Shares in digital payments group PayPal (PYPL) were looking cheaper today as it was singled out by European lawmakers in the EU’s tariffs battle with the U.S.
Fees Could Be Placed on PYPL
According to a report in Reuters, Bernd Lange, the head of the European Parliament’s international trade committee, told journalists in Berlin that the European Union could charge fees on PayPal as part of the tariff dispute with the United States.
It wasn’t quite clear what fees Lange was referring to and how and when these would be applied. It was enough, however, to send PayPal’s shares down 3% in pre-market trading.
A German government spokesperson added to the heat on U.S. tech later in the morning, telling busy reporters that “nothing is off the table” with regard to punitive measures in response to the threat of U.S. tariffs.
U.S.Tech in Firing Line
As reported by Reuters, when asked whether countermeasures could target U.S. tech companies, the spokesperson said: “At the moment, nothing is off the table, but instead everything is being looked at.”
The spokesperson added: “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 under way.”
It follows a warning from President Trump yesterday that larger tariffs could be imposed on the European Union and Canada if they both work together to “do economic harm to the USA.” This would be on top of the threatened tariffs from early next month on the import of cars and alcohol into the U.S.
Is PYPL a Good Stock to Buy Now?
On TipRanks, PYPL has a Moderate Buy consensus based on 17 Buy and 14 Hold ratings. Its highest price target is $125. PYPL stock’s consensus price target is $94.25 implying an 41.20% upside.
