Trump threatens EU with tariffs and Section 301 probe over 'illegal' 890 million euro Google fine

The EU penalty

The European Commission fined Google a total of 890 million euros on Thursday for breaching the Digital Markets Act, the bloc's rulebook designed to curb the power of large technology platforms. The penalty is split into two parts: 460 million euros for giving preferential treatment to its own services in Google Search results, including shopping, hotels, transport and other verticals, and 430 million euros for restricting app developers on the Google Play Store from steering consumers to alternative, often cheaper, channels.

The best products should succeed because they are better, not because they are owned by the company that runs the search engine. And European consumers have the right to be told by app developers where to sign up for the best offers, even when the app-store owner does not get a cut.

The Commission described the move as the largest sanction it has ever imposed under the DMA. Henna Virkkunen, the Commission vice-president responsible for digital policy, called it a 'very important decision' aimed at ensuring a level playing field for all online businesses.

Trump's response

Speaking on his Truth Social platform on Friday, Donald Trump condemned the fine as 'illegal and very unethical' and announced that Washington would launch a Section 301 investigation, a tool under the Trade Act of 1974 that allows US authorities to probe foreign practices they deem discriminatory and respond with tariffs.

We will immediately initiate a Section 301 Investigation into the practice of RIPPING OFF American Companies.

The US president threatened to impose a 'substantial tariff' on the EU 'as soon as possible', adding that the bloc would 'pay a very big price'. In a separate post he wrote that the United States is not a 'piggy bank' for Europe and would not allow itself to be treated as one.

What happens next

Google now has 60 days to comply with the Commission's decision. A European official cited by AFP noted that the fines currently represent only 0.22 percent of Google's global turnover, but warned that the amount could rise if the company fails to comply. The Commission said it could impose 'periodic penalty payments' in the event of continued non-conformance.

The 301 investigation announced by Trump marks an escalation in transatlantic trade tension. The same day, the administration imposed 10 percent tariffs on EU member states and 59 other countries, justifying the move on the grounds that those nations had failed to eliminate forced-labour products from their supply chains.

European reactions

Brussels appeared unmoved by the threat of retaliation. EU competition commissioner Teresa Ribera stated that the bloc's duty was to ensure that rules adopted by its sovereign institutions are fully respected. EU foreign policy chief Kaja Kallas pushed back on the forced-labour tariffs, arguing they were not justified given European labour standards.

You cannot say that about the European Union. Comparing our labour legislation and that in the United States, you can see that we have paid leave, very good working conditions for our employees, so it is not really justified.

The standoff pits the EU's Digital Markets Act enforcement against the US executive's willingness to use trade law as a countermeasure, setting the stage for a broader regulatory and commercial dispute between the two economies.