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American Focus > Blog > Politics > EU Globalists CAVE to Trump Administration, and Scrap Plans for Tax on US Digital Companies |
Politics

EU Globalists CAVE to Trump Administration, and Scrap Plans for Tax on US Digital Companies |

Last updated: July 12, 2025 6:15 pm
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EU Globalists CAVE to Trump Administration, and Scrap Plans for Tax on US Digital Companies |
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Donald J. Trump is flexing his geopolitical muscles like never before.

EU Bends to Pressure: A Strategic Win for Trump and the U.S. Tech Sector

Amid the chaos surrounding the implementation of new reciprocal tariffs under the Trump administration, one can’t help but notice the steady progression of ‘Hurricane Trump’ as it influences compliance from various nations, including supposed allies like the European Union.

The European Commission, often seen as the bastion of globalism, has finally abandoned its plans to tax digital corporations. This shift is widely viewed as a significant triumph for both Donald Trump and American tech giants.

Politico reported:

“With the EU and the U.S. embroiled in the final stretch of negotiations over a trade deal, Brussels removed the digital tax option from its — supposedly unrelated — list of proposed taxes for bringing in revenue during its next seven-year spending program, according to a document circulated on Friday seen by POLITICO.”

Ursula von der Leyen, weakened by the motion of censure in the European Parliament, is heading the talks for the new budget.

With a visibly weakened Ursula von der Leyen steering the commission, the agenda now turns to which taxes will form part of the budget proposal for 2028-2034.

“Deciding against a digital levy would be a major turn-around for the EU, which as recently as May floated taxing tech giants as a way of paying back the bloc’s debt. The idea was mentioned in a document on the next budget discussed by the EU’s 27 commissioners.

The U-turn could be a strategic move by the EU, which is desperate for advantageous terms on trade with the U.S. President Donald Trump threatened tariffs against Canada as payback for their digital levies.”

The EU wants to raise its taxes to pay for ‘covid recovery’.

However, the European nations are less than enthusiastic about Brussels imposing higher taxes on their citizens, particularly when they understand the implications for their fiscal autonomy.

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Currently, a significant portion of EU funds is derived from member states’ contributions.

“According to Friday’s document, instead of a digital levy, the EU wants to propose three new taxes targeting electronic waste, tobacco products, and large companies with a turnover exceeding €50 million. The goal is to generate between €25 and €30 billion annually to assist in repaying joint debts incurred during the post-Covid recovery.”

Read more:

Trump To Impose an Additional 10% Tariffs for Countries Aligning With ‘Anti-American Policies’ of BRICS Group

TAGGED:AdministrationcavecompaniesDigitalGlobalistsPlansscraptaxTrump
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