EU targets US 'Big Beautiful Bill' over tax provision in tariff talks
The EU is wrangling over a provision of Donald Trump's so-called "Big Beautiful Bill" for the US budget that could see European companies taxed higher than others in retaliation for certain taxes imposed on US enterprises overseas, the vice-chair of the European Parliament's tax subcommittee has told Euronews.
The German European People's Party MEP Markus Ferber said the European Commission has raised the proposed legislation—already approved by the House of Representatives—in ongoing tariff negotiations with the Trump administration.
'We are concerned because within this 'One Big Beautiful Bill' there are special taxes aimed at jurisdictions that impose taxes on the US,' Ferber told Euronews.
He added that jurisdictions like the EU, which have already implemented the OECD agreement establishing a global minimum tax of 15% on multinationals, are directly targeted.
'It could also affect member states that have introduced a digital services tax,' he noted.
The OECD agreement, approved by 140 countries - though as yet unratified by the US - introduced a global minimum tax of 15% on the profits of multinational companies, regardless of where those profits are declared, with effect from 1 January 2024. The EU has transposed the agreement into law and applies it to multinationals operating within the Union, to the ire of the Trump administration.
Meanwhile countries such as Denmark, Portugal and Poland have implemented digital services taxes targeting US tech giants, while others are in the process of creating one.
The US is now looking to retaliate against taxes it deems unfair through a provision of the "Big Beautiful Bill' which would hit foreign investors with a bump in US income tax by five percent points each year, potentially taking the rate up to 20%, in addition to existing taxes.
The Commission is concerned, officials said.
According to Ferber, the EU executive has put this provision of the US budget bill on the negotiating table. 'But we are not sure yet that the US agreed to put it in the basket,' the MEP said.
For several weeks, the EU and the US have been discussing a resolution to the trade dispute that has been ongoing since mid-March.
The US impose 50% tariffs on EU steel and aluminium, 25% on cars and 10% on all EU imports.
For its part, the EU has prepared countermeasures targeting around €115 billion worth of US products. These measures are either suspended until July or still awaiting approval by EU member states.
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