France is preparing to take tough steps in the digital field against the new tariffs of the US. The volatility experienced in global markets after US President Donald Trump’s decision to increase import taxes has accelerated the European Union’s preparations for an economic response.

France will retaliate against US technology giants

French Minister of Economy and Finance Eric Lombard announced that various regulations targeting the activities of American technology companies in Europe are on the agenda. The minister stated that administrative regulations regarding data use could be strengthened and that special taxation of certain activities is also on the table.

This statement is considered to be part of the retaliation plans previously brought up by a French government spokesperson and discussed within the European Union. EU officials state that digital services that are not currently taxed could be included in the scope.

This move by France directly concerns technology giants operating in Europe such as Apple, Amazon, Google, Meta and Microsoft. A large portion of these companies’ revenues in Europe are managed through Irish-based structures.

However, Ireland opposes the regulations proposed by France. The Dublin administration argues that additional taxes and restrictions on digital services will disrupt the European internal market and lead to a decrease in foreign investment.

European Commission President Ursula von der Leyen stated that all measures against the trade war initiated by the US will be evaluated. Despite the surplus of 157 billion euros in goods trade, the European Union will face a deficit of 109 billion euros in services trade.

This picture has made the technology sector a possible target for achieving trade balance. So what do you think about this issue? You can share your views with us in the comments section below.