The EU could also use a “digital weapon” against Trump – This is how Virkkunen commented on its use

The President of the United States Donald Trump announced on Saturday that it would impose 10 percent tariffs on eight European countries starting February 1 over a dispute over Greenland.

In addition to Finland, the customs would apply to Denmark, Norway, Sweden, France, Germany, Great Britain and the Netherlands. They would rise to 25 percent at the beginning of June, and would continue, according to Trump, until the United States has taken control of Greenland.

The European Union is preparing for Trump’s customs threats with, among other things, possible counter-tariffs and the introduction of the anti-pressure instrument (ACI). It is an instrument with which the EU could limit the access of American companies to the market and participation in public procurement. ACI would also enable restrictions on the provision of digital services by American companies in the EU.

Executive Vice-President of the European Commission and Commissioner for Technological Sovereignty, Security and Democracy Henna Virkkunen refuses to speculate on the content of the actual countermeasures, but admits that the Union also has tools that extend to digital services, should the worsening of the situation force them to use them.

“At this point, of course, we don’t want to speculate on what these countermeasures could mean. Our number one priority is that we don’t escalate this situation further, but we strive to enter into a good dialogue with the United States,” says Virkkunen.

He admits that restrictions on digital services can also be connected to the ACI anti-pressure instrument previously prepared by the EU, if necessary.

“It is possible to combine a wide variety of services with it, and of course, in terms of digital services, Europe is the biggest market outside of the United States for American companies,” he says.

Digital tax for Americans?

In the European Parliament, some MEPs have demanded that Trump’s customs threats should be answered with a digivoro that punishes American techno giants.

The senior vice-president of the commission reminds that the digital tax proposal at the EU level already failed during the previous commission, because the member states opposed it and a new proposal has not been made at the European level.

Virkkunen refuses to answer whether the digital tax could still emerge as a countermeasure if a trade war breaks out.

“Our goal is to avoid a trade war by all means, because neither the United States nor Europe will benefit from it.”

Hot potato

Even before the Greenland dispute, digital issues have heated up the relationship between the EU and the US: the US wanted to include the EU’s digital regulation as part of the trade negotiations, but the Commission rejected the idea.

“We don’t want to negotiate about these. We have the same rules for everyone,” says Virkkunen.

According to him, the EU’s digital rules want to ensure that Europe has a fair, democratic and safe digital environment.

A message to Trump

The Executive Vice-President of the Commission is scheduled to travel to Davos on Wednesday for the World Economic Forum meeting.

What is your message to Trump or his inner circle?

“The fact that our common interest is to find a common understanding.”

“It is extremely important for both Europe and the United States that mutual trade and good cooperation in technologies, economy and security continue.”

According to Virkkunen, the EU is committed to supporting Greenland’s security and the Commission is currently preparing a new Arctic strategy.

In Davos, the commissioner will also meet US technology companies, for which the EU is a significant market.

Virkkunen says that American companies often want to discuss the rules set by the EU and their implementation.

According to the commissioner, companies understand the EU’s role, even if they pursue their own interests.

“Yes, companies understand that Europe sets its own rules. This is how it is everywhere in the world,” says Virkkunen

By Editor