positioning itself as a responsible but unyielding actor in the escalating trade drama.
At the heart of the tensions lies a deeper policy divide over the regulation and taxation of digital giants, many of which are headquartered in the United States. For years, the EU has been developing a comprehensive set of digital rules to ensure fair competition, safeguard user privacy, and require tech companies to pay taxes in the countries where they generate profits.
Brussels has signaled that these digital policies are not up for negotiation, even in the face of mounting U.S. pressure. Henna Virkkunen, European Commission Vice-President responsible for tech sovereignty, made the EU’s position clear. “We are very committed to our rules when it comes to the digital world,” she said. “We want to make sure that our digital environment in the European Union is fair, safe, and democratic.”
The EU’s push for a digital tax has long frustrated U.S. officials, who view it as a threat to their economic interests. But European leaders argue that the tax is a matter of fairness and sovereignty, not protectionism.
Sandro Gozi, Member of the European Parliament and Secretary General of the European Democratic Party, reiterated that the EU’s stance would not waver under pressure. “Our EU Digital Rules are non-negotiable and, if necessary, we are ready for a tax on Big Tech,” he said.
The current suspension of tariffs by the Trump administration has opened a narrow window for diplomacy, but Brussels is proceeding with caution. While both sides have expressed a willingness to talk, there remains little indication that a major breakthrough is imminent.
There is a growing sentiment in Europe that the days of automatic alignment with Washington on trade and regulation are over. The EU’s digital agenda is increasingly seen as a core pillar of its political and economic independence, and a symbol of its ability to stand its ground in the face of global pressure.
As talks resume, Brussels is making its message clear: it won’t be bullied into abandoning its digital rules, but it remains open to a negotiated path forward. The EU will defend its values and regulatory integrity, and if necessary, it’s ready to act alone.
