The European Union could impose rates to PayPal (PyPL) in response to the tariff dispute with USA, As stated on Friday a high European legislator.
Climbing in the commercial dispute
Bernd Lange, president of the International Committee of the European Parliament, told journalists in Berlin that the block is evaluating measures to counteract the tariffs imposed by Washington on certain European products.
Although the details of the possible measure against PayPal were not specified, Lange suggested that reprisals could be applied to digital financial services companies with great presence in Europe.
Context of commercial tension
The commercial dispute between the EU and the US has intensified in recent months, with Washington imposing new rates on key European products, including steel and electric cars. In response, Brussels has threatened retaliation measures that could affect US technological and financial giants.
The PayPal case is particularly relevant, since the company has a strong presence in the European market, with millions of users who depend on their services for digital transactions.
They are not the only products. Trump threatened with 200% tariffs to wine and Europe responded with raising those applying to whiskey, motorcycles and boats.
Impact on markets
PayPal actions have shown volatility in the midst of these commercial tensions. At the end of Thursday, the company’s titles fell 1.59%, located at $ S68.86, and in the market prior to the opening they operated with an additional decrease of 0.81%.
This scenario of uncertainty could affect not only PayPal, but other companies in the technological and financial sector that operate in Europe. Analysts warn that if the EU advances with these rates, it could unleash a new phase of commercial reprisals between both economic blocks.
What is still in the dispute?
Brussels and Washington have conversations to avoid a major escalation in the commercial war. However, with the US elections on the horizon and political pressure in both regions, the perspectives of a rapid agreement seem uncertain.
The impact of these possible rates on consumers and companies is not yet clear, but what is evident is that the commercial relationship between the EU and the US faces one of their most tense moments in recent years.
Source: Ambito
