Trump threatens EU tariffs and trade probe after Google fine

US President Donald Trump threatened on Friday to impose tariffs on the European Union and open a formal trade investigation after Brussels fined Google under its digital competition rules.

In a post on Truth Social, Trump said the EU would pay a very big price for conduct he described as illegal and unethical. He said he would immediately start a Section 301 investigation into what he called the EU's practice of robbing American companies, and said he expected a substantial tariff on the bloc as soon as possible.

Section 301 of the 1974 Trade Act allows Washington to investigate foreign practices it considers discriminatory and to retaliate with tariffs.

Trump's threat came a day after the White House announced new tariffs of 10 percent to 12.5 percent on 60 trading partners, including the European Union. Those duties took effect Friday after investigations and used the same Section 301 legal basis. Trump has been trying to rebuild his tariff system and the ability to impose duties quickly after the US Supreme Court struck down many of his levies in February.

The European Commission on Thursday fined Google 890 million euros, or about $1 billion, for breaching the Digital Markets Act, the EU law governing large online platforms. It was the first penalty imposed on Google under that law.

The Commission issued two decisions. One imposed a 460-million-euro fine for favouring Google's own shopping, hotel, transport and sports services in search results. The other imposed a 430-million-euro fine over restrictions that prevented app developers from directing users to cheaper offers outside the Google Play store.

US Trade Representative Jamieson Greer had already criticised the decision, saying the EU enforcement action undermined constructive dialogue and created a real risk to transatlantic trade stability.

Under the Digital Markets Act, the Commission can fine major technology gatekeepers up to 10 percent of global annual turnover for breaches and up to 20 percent for repeat offences. An EU official said Thursday's penalties were equal to 0.22 percent of Google's turnover.

EU tech chief Henna Virkkunen said Europe would not back down from enforcing its laws and remained committed to its rules. EU officials have repeatedly said their digital rules are not aimed at American companies, a claim Washington has rejected.

The tensions come as US technology companies have built closer ties with the White House since Trump's return to office in January 2025, with several companies lobbying the president directly over European regulation.

The dispute also tests a trade framework agreed between Washington and Brussels last year. That agreement lowered US duties on European cars in exchange for EU concessions and was designed to avoid a trade war. It cleared its final legal hurdles in the EU only recently.