According to ChainCatcher, citing Politico, the European Commission has abandoned its plan to tax digital companies, marking a major victory for US President Trump and American tech giants like Apple (AAPL.O) and Meta Platforms (META.O). Documents show that Brussels has removed the digital tax option from its seven-year fiscal plan launched in 2028 as trade negotiations between the EU and US enter the final sprint stage.
EU top officials are conducting key budget negotiations, with only days left before the budget proposal is published. This policy shift is a significant change for the EU - in May this year, the budget documents discussed by 27 EU commissioners still mentioned the idea of repaying EU debt by taxing tech giants. This sudden turn may be a strategic move by the EU.
Currently, the EU urgently hopes to obtain favorable trade terms with the US, and Trump had previously threatened to impose retaliatory tariffs on Canada in response to its digital tax policy.
