EU Plans Tax on US Tech Firms If Trade Talks Fail

European Commission President Ursula von der Leyen has indicated that the EU may impose taxes on major US technology companies if ongoing trade negotiations with the United States do not yield results. In a recent interview, she highlighted that a potential levy on advertising revenues from digital services could be one of the retaliatory measures considered. Von der Leyen emphasized the EU's commitment to protecting its digital laws, stating that regulations like the Digital Markets Act and VAT are not negotiable. She also mentioned a new trade tool, termed the 'anti-coercion' instrument, which could limit American companies' access to public contracts within the EU. While the EU has decided to delay its planned countermeasures for 90 days to allow for negotiations, tensions remain high amid the backdrop of tariffs imposed by the US on various imports from the EU. Both sides are under pressure to reach a mutually beneficial agreement as the situation develops.