Trade tensions between the United States and Europe have escalated, with several countries considering their responses to the implementation of new tariffs by the US government.

France's Economy and Finance Minister Eric Lombard has suggested that the nation may impose taxes on the digital services of large technology companies as a retaliatory measure against US tariffs.

This proposal aims to address the challenges imposed by the tariffs and is part of a broader strategy to safeguard French and European economies.

In addition, French political figures, including Prime Minister Francois Bayrou, have criticized former US President Donald Trump's trade policies, claiming they could reduce France’s economic growth by more than 0.5 percentage points.

There are concerns that such policies are creating instability in transatlantic trade relations, prompting various stakeholders to consider how to mitigate the potential economic fallout.

Meanwhile, UK Prime Minister Keir Starmer has vowed to 'shelter British business from the storm' of US tariffs, pledging to enhance the UK's competitiveness.

Starmer's government aims to support businesses that may be adversely affected by the ongoing trade disputes, particularly in sectors significantly impacted by US tariffs.

The implications of US tariffs extend to various sectors, including manufacturing and digital services.

The tariffs, particularly on imports from China and other countries, have resulted in increased prices for consumers.

For example, tariffs on imported vehicles are set to increase costs for both foreign cars and American cars using imported components.

Estimates suggest that prices for certain American automobiles could rise between $2,500 and $5,000.

Significantly affected is Apple's iPhone, primarily manufactured in China, where tariffs could reach as high as 54%.

Projections indicate that the price of the upcoming iPhone 16 could rise by 43% if Apple opts to pass on these costs to consumers, raising the base model price from $799 to approximately $1,142.

Additionally, the tariffs may influence consumer behavior as import prices escalate.

Products such as traditional foods and commodities imported from Europe, including cheese and olive oil, are expected to see price increases driven by tariffs and supply chain disruptions.

This is compounded by inflationary pressures within the US economy, which analysts predict could lead to an increase in consumer prices of around 4% in the near term.

California’s governor, Gavin Newsom, has publicly distanced the state from the federal administration's trade policies, advocating for continued international trade relations and economic collaboration despite the tensions stemming from the tariffs.

Newsom’s approach reflects a broader desire within some US states to maintain robust trade ties irrespective of the federal stance.

The evolving trade landscape is marked by diverging responses across Europe and North America, with certain countries advocating for a hardline approach against the US tariffs while others prefer negotiation and compromise.

This discord highlights the complexities of international trade relations amid an increasingly contentious economic environment.