Berlin, March 29, 2025 – The Europe Today: German Foreign Minister Annalena Baerbock has proposed a fee on iPhone software updates as a countermeasure to new US tariffs on EU goods, according to German newspaper Der Tagesspiegel.
The proposal comes in response to US President Donald Trump’s announcement of a 25% tariff on EU car imports and auto parts, set to take effect next week. Trump has warned of further measures if the EU retaliates.
Speaking at the Berlin European Conference, Baerbock cited the EU’s Digital Services Act (DSA) as a mechanism to counter external trade pressures. “If others propose a 25% tariff, then we can put our entire toolbox on the table,” she said. She suggested a levy on digital services, adding, “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.”
According to German daily NOZ, citing Statista data, there are approximately 165 million iPhone users in the EU, and a €0.10 levy per update could generate around €165 million ($178 million) annually. However, reports question whether European consumers—who may ultimately bear the cost—would support such a proposal.
The US-EU trade dispute has escalated, with Washington accusing Brussels of unfair trade practices. The German auto industry is expected to be hit hardest, with Volkswagen and Mercedes-Benz facing major challenges. Rising production costs and factory closures have already put pressure on Germany’s manufacturing sector.
Trump’s 25% tariff on EU steel and aluminum took effect on March 12, and the EU has announced counter-tariffs on €26 billion worth of US goods beginning in April.
A similar trade war occurred during Trump’s first term, with 25% tariffs on European steel and 10% on aluminum, leading to retaliatory measures from Brussels affecting more than $10 billion in transatlantic trade.
