PayPal shares slide as EU lawmaker raises prospect of new fees amid trade tensions

PayPal shares fell 4% on Friday after comments from a European Union lawmaker raised concerns that payments firms could get swept up in escalating U.S.-Europe trade tensions and potential tariffs.

Uncertainty over tariffs and mounting trade actions have unsettled global markets, causing volatility, straining supply chains and shifting investor sentiment across industries.

Earlier this week, U.S. President Donald Trump said larger tariffs could be placed on the European Union and Canada if they both work together “to do economic harm to the USA”.

“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.”

If imposed, the measures would pose a new challenge for the payments sector, which is typically shielded from tariffs as it does not depend on trade of physical goods.

Separately on Friday, a German government spokesperson also said “nothing is off the table” with regards to punitive measures in response to the threat of U.S. tariffs. PayPal declined to comment on the matter.