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The EU is fighting over Donald Trump’s so-called “big beautiful bill” provisions on the US budget, where the vice-chairman of the European Parliament’s Tax Commission, which allows European companies to see that certain taxes imposed on US companies are being taxed on other taxes.
German European People’s Party MEP Markus Ferber said the European Commission proposed the proposed legislation in ongoing tariff negotiations with the Trump administration.
“We’re worried because in this ‘one big beautiful bill’ there is a special tax aimed at jurisdiction that imposes taxes on the US,” Faber told Euroneus.
He added that jurisdictions like the EU have already implemented OECD contracts to establish a global minimum tax of 15% on multinational companies, but are being directly targeted.
“It could also affect member states that have introduced the Digital Services Tax,” he noted.
The OECD contracts approved by 140 countries, yet still unadded by the US, have introduced a 15% global minimum tax on multinational corporations’ profits, regardless of where profits are declared in effect from January 1, 2024.
Meanwhile, countries such as Denmark, Portugal and Poland are implementing digital services taxes targeting US tech giants, while other countries are in the process of creating it.
The US is now aiming to oppose taxes that it deems unfair through the provisions of the “big beautiful bill” that raises US income tax by 5% each year and hits foreign investors.
The committee is concerned, officials said.
According to Ferber, EU officials have posted this provision in the US budget bill on the negotiation table. “But we still don’t know that the US has agreed to put it in the basket,” MEP said.
For several weeks, the EU and the US have been discussing resolutions on a trade dispute that has been ongoing since mid-March.
The US imposes 50% tariffs on EU steel and aluminum, 25% on cars and 10% on all EU imports.
The EU is preparing measures targeting US products worth approximately 115 billion euros. These measures will either be suspended until July or await approval by EU member states.
