Europe shrugs off tariffs, plots to end tech reliance on US

US tariffs may be squeezing Europe's trade balance, but they are also pushing governments and businesses to spend big on keeping tech closer to home.

A new forecast from Forrester says that European tech spending will climb 6.3 percent in 2026, lifting the continent's tech bill above €1.5 trillion for the first time, as governments and enterprises pour cash into AI, cloud, cybersecurity, and the infrastructure needed to run them without leaning quite so heavily on US providers.

US tariffs are already causing problems, and Ireland is feeling it more than most thanks to its reliance on US multinationals. The knock-on effect is a smaller EU trade surplus and slower growth in the countries most exposed. Even so, Forrester expects the wider EU economy to hold its nerve, with real GDP growth in 2026 matching 2025, supported by strong intra-European trade and a steady ramp-up in ...