Trump threatens EU with tariffs and Section 301 probe over €890 million Google fine

The EU fine

On Thursday, the European Commission fined Google a total of €890 million ($1 billion) for breaching the Digital Markets Act, the bloc's landmark law policing dominant online platforms. The penalty was split into two decisions: €460 million for favoring its own shopping, hotel, transport and sports services in search results over independent comparison sites like Expedia or Idealo, and €430 million for restrictions that stopped app developers from steering users toward cheaper offers outside the Google Play store. It is the highest fine imposed under the DMA to date, surpassing the €500 million penalty Apple received in 2024. EU officials noted the amount represents just 0.22% of Google's annual turnover. Under the DMA, the Commission can fine gatekeepers up to 10% of global annual turnover for breaches, and up to 20% for repeat offenses.

Trump's retaliation threat

Within hours, US President Donald Trump took to Truth Social to condemn the move. He called the fine "illegal and highly unethical" and said the EU "will pay a very big price."

The United States of America is not a 'PIGGYBANK' for Europe, nor will we allow it to be.

Trump announced he would "immediately initiate a 301 Investigation" into what he described as the EU's practice of "ROBBING" American companies. He added that he anticipated "a substantial TARIFF to be placed on them at the earliest possible moment." The president also claimed the penalties would be "entirely reversed." In his post, Trump listed other billion-dollar fines the EU has levied against US tech firms including Apple, Meta and Amazon, accusing Brussels of a raid on American taxpayers.

Section 301 investigation

The probe falls under Section 301 of the Trade Act of 1974, which allows Washington to investigate foreign practices it deems discriminatory and retaliate with tariffs. The US Trade Representative's office, led by Jamieson Greer, will conduct the inquiry. The process typically takes months: the accused party and other stakeholders can submit comments, after which the USTR issues findings and recommends countermeasures. Following a further consultation period of at least one month, the president can impose tariffs.

Greer had already criticized the EU decision on Thursday, saying it posed "a real risk to the continuation of transatlantic stability with respect to trade." He argued that the bloc's enforcement actions undermine "constructive dialogue" and create massive uncertainty for US exports.

Trade deal at risk

Trump's threat comes just a day after the White House imposed new tariffs of 10% to 12.5% on 60 trading partners, including the EU, using the same Section 301 authority. Those duties took effect on Friday. The escalation puts the US-EU trade deal, negotiated last fall and known as the Turnberry agreement, under strain. EU officials have previously insisted that any new tariffs would breach that deal. The Trump administration has been rebuilding its tariff wall after the US Supreme Court struck down many of its earlier levies in February.

What I can tell you is we're not going to let Europe control the global regulation of our companies, which generally give a lot of free services to consumers and provide a lot of consumer welfare.

What's next

EU tech chief Henna Virkkunen said Europe would not back down from applying its laws. The European Commission has previously fined Apple, Meta and Amazon under its digital rulebook, and further cases are pending. Trump claimed the practice of targeting US tech firms began at high levels during Joe Biden's first year. The Section 301 investigation is expected to unfold over several months, leaving transatlantic trade relations in a period of heightened uncertainty.