Annalena Baerbock, the former German Foreign Minister, was a keynote speaker at the “Europe 2025” event in Berlin on March 25, organized by the Zeit, Handelsblatt, Tagesspiegel and WirtschaftsWoche. In her speech, Baerbock proposed imposing a fee on iPhone software updates in response to the new US tariffs on EU goods, as reported by the Tagesspiegel.
Baerbock referred to the 2022 EU Digital Services Act (DSA), which contains mechanisms for reacting to external trade pressure. She said, “We have created a toolbox in the last three years, actually in reaction to another great world power, with ‘Anti-Coercion Instruments’ also counter-coercion measures. And if others, just today, put 25 percent in the room, then we can also put our entire toolbox on the table.”
Baerbock suggested a mandatory payment for digital services. She said, “How often do we update our iPhone? So ten cents on that? Would bring a lot of money for Europe, would maybe not please others.”
Her proposal follows the announcement by US President Donald Trump of additional tariffs of 25 percent on imported cars and auto parts from the EU, worth hundreds of billions of dollars, which are set to take effect on April 3. Trump threatened with further measures if the EU reacts with its own tariffs.
The Tagesspiegel article reports on the mood at the conference, stating that the uncertainty about the US’s stance is a major concern. A US government that labels Europeans as “freeloaders” is seen as a “final wake-up call” for Europe, which must react decisively to avoid becoming “geostrategically irrelevant”.
According to the German newspaper Neue Osnabrücker Zeitung (NOZ), citing data from Statista, there are approximately 165 million iPhone users in the EU. With iPhones typically receiving six to ten software updates per year, a fee of 0.10 euros per update could generate around 165 million euros (178 million dollars) annually. Apple reported a net profit of 36.3 billion dollars in the first quarter of 2025.
The US has long accused the EU of unfair trade practices, including high tariffs on American goods and regulatory hurdles that affect American businesses.
In February, Trump announced he would impose 25 percent tariffs on all EU imports and claimed the block was created to “screw” America. The recent tariffs could hit the German auto industry hardest, with analysts predicting that rising production costs and factory closures will already put parts of the manufacturing sector in Germany under pressure.
Trump’s increase in tariffs on steel and aluminum imports from the EU by 25 percent took effect on March 12, after earlier exceptions, duty-free quotas and product exclusions expired. In response, the EU announced it would impose retaliatory tariffs on US goods worth 26 billion euros in April.
A similar trade dispute developed during Trump’s first term, when he imposed tariffs of 25 percent on European steel and 10 percent on aluminum, leading to EU countermeasures. The measures affected transatlantic trade worth over 10 billion dollars.