The United States has threatened to impose retaliatory tariffs on major European firms if Brussels continues with its tax regulations on American tech giants. The dispute centers on the EU’s policies regarding companies such as Google, Apple, Meta, X, and Amazon.

According to Bloomberg, the US has expressed its willingness to employ all available tools to counter these measures, which may include imposing tariffs and restrictions on foreign services. European companies such as Siemens, Spotify, DHL, and SAP could be at risk as Washington deems the European measures “unjustifiable” and “discriminatory.”

The conflict has intensified after the European Commission imposed a fine of $120 million on the X social media platform. French Foreign Minister Jean-Noel Barrot characterized this move as “just the beginning” and commended the European Commission for its “tough measures.” This escalation highlights the growing rift between the US and the EU over the regulation of digital platforms and tax policies.