EU reacts to US tariffs: Will there be paid updates?
This time, Germany is being struck in the center of its industry by the tariff hammer. Punitive tariffs on German automobiles have been suggested by US President Donald Trump. Specifically, Volkswagen, Mercedes-Benz, and BMW. There is a proposal for a 25 percent import tax, which is upsetting people outside of manufacturing executives. It is a strange response from Berlin. Everyone was taken aback by Foreign Minister Annalena Baerbock's proposal, which has little to do with conventional countermeasures but has enormous disruptive potential, particularly for Apple.
"Ten cents on that—Europe would make a lot of money from that."
Baerbock retaliated at a European conference in Berlin, albeit rhetorically and with a distinct purpose. "We can put our whole toolbox on the table if others, like today, suggest 25 percent." It was not an abstract suggestion. She went on to say specifically, "How frequently do we update our iPhone? Some people might not like it, but ten cents on it would bring in a lot of money for Europe. An idea that has the industry scratching its head. In addition to its target, Baerbock's proposed leverage also plays a role: She stated that even in the absence of conventional trading tools, the EU can still have an impact on digital goods.
EU law as a door opener?
Baerbock sees the legal basis anchored in Brussels. "We have the Digital Services Act (DSA), and it is powerful." The minister stated that the DSA was actually created as a response to another "major global power." But the framework can also be applied to US services—namely Apple and others. Whether this will lead to a concrete initiative remains to be seen. The wording seems more like a signal—a political volta in the transatlantic power game. Nevertheless, the debate has begun. And it goes deeper than previous tariff discussions—because it affects not only industry but also the everyday lives of millions of consumers.
What would an update fee mean?
Should such a fee become reality, the question quickly arises: Who ultimately pays the price? Apple is unlikely to hesitate to pass on any additional costs to its customers. And its update policy could also change. It's possible that manufacturers will be more sparing with updates in the future—or bundle them together to reduce costs. This would certainly pose a potential security risk. It's also unclear whether Android and Windows users would be exempt. After all, both Google and Microsoft are headquartered in the US—and both systems receive updates more or less regularly.