PayPal’s shares experienced a 5% drop on Friday following concerns raised by European Union lawmaker Bernd Lange about the possibility of new fees on U.S. tech companies like PayPal and Google due to escalating trade tensions between the U.S. and Europe. Lange, who leads the European Parliament’s international trade committee, suggested that digital service providers, including PayPal, could face additional charges as part of the EU’s response to the U.S.’s tariff threats.
The announcement follows comments from U.S. President Donald Trump, who indicated the possibility of higher tariffs on both the European Union and Canada if they collaborate in a manner that harms the U.S. economy. While the idea of imposing tariffs on digital services is complicated, due to the reliance on digital transactions rather than physical goods, the potential for such measures has contributed to investor anxiety.
A spokesperson from the German government echoed Lange’s comments, stating that “nothing is off the table” in terms of possible retaliatory actions. Despite these tensions, PayPal declined to provide further comment.
Analysts expressed doubt over the actual likelihood of these measures being enacted, with Argus Research analyst Stephen Biggar describing the situation as “sell first and ask questions later.” The potential implementation of tariffs on finance and payments remains uncertain, but the fear of such measures has triggered volatility in the stock market.
