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US warns EU actions could undermine trade talks

The Trump administration has renewed its trade criticism of the European Union, warning that fines imposed on US technology companies and a recent loan to Airbus SE could undermine constructive negotiations.

“A real dialogue can only take place during a ceasefire,” US Trade Representative Jamieson Greer said in a statement on Thursday. “The EU’s recent actions undermine these efforts and pose a real risk to the continuation of transatlantic stability with respect to trade.”

The European Commission, the EU’s executive arm, said on Thursday that Alphabet Inc.’s Google had been fined a total of €890 million ($1 billion) for violating the bloc’s Digital Markets Act.

Greer described the fine, along with other recent decisions against Google, as “unreasonable financial penalties.”

“The EU’s various fines of Google alone add up to over 2 per cent of the EU’s budget — a larger ‘contribution’ to the budget than many EU member states,” he said.

In his statement, Greer also criticised the €3 billion ($3.41 billion) financing announced in late June for Airbus by the European Investment Bank, the EU’s lending arm.

US officials have argued that state support for the Toulouse, France-based aircraft manufacturer gives Boeing Co. an unfair competitive disadvantage, although Washington and Brussels have since resolved the dispute.

“It becomes clear that the EU continues to target the most competitive US companies,” Greer said. “The EU often claims that it is looking for stability and predictability in our trading relationship, but these actions are driving massive uncertainty for US exports of goods and services to Europe.”