Opinion: EU aims at Washington's pain points in looming tariff war

by Xinhua writer Liao Lei

BRUSSELS, May 1 (Xinhua) -- As Washington continues its aggressive trade measures by levying tariffs on the world with little restraint, the European Union (EU) is stepping up its response -- this time in the digital realm.

Last week, the EU imposed a combined 700 million euros (about 792 million U.S. dollars) fine on U.S. tech giants Apple and Meta under the Digital Markets Act, the first major enforcement action since the Act came into effect.

While EU officials maintained that the penalties were unrelated to the ongoing trade tensions, the timing -- coinciding with EU-U.S. negotiations over tariffs -- suggests otherwise.

Unlike goods trade, services trade -- especially in the digital sector -- has long been America's economic stronghold. Now, by playing the digital card, the EU is hitting Washington where it hurts most. U.S. tech giants earn about 30 percent of their profits in Europe and dominate its cloud computing market. Now, facing a 100-billion-euro trade deficit in services trade, the EU is targeting this key U.S. advantage.

In response to Washington's so-called "reciprocal tariffs," the EU swiftly drafted a retaliation list that could slap tariffs of up to 25 percent on various U.S. products.

Although the EU has delayed the immediate implementation of retaliatory tariffs to give negotiations some space, the bloc has not laid down its arms. EU officials, including European Commission President Ursula von der Leyen, had warned that while the EU was ready to negotiate with Washington, the bloc was also prepared to respond with countermeasures.

Brussels' hardened position did not emerge overnight. It is the product of decades of fraught trade battles with Washington. From the bitter steel tariff dispute of 2002 to the protracted Boeing-Airbus subsidy battle and the 2018 tariffs on European steel and aluminum, Europe has learned the hard way that conciliation only invites further U.S. pressure rather than reciprocity and respect.

For the EU, the economic stakes are considerable. In 2024, the EU exported goods worth 531.6 billion euros to the United States while imports totaled 333.4 billion euros. Industries such as automotive, machinery and agriculture rely heavily on the U.S. market. A disruptive tariff conflict would not only undermine critical economic metrics but also place millions of European jobs at risk.

In response, the EU is accelerating efforts to diversify its trade ties and reduce dependence on the United States. In December 2024, it concluded free trade talks with the South American trade bloc Mercosur, and in March 2025, it held with India the 10th round of negotiations for a free trade agreement. Also in March, European Commissioner for Trade and Economic Security Maros Sefcovic visited China, signaling a commitment to deepening EU-China economic cooperation. The EU is pivoting toward the Global South to broaden its trade horizons.

While Washington increasingly resorts to tariff-centric trade measures and other unilateral means that erode transatlantic trust and undermine the foundations of the global multilateral trading system, the EU appears poised with a calibrated, multi-pronged strategy -- ready to respond decisively when necessary. Enditem