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EU May Target US Tech in Response to Trump’s Tariff Plans, Report Warns

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Former US President Donald Trump’s plan to impose new tariffs on European imports could spark an unconventional response from the European Union—one that targets American digital services rather than traditional goods, according to a recent report from Goldman Sachs.

Rather than engaging in a tit-for-tat tariff battle on physical products, the EU may leverage its growing trade deficit in services to push back against Washington’s trade measures. With US tech giants generating billions in revenue from European markets, Brussels could consider new digital restrictions to counterbalance the economic impact of Trump’s proposed tariffs.

A Renewed Transatlantic Trade War?

Trump’s announcement last week that he intends to introduce “reciprocal tariffs” has heightened fears of escalating trade tensions between the US and Europe. The Goldman Sachs report, authored by economists Giovanni Pierdomenico and Filippo Taddei, predicts that Washington could increase duties on European car exports by 25 percentage points and impose a 10% tariff on a range of key imports, including metals, minerals, and pharmaceuticals.

These tariffs, if implemented, would affect €190 billion worth of EU exports, accounting for nearly 40% of the bloc’s total shipments to the US.

Historically, the EU has responded to similar trade pressures with countermeasures of its own. When Trump imposed tariffs on European steel and aluminum in 2018, Brussels retaliated by levying duties on iconic American products such as bourbon whiskey and motorcycles. A second round of tariffs was planned but ultimately put on hold, awaiting a World Trade Organization ruling.

This time, however, EU policymakers are expected to proceed with caution.

“We expect the EU to favor a de-escalation of trade tensions as much as possible and resort to strong retaliation only as a last resort,” the Goldman Sachs report noted.

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A New Battlefield: The Digital Economy

Unlike in 2018, the EU now has an additional tool at its disposal—the Anti-Coercion Instrument (ACI), a recently introduced mechanism designed to counteract economic pressure from third countries. The ACI allows Brussels to impose tariffs and restrict access to European markets in response to coercive trade actions.

One area that could be targeted is the digital economy, where the EU runs an annual trade deficit of nearly €150 billion with the US. This imbalance is largely due to the dominance of American tech companies, which generate substantial revenues from European consumers while repatriating their earnings through low-tax jurisdictions like Ireland.

According to Goldman Sachs, the EU may look at restricting digital transactions, such as IT service royalties flowing back to the US, as an alternative to directly imposing tariffs on American goods.

“Services imported by the EU from the US span different sectors, including the financial sector, but the lion’s share are IT services that are then invoiced as royalties channelled to the US from Ireland,” the report stated. “Any restrictions on these transactions could have a meaningful impact on the services trade balance.”

The Challenges of Retaliation

While targeting US tech firms could be an effective countermeasure, any action under the ACI would require approval from at least 15 of the EU’s 27 member states—a process that could delay or complicate Europe’s response.

For now, European leaders are closely monitoring Trump’s next steps. If his administration moves forward with its planned tariffs, Brussels will have to decide whether to retaliate with direct duties on American products or take a more strategic approach—one that could see Silicon Valley caught in the crossfire of a transatlantic trade war.

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Kennedy Center to Close for Repairs After Judge Blocks Trump Naming Plan

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Most of Washington’s Kennedy Center will close for renovations after its board voted Tuesday to shut the landmark performing arts venue, hours after a federal judge blocked another attempt to add President Donald Trump’s name to the building.

The decision followed a ruling by US District Judge Christopher Cooper, who said the Kennedy Center board could not install a memorial to Trump or change the institution’s name without approval from Congress. The judge had previously ordered Trump’s name removed after it was added to the building’s facade.

“Simply put, Defendants cannot install memorials for President Trump or anyone or anything else at the Kennedy Center without Congress’s blessing,” Cooper wrote in his latest ruling.

Trump has said the renovation work, for which Congress has allocated $257 million, will not proceed unless the courts allow the board to move forward with plans to recognize him on the building. He said the Justice Department would appeal Cooper’s decision.

The board, which Trump chairs after replacing members with his appointees, voted to close the venue as it faces extensive repair needs and financial difficulties. Trump participated in the board’s virtual meeting, where the dispute over the institution’s future produced tense exchanges with Rep. Joyce Beatty, an Ohio Democrat and ex-officio board member who has opposed efforts to add Trump’s name.

The Kennedy Center has argued that the building requires major work. A partial ceiling collapse in a main hallway earlier this month added to concerns about the condition of the facility. Reuters reported that the closure could last as long as two years.

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The dispute over the building’s name began after Trump’s return to the White House. The board first added his name to the facade, but Cooper ruled in May that the change was unlawful because Congress had established the Kennedy Center as a memorial to President John F. Kennedy. Workers removed Trump’s name in June, leaving scaffolding and a tarp covering part of the facade.

In August, the board voted to add an inscription describing the center as restored and renovated by Trump and proposed renaming the plaza outside the venue. It also considered another inscription if the Trump Kennedy Center Fund raised $100 million. Cooper’s latest ruling blocked those plans.

The court dispute has coincided with financial problems at the institution. Court filings have described declining ticket sales and contributions, while several artists and organisations have canceled performances or moved activities elsewhere. The board has argued that Trump’s involvement and fundraising are important to the center’s financial future.

The Kennedy Center, which opened in 1971, hosts major performing arts organisations and events including the annual Kennedy Center Honors. Its future now depends on the renovation process, the court appeal and decisions over how the institution will be financed and managed.

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Brent Crude Climbs Above $108 as Hormuz Strike and Saudi Pipeline Shutdown Raise Supply Fears

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Brent crude prices climbed above $108 a barrel on Monday as growing disruption around the Strait of Hormuz raised fresh concerns about global oil supplies.

Brent crude for October and November deliveries rose by more than 3% during morning trading, extending gains from the previous week when prices moved back above the $100 mark. US West Texas Intermediate crude for October delivery also advanced, rising about 2.3% to around $102 a barrel.

The latest increase followed Saudi Arabia’s announcement that its East-West oil pipeline had been temporarily shut after drone attacks. The pipeline transports crude across Saudi Arabia to ports on the Red Sea, providing an alternative route that allows exports to bypass the Strait of Hormuz.

The closure comes as shipping through the strategic waterway faces growing risks. An unnamed merchant vessel was struck in the strait on Sunday, killing one crew member and injuring three others, according to Iranian authorities.

Shipping conditions have changed significantly since the conflict began. Vessels are required to obtain permission from Iran to pass through the waterway, while Tehran is also considering a system for charging transit service fees. Ships that do not comply have faced attacks, while US forces have carried out periodic strikes along Iran’s coastline.

Diplomatic efforts to address the situation have also suffered a setback. Oman postponed planned talks between Iran and Gulf states concerning the future of the waterway, which is one of the world’s most important routes for seaborne oil shipments.

The disruption is already affecting fuel markets beyond the Gulf. In the United States, the national average price of diesel surpassed $6 a gallon on Friday for the first time, rising from about $5.85 a week earlier and roughly 60% above the $3.71 recorded a year ago.

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US petrol prices have also reached record levels, averaging about $4.22 a gallon after rising over the Labor Day weekend.

President Donald Trump has blamed Ukraine for part of the diesel supply pressure, saying Ukrainian President Volodymyr Zelenskyy should stop targeting Russian diesel infrastructure. Ukraine has attacked more than 20 Russian refinery targets this summer, while Russia responded by banning diesel exports.

According to Lipow Oil Associates, Russia’s export restrictions have removed about 800,000 barrels per day of diesel supply, while disruptions linked to the Strait of Hormuz have affected around 1.2 million barrels per day.

The broader impact on crude supplies is even greater. Oil flows through the Strait of Hormuz have fallen from about 20 million barrels per day before the war to roughly 7 million. The conflicts have also disrupted refineries representing about 5 million barrels per day of capacity, adding to pressure on global fuel markets.

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Google Plans €13 Billion Investment in Finland Data Centres

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Google is set to invest at least €13 billion in data centres and digital infrastructure in Finland over the next two years, marking the company’s largest single investment in Europe as it expands its capacity for artificial intelligence and other digital services.

The investment will support data centres and related infrastructure in the Finnish municipalities of Hamina, Kajaani, Muhos and Vaala. Google also plans to fund clean energy projects as well as initiatives focused on biodiversity, education, research and workforce development.

The company said the decision reflects Finland’s strong position in developing energy-efficient infrastructure for artificial intelligence. The new facilities will support a range of Google services, including its Gemini chatbot.

Construction is expected to take place during 2027 and 2028. Google estimates the investment could contribute around €3.6 billion annually to Finland’s gross domestic product and support more than 37,000 jobs. About 16,000 of those positions are expected to be linked directly to construction work.

Once construction is completed, Google expects its facilities and related economic activity to support around 7,000 jobs each year. These positions are expected to include technical and facility roles, equipment suppliers and workers in nearby shops, restaurants and other services.

Finnish Prime Minister Petteri Orpo welcomed the announcement, saying the investment demonstrated the country’s strengths and could generate benefits beyond the immediate spending.

“The value of the data economy extends far beyond direct investment into spurring innovation, research and development,” Orpo said. He added that closer cooperation with Google could produce long-term benefits for both sides.

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Why Finland is attracting data centres

Finland’s climate and energy supply are major factors behind its appeal to technology companies. Data centres consume large amounts of electricity and produce substantial heat, making cooling a major operational cost.

The country’s cold climate can help reduce cooling requirements, while its energy system includes nuclear power, wind and hydropower. The combination of relatively stable electricity supplies and favourable conditions for cooling has encouraged a growing number of data centre projects across Finland.

Google has maintained a presence in the country since 2009, when it acquired a former paper mill in the coastal city of Hamina and converted the site into a data centre. The company has expanded the facility over the years.

The latest investment comes as Finland faces weak economic growth and record unemployment. For Orpo’s government, attracting major technology investments has become an important economic priority.

With the country’s data economy offering prospects for investment, employment and research, Google’s announcement is expected to strengthen Finland’s position as a major European hub for digital infrastructure and artificial intelligence.

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