Why Trump administration is threatening retaliation against Accenture, Spotify
What's the story
The United States has threatened to retaliate against the European Union (EU) over its plans to tax American tech companies. The threat specifically targets major European firms such as Accenture, Siemens, and Spotify. The warning comes as part of the Donald Trump administration's response to what it calls discriminatory practices by the EU and some member states.
Trade tensions
US Trade Representative's warning
The Office of the US Trade Representative (USTR) issued a stern warning on social media. It said, "If the EU and EU Member States insist on continuing to restrict, limit, and deter the competitiveness of US service providers through discriminatory means, Washington will have no choice but to use all tools at its disposal against these unreasonable measures." The post also highlighted that major European companies could face retaliatory action under US law.
Trade act
US investigation into EU's digital commerce policies
The US is launching an investigation under Section 301 of the Trade Act of 1974. This could allow the government to impose trade remedies, including tariffs. The USTR has flagged other European firms like DHL Group, SAP SE, Amadeus IT Group SA, Capgemini, Publicis Groupe, and Mistral AI for enjoying unrestricted access to the US market for years.
Regulatory stance
EU's response to US threat
The EU has defended its tech regulations, saying they apply "equally and fairly" to all companies operating in the bloc. A spokesperson for the European Commission said they will continue to enforce these rules without discrimination.