Trump orders Section 301 probe of the EU and threatens tariffs over $1 billion Google fine

The EU fine

On July 23, the European Commission fined Google a total of €890 million ($1 billion) for two violations of the Digital Markets Act, the bloc's 2022 law policing dominant online platforms. A €460 million penalty targeted the company's practice of favoring its own shopping, hotel, transport and sports services in Google Search results. A second €430 million fine addressed restrictions that prevented app developers from steering users toward cheaper offers outside the Google Play Store.

It was the first DMA penalty imposed on Google and the largest total under the regulation to date, though Apple's €500 million fine from last year remains the largest single one. Google has 60 days to bring its practices into line or face periodic penalties of up to 5 percent of its average daily worldwide turnover. The company said it will appeal, which suspends neither the fine nor the deadline: a General Court ruling on July 8 closed the last route for challenging a decision before it applies. The Commission also pointed to a constructive dialogue with Google and to significant progress on compliance, which makes daily penalties unlikely for now.

Trump's retaliation threat

The following day, President Donald Trump said on Truth Social that the United States would immediately open a Section 301 trade investigation into the EU's practice of "ROBBING" American companies, and that new tariffs would follow. "The European Union will pay a very big price for this illegal and highly unethical conduct, which I have consistently warned them about," he wrote. He said the penalties would be "entirely reversed" and anticipated "a substantial TARIFF to be placed on them at the earliest possible moment."

The United States of America is not a 'PIGGYBANK' for Europe, nor will we allow it to be.

Trump put the cumulative EU fines against American tech firms at more than $18 billion, listing $15 billion for Apple, $3 billion for Meta and $2.5 billion for Amazon alongside Google's. Those figures do not match the record. Apple's DMA fine last year was €500 million, about $570 million; the $13 billion figure often attached to Apple is a 2016 state-aid tax recovery order upheld by the EU's top court in 2024, not a fine. Meta was fined about $840 million in a 2024 antitrust case and €200 million under the DMA last year. Amazon has drawn no comparable EU penalty, and $2.5 billion is the amount it agreed to pay the US Federal Trade Commission in September 2025 over Prime sign-ups.

The Section 301 tool, part of the Trade Act of 1974, allows Washington to investigate foreign practices it deems discriminatory and retaliate with duties. It has become the administration's main tariff instrument since the Supreme Court struck down the tariffs built on emergency economic powers on February 20. A temporary 10 percent global duty under Section 122 filled the gap until this week.

Trade tensions escalate

US Trade Representative Jamieson Greer had already criticized the Google fine on July 23, saying it undermined "constructive dialogue" and posed a "real risk to the continuation of transatlantic stability with respect to trade." He said the fine and other EU actions "are driving massive uncertainty for U.S. exports of goods and services to Europe."

It becomes clear that the EU continues to target the most competitive U.S. companies.

The same evening, Greer's office announced Section 301 tariffs of 10 to 12.5 percent on more than 60 economies, including the EU, drawn from a separate investigation into forced-labor import rules. Countries that have committed to adopting and enforcing bans on goods made with forced labor face 10 percent; those that have not face 12.5 percent. The duties took effect on Friday, July 24, replacing the Section 122 tariffs that expired the same day. Trump's threat opens a fresh front, putting at risk the Turnberry agreement struck in July 2025, whose framework entered into force on July 1 this year. EU officials have insisted that any new tariffs would breach that deal.

EU tech chief Henna Virkkunen said the Commission would not hesitate to use its tools to safeguard the opportunities the DMA opened up. The Commission can fine gatekeepers up to 10 percent of global annual turnover for DMA breaches, and up to 20 percent for repeat offenses.

What comes next

Section 301 investigations typically take months, so new tariffs are unlikely to take effect immediately. Google has until late September to change how its search results and app store work, or face periodic penalties. Brussels has signalled it will keep enforcing the DMA regardless of the tariff threat, which leaves two clocks running at once: the compliance deadline on Google and the investigation in Washington.