EU digital services tax defended amid Trump threats

European Parliament member Brando Benifei said the United States threatened the European Union with consequences if the bloc kept its digital services tax. The tax, introduced to curb tax avoidance by large digital companies, especially American firms, remains in force. Benifei rejected the warnings from the White House, defending the existing EU measures that target profit shifting and reduced taxable revenue of multinational tech firms. The statements were made in Brussels.

The dispute highlights ongoing tensions between the EU’s effort to tax digital revenues and U.S. opposition to what it sees as discriminatory fiscal policy against American tech giants.