Merz told Trump EU digital market rules not up for debate

TOULON: France and Germany on Friday defended Europe’s right to adopt its own legislation on technology — EU digital market rules — after US President Donald Trump criticised European rules on digital services, saying any US coercion would be met with retaliation.

Trump on Monday threatened to slap additional tariffs on all countries with digital taxes, legislation or regulations, saying they were designed to harm or discriminate against American technology, in an escalation of his criticism of EU rules on digital services.

Speaking at a joint news conference with the German leader, French President Emmanuel Macron rejected the threats, and said any move by the United States to challenge the bloc’s regulations would be met with retaliation from the EU.

“Tax and regulation issues are the preserve of our national parliaments and the European parliament,” Macron said.

“We won’t let anyone else decide for us,” he said.

“Should such measures be taken, it would qualify as coercion and prompt a response from the Europeans,” he added, referring to the EU’s anti-coercion instrument, which allows the bloc to
punish countries seeking to pressure it to change its policies.

USING TARIFFS AS A WEAPON

It is the use of higher US tariffs by Trump as mode of coercion and a tool to expand the US influence and forward its business interests that make the EU digital market regulations a target.

Read more: Trump to China: Give magnets or face 200% tariffs

Things have reached a point where a country like Denmark — a NATO member — has to raise the issue of US interference in Greenland which Trump thinks should be part of the United States.

Read more: Rare earths: US diplomat summoned over Greenland ‘interference’

The Trump administration has consistently criticised the EU’s Digital Markets Act (DMA), which seeks to curb the power of tech giants, and the Digital Services Act (DSA), which requires large online platforms to tackle illegal and harmful content.

SOVEREIGN RIGHT

Speaking alongside Macron, German Chancellor Friedrich Merz said he had told Trump that how the EU regulates its digital market is an expression of the bloc’s sovereignty, and that he could not accept anyone questioning that.

“We are doing this in our own interest and solely for our own interest, and we will certainly not be guided by statements that perhaps consider completely different, perhaps even no, regulation necessary,” Merz said.

The European Commission said earlier this week it was the sovereign right of the EU and its member states to regulate economic activities.

At the same time, the European Commission firmly rebutted Trump’s statement that the EU was targeting U.S. companies, insisting the DMA and DSA applied to all platforms and firms operating in the bloc.

TRADE WAR WITH CHINA

Meanwhile, a powerful nation like China isn’t acting like the European nations which have lost international clout due to economic and political decline, ending up subservient to the US influence.

That’s the Trump tariffs, which are part of the overall US-China trade war, have produced practical retaliation by China through various moves.

One of the example is China issuing a new type of visa — a K visa– to young science and technology talents entering the country.

Read more: China lures science, technology talent amid US immigration crackdown

The amended regulations will come into effect on October 1 at a time when the United States is witnessing a crackdown on immigration and top universities under the Trump administration.

Meanwhile, the US is set to make it more difficult for global chipmakers Samsung, SK Hynix and Intel to produce chips in China by revoking permission for the companies to receive American semiconductor manufacturing equipment there.

Read more: US to make chipmaking harder for Intel, Samsung in China