DIGITALEUROPE reaction to US announcements: Tariffs are bad for tech
DIGITALEUROPE is deeply concerned about the tariff measures announced by the US Administration today. The EU and the US are interconnected economies, tariffs will result in painful repercussions on the digital and digitalizing industries on both sides of the Atlantic. We encourage both the EU and the US to urgently return to the negotiating table, prioritize constructive dialogue, and collaboratively seek solutions that avoid unnecessary economic harm.
On 13 February, the US Administration announced plans to introduce additional tariffs against key trading partners, leading to new trade restrictions that were announced on 2 April.
Tariffs are bad for tech. This is an extra tax on products that are essential for the running of the digital economy like advanced machinery, grid technologies and telecoms equipment. It’s bad for both the US and Europe.
Together we can win the tech race, but companies need an open transatlantic market to scale, innovate and create the products and solutions that can create value and keep us safe.
DIGITALEUROPE strongly opposes these tariffs, given the significant economic damage they risk causing. Introducing tariffs triggers uncertainty in supply chains, raises costs for businesses and consumers, and ultimately endangers growth and jobs.
Tariffs will also damage our collective security. The US and EU rely on each other in the critical technologies that will define the future. Extra costs will slow down their development and harm defence and dual use companies innovating the next generation of technologies that will keep us safe.
The risk of a spiraling trade conflict is real, as tariffs imposed by the US administration will inevitably prompt a set of unified EU countermeasures designed to protect European economic interests. Any trade measures, both in the US and EU should be transparently implemented giving sufficient time for businesses to adapt to changes and minimising economic disruptions.
The EU and US share the world’s largest and most integrated economic relationship, with €1.6 trillion in trade, goods and services, and €5.3 trillion in investment, supporting 16 million jobs on both sides of the Atlantic.
Particularly in challenging geopolitical circumstances, our collective priority should be advancing mutual economic and security interests through collaboration, not restrictive trade barriers. That is why we propose a Dual Use and Critical Technology Council to discuss these issues directly with industry.
