EU Extends Olive Branch to Trump Administration by Abandoning Digital Tax Plan

According to a report by Jinse Finance, citing Politico, the European Commission has abandoned its plan to tax digital companies, marking a significant victory for U.S. President Trump and American tech giants such as Apple (AAPL.O) and Meta Platforms (META.O). Documents show that as EU-U.S. trade negotiations enter their final stages, Brussels has removed the digital tax option from its seven-year fiscal plan set to begin in 2028. Senior EU officials are engaged in critical budget negotiations, with only a few days left before the budget is announced. This policy shift represents a major change for the EU—back in May, budget documents discussed by commissioners from all 27 EU member states still mentioned the idea of taxing tech giants to repay EU debt. This abrupt turnaround may be a strategic move by the EU. Currently, the EU is eager to secure favorable trade terms with the U.S., while Trump had previously threatened to impose retaliatory tariffs on Canada in response to its digital tax policy.