President Donald Trump announced plans to consider additional tariffs on goods imported from the European Union in retaliation for recent fines imposed on U.S. technology companies by the 27-nation bloc. The move follows the EU’s decision this week to fine Alphabet’s Google approximately $1 billion for breaching digital competition regulations, marking the latest in a series of penalties targeting American tech firms over recent years.

On Friday, Trump stated that his administration would initiate a Section 301 investigation under the Trade Act of 1974, which grants the president authority to levy tariffs against countries that engage in discriminatory practices toward U.S. companies. The president described the EU’s actions as “illegal and highly unethical conduct,” warning that the bloc would “pay a very big price” and signaling that a “substantial tariff” could be implemented as soon as possible.

The Section 301 mechanism has been utilized previously by the Trump administration to impose tariffs ranging from 10% to 12.5% on various trading partners in response to concerns over forced labor, effectively replacing earlier temporary tariffs that were invalidated by the U.S. Supreme Court in February. Unlike prior tariffs based on a broad interpretation of presidential emergency powers, Section 301 tariffs are considered more legally robust but require a detailed investigative and public comment process before new duties can be applied.

U.S. Trade Representative Jamieson Greer acknowledged that the EU’s fines against Google jeopardize the bilateral trade relationship but indicated a willingness to negotiate if those penalties are withdrawn. The investigation overseen by the Office of the U.S. Trade Representative will examine the EU’s measures and assess whether they constitute unfair treatment of American companies, potentially leading to additional tariffs targeting European goods.

This development comes amid ongoing tensions between the United States and the EU over regulatory approaches to technology firms and reflects broader challenges in transatlantic trade relations. The administration’s next steps and the outcome of the trade investigation will be closely watched by industry stakeholders and international trade observers.