BERLIN (Reuters) -A German government spokesperson said on Friday that "nothing is off the table" with regards to punitive measures in response to the threat of U.S. tariffs, after an EU lawmaker suggested they target U.S. tech giants.
Asked whether this approach would be possible, the spokesperson said that "at the moment, nothing is off the table... everything is being looked at".
"Decisions must be made jointly and in consideration of the costs and benefits within the European Union and under the leadership of the European Commission - this process is underway," he added.
U.S. President Donald Trump on Wednesday announced a 25% tariff on vehicles imported into the U.S., a move with far-reaching implications for Germany's car industry, especially Volkswagen, which has a large supply base in Mexico.
European Union officials are trying to ease tensions with the U.S. and prevent a trade war, and the German government spokesperson said "we are still hoping, we are still counting on reaching agreements" with Washington.
Earlier on Friday, a senior European lawmaker said the EU could charge fees on PayPal and Google if negotiations with the U.S. were to fail.
"In the case of digital service providers, there is also a huge economic interest on the part of U.S. companies," said Bernd Lange, the head of the European Parliament's international trade committee. "In this respect, you can also look at charging fees on PayPal or Google."
"Ultimately, service providers are not excluded from possible countermeasures, depending on what the U.S. does and how far and where the spiral leads," he told journalists in Berlin.
(Reporting by Christian Kraemer and Andreas Rinke; Writing by Friederike Heine; Editing by Ludwig Burger and Jan Harvey)