EU targets Trump's 'Big Beautiful Bill' over tax provision in tariff talks

Published on 12/06/2025 - 8:00 GMT+2

The EU is wrangling complete a proviso of Donald Trump's alleged "Big Beautiful Bill" for nan US fund that could spot European companies taxed higher than others successful retaliation for definite taxes imposed connected US enterprises overseas, nan vice-chair of nan European Parliament’s taxation subcommittee has told Euronews.

The German European People's Party MEP Markus Ferber said nan European Commission has raised nan projected legislation—already approved by nan House of Representatives—in ongoing tariff negotiations pinch nan Trump administration.

“We are concerned because wrong this ‘One Big Beautiful Bill’ location are typical taxes aimed astatine jurisdictions that enforce taxes connected nan US,” Ferber told Euronews.

He added that jurisdictions for illustration nan EU, which person already implemented nan OECD statement establishing a world minimum taxation of 15% connected multinationals, are straight targeted.

“It could besides impact personnel states that person introduced a integer services tax,” he noted.

The OECD agreement, approved by 140 countries - though arsenic yet unratified by nan US - introduced a world minimum taxation of 15% connected nan profits of multinational companies, sloppy of wherever those profits are declared, pinch effect from 1 January 2024. The EU has transposed nan statement into rule and applies it to multinationals operating wrong nan Union, to nan ire of nan Trump administration.

Meanwhile countries specified arsenic Denmark, Portugal and Poland person implemented integer services taxes targeting US tech giants, while others are successful nan process of creating one.

The US is now looking to retaliate against taxes it deems unfair done a proviso of nan "Big Beautiful Bill” which would deed overseas investors pinch a bump successful US income taxation by 5 percent points each year, perchance taking nan complaint up to 20%, successful summation to existing taxes.

The Commission is concerned, officials said.

According to Ferber, nan EU executive has put this proviso of nan US fund measure connected nan negotiating table. “But we are not judge yet that nan US agreed to put it successful nan basket,” nan MEP said.

For respective weeks, nan EU and nan US person been discussing a solution to nan waste and acquisition conflict that has been ongoing since mid-March.

The US enforce 50% tariffs connected EU alloy and aluminium, 25% connected cars and 10% connected each EU imports.

For its part, nan EU has prepared countermeasures targeting astir €115 cardinal worthy of US products. These measures are either suspended until July aliases still awaiting support by EU personnel states.