The EU should put its “entire toolbox on the table” in response to new US tariffs, Annalena Baerbock has said
German Foreign Minister Annalena Baerbock has proposed introducing a fee on iPhone software updates as a response to new US tariffs on EU goods, according to the newspaper Der Tagesspiegel.
The proposal follows an announcement by US President Donald Trump this week of an additional 25% tariff on hundreds of billions of dollars’ worth of imported cars and auto parts from the EU, expected to take effect next week. Trump warned of further measures if the bloc responded with its own levies.
Speaking at the Berlin European Conference on Thursday, Baerbock cited the EU’s Digital Services Act (DSA), adopted in 2022, which includes mechanisms for responding to external trade pressure.
“If others … propose a 25% tariff, then we can put our entire toolbox on the table,” Baerbock said.
She suggested one option could be a levy on digital services: “How often do we update our iPhone? Add ten cents to it – that would bring a lot of money for Europe, though others might not like [it] so much.”
The report, however, questioned whether European consumers – who might ultimately bear the cost – would support the German foreign minister’s proposal.
According to German daily NOZ, citing data from Statista on Thursday, there are approximately 165 million iPhone users in the EU. With iPhones typically receiving six to ten software updates per year, a €0.10 levy per update could generate around €165 million ($178 million) annually. Apple reported a global net profit of $36.3 billion in the first fiscal quarter of 2025, according to company filings.
The US has long accused the EU of unfair trade practices, including high tariffs on American goods and regulatory hurdles affecting American companies.
In February, Trump said he would impose 25% levies on all imports from the EU, claiming the bloc was created to “screw” America.
The latest tariffs could hit the German auto industry hardest, with carmakers like Volkswagen and Mercedes-Benz facing significant challenges in the US market, analysts say. Rising production costs and factory closures have already put pressure on parts of Germany’s manufacturing sector.
Trump’s 25% tariff hike on steel and aluminum supplies from the bloc took effect on March 12, following the expiration of previous exemptions, duty-free quotas, and product exclusions. In response, the EU announced it would impose counter-tariffs on €26 billion worth of US goods beginning in April.
A similar trade dispute unfolded during Trump’s first term, when he slapped tariffs of 25% on European steel and 10% on aluminum, prompting retaliatory measures from Brussels. The measures impacted more than $10 billion worth of transatlantic trade.
