The European Union is reportedly considering imposing tariffs on digital services provided by American tech companies as a countermeasure to President Donald Trump's tariffs on European exports. The Washington Post reported Tuesday that the proposed tariffs could impact billions of dollars in digital services sold by U.S. tech giants within the European market.

According to the report, three unnamed European officials confirmed that the bloc is discussing tougher responses due to stalled trade negotiations with the Trump administration. These potential tariffs would mark a significant escalation in the ongoing trade dispute between the two economic powers.

France is cited as one of the member states in favor of imposing duties on U.S. digital services, viewing it as a necessary response to Washington's protectionist policies. In contrast, Italy reportedly opposes the plan, reflecting divisions within the EU over how aggressively to respond to American actions.

A second anonymous official expressed concern that the U.S. could broaden its tariffs to include pharmaceutical products and other sectors, further exacerbating tensions. To navigate internal disagreements and minimize disruption, the EU might adopt a compromise approach by implementing partial tariffs targeting specific digital services.

This possible move comes amid growing frustration in Europe over the lack of progress in trade talks with the U.S. Trump’s administration has pursued a hardline strategy aimed at reducing trade imbalances, particularly through reciprocal tariffs. While intended to promote fairer trade, these measures have strained transatlantic economic relations and sparked retaliatory discussions among European leaders.

The consideration of tariffs on U.S. tech services signals a shift in the EU’s strategy, targeting one of America’s most lucrative and globally dominant industries. Digital services, including cloud computing, advertising platforms, and app marketplaces, represent a large portion of revenue for major U.S. firms operating in Europe.

If enacted, these tariffs would not only affect tech giants financially but could also influence the broader digital economy, including cross-border data flows and service accessibility. Observers note that any decision by the EU would likely be carefully calibrated to avoid excessive fallout while still sending a strong political message.

While no official decision has been made, the EU’s internal debates and strategic calculations continue as trade tensions with the U.S. remain unresolved. The coming weeks may determine whether the bloc moves forward with digital service tariffs or pursues alternative avenues to address its trade concerns.