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Even supposed allies have disagreements about the finer points of their alliances, and a long-running disagreement about how American technology companies operate in Europe may be coming to a head this week.
President Donald Trump has made no secret of his intentions to use tariffs and the threat of tariffs to persuade both allies and enemies to support his agenda.
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In his latest move on Friday, Trump signed a memorandum defending U.S. tech companies from what the White House says is "any act, policy, or practice in the European Union or the United Kingdom (that) incentivizes U.S. companies to develop or use products and technology in ways that undermine free speech or foster censorship."
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The administration also targeted digital service taxes (DSTs) that U.S. companies are subject to across the Atlantic. The White House says it will "consider responsive actions like tariffs to combat DSTs, fines, practices, and policies that foreign governments levy on American companies."
Congressional Republicans join the fight against the EU
Over the weekend, U.S. Rep. Jim Jordan (R-OH) followed up on Trump's memorandum and addressed a letter, co-signed by Scott Fitzgerald (R-WI), to EU antitrust czar Teresa Ribera, asking her to clarify the political bloc's Digital Markets Act while stating their belief that the regulations target American companies.
The DMA allows the EU to levy fines of up to 10% of a company's global annual revenue, and U.S. politicians are unhappy about this.
"These severe fines appear to have two goals: to compel businesses to follow European standards worldwide, and as a European tax on American companies,” Jordan said in the letter, which was viewed by Reuters.
The EU adopted the DMA in 2023, but it wasn't until 2024 that a U.S. company ran afoul of the law.
Apple (AAPL) received the ignominious honor of becoming the first company to be sanctioned under the DMA on Nov. 5. While this is Apple's first strike under the new DMA, it isn't the first time the EU has fined the world's most valuable company.
In 2023, Apple was issued a $1.95 billion fine for how it treats Apple Music competitors.
The European Commission claimed that Apple has been restricting app developers "from telling iOS users about alternative and cheaper music subscription services" for the past decade, leading Apple users to pay higher prices for music streaming services.