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By Jordan King and Yevgeny Kuklychev
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Austria's economy minister has urged the European Union to strike back against U.S. President Donald Trump's broad tariffs by targeting Republican-led states and tech companies with retaliatory measures. The suggestion, made Thursday in Vienna, aligns with growing European anger over what many leaders see as politically motivated economic aggression.
"We have to hit Republican states and we have to hit Donald Trump's friends, the tech companies," Austria's Minister of Labour and Economy Wolfgang Hattmannsdorfer said at a news conference, according to Reuters.
Trump's new trade policy includes a blanket 10 percent tariff on most goods entering the United States, with even higher rates for certain trading partners such as the EU.
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Why It Matters
The scope and scale of the tariffs represent a significant disruption to transatlantic commerce. The European Union is among several trading blocs now evaluating economic and political countermeasures. Hattmannsdorfer's call to focus on Republican-led U.S. states and politically connected corporations marks a rare foray into explicitly political trade retaliation.
Even before Trump's tariff salvo, European officials had been debating potential imposition of digital services taxes aimed at large U.S. tech firms, many of which are based in or politically aligned with Republican strongholds such as Texas and Florida. Hattmannsdorfer's remarks suggest a sharper, more targeted use of these tools in direct response to U.S. actions.
The comment marks the latest escalation of what appears to be a growing rift between the Trump administration and America's European allies, with Trump's reported ultimatum to European firms over their DEI policies, NATO spending and future Russia policy proving to be major points of friction.
What To Know
According to a separate Reuters report, European Commission President Ursula von der Leyen said on Thursday that the EU had finalized a first package of tariffs worth up to €26 billion ($28.4 billion) in response to earlier U.S. steel and aluminum duties. Further measures are in preparation if negotiations with Washington fail.
The EU is also considering whether to expand its scope of retaliation to include services and government procurement access, especially for U.S. firms operating in Europe. A French government spokesperson said that digital services were likely to be a focus of any additional measures expected by the end of April, Reuters reported.
European Commission President Ursula von der Leyen said in a public statement delivered in Samarkand, Uzbekistan: "We're now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.
"I deeply regret the U.S. move," she said, adding that it could have "immense consequences" for the global economy.
Italian Prime Minister Giorgia Meloni said the EU would seek an agreement to avoid escalation but didn't rule out retaliation. "An adequate European response" remained on the table, she said, according to Reuters.
Former EU trade negotiator Ignacio Garcia Bercero said the bloc should consider measures with "maximum political impact" in the U.S., such as limiting access to EU public procurement or services markets.
Newsweek has reached out to Austria's foreign ministry for comment via email.
What People Are Saying
The European Commission replying to Newsweek email: "There is nothing we can comment on this. There is a Trade Council meeting next Monday in Luxembourg. You can follow via this website."
Austria's Minister of Labour and Economy Wolfgang Hattmannsdorfer: "We have to hit Republican states and we have to hit Donald Trump's friends, the tech companies."
European Commission President Ursula von der Leyen: "We're now preparing for further countermeasures to protect our interests and our businesses if negotiations fail. I deeply regret the U.S. move."
CEO of the Wisconsin Economic Development Corporation Missy Hughes: "The on-and-off of the tariffs has really caused a lot of uncertainty and, frankly, disappointment from the conversations that we've had with Germans. There's a lot of feeling that for many, many years, we've had an excellent relationship across Europe, and real confusion about why things have changed."
Republican Senator Rand Paul: "When Smoot and Hawley put on their tariff in the early 1930s, we lost the House and the Senate for 60 years. So they're not only bad economically, they're bad politically."
What's Next
EU trade ministers are set to meet in Luxembourg to discuss options for additional tariffs and policy tools, including measures under the EU's new anti-coercion framework. The European Commission will likely present a broader package of countermeasures by mid-April.
With neither side signaling a retreat, the escalating trade conflict raises the risk of a full-scale trade war, potentially reshaping U.S.-EU economic relations for years to come.
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