Archive: https://archive.is/2025.03.27-211918/https://www.ft.com/content/8d37105e-9a69-4bde-9463-beccd413695a

The EU is considering hitting US services exports, including Big Tech’s operations, to retaliate against Donald Trump imposing 25 per cent tariffs on the car industry and promising a further round of measures next week.

Brussels has already unveiled extra duties on up to €26bn of US goods after Washington imposed steel and aluminium tariffs. But European officials and diplomats said the scale of action by the Trump administrationrequired it to consider using more powerful trade tools.

The bloc has wide powers to suspend intellectual property rights and exclude companies from public procurement contracts under its Enforcement Regulation, which was strengthened in 2021 after a trade conflict with the first Trump administration.

“The Americans think that they are the ones with escalation dominance [in the trade war], but we also have the ability to do that,” said one EU diplomat, adding that the aim was ultimately to de-escalate with a comprehensive trade deal.