EU could tax Big Tech if Trump trade talks fail
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European Commission President Ursula von der Leyen said early Friday that the European Union (EU) is ready to use its most powerful trade measures and may impose levies on US digital companies if negotiations with US President Donald Trump fail to end his tariff war against Europe, per Financial Times. Key quotes We are developing retaliatory measures. There’s a wide range of countermeasures . . . in case the negotiations are not satisfactory. An example is you could put a levy on the advertising revenues of digital services. It’s a turning point with the United States without any question We will never go back anymore to the status quo. There are no winners in this, only losers. Today we see the cost of chaos . . . the costs of the uncertainty that we are experiencing today will be heavy. Market reaction At the time of writing, the EUR/USD pair is trading 0.24% higher on the day to trade at 1.1230. Euro FAQs The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will…
