Poland defiant over big tech tax plan in latest spat with US

Reuters

11-03-2025

WARSAW, March 11 (Reuters) - Poland's deputy prime minister vowed on Tuesday to stick with plans to introduce a new tax on big tech, hitting back at a threat of retaliation from the incoming United States ambassador amid a deepening war of words between Warsaw and Washington.
United States President Donald Trump's policies on security and trade have shaken relations between Washington and its traditional allies in Europe, and an extraordinarily public social media spat over Ukraine between Washington and Warsaw's top diplomats over the weekend encapsulated the souring mood.
On Monday evening, the incoming U.S. ambassador to Poland Thomas Rose issued a fresh broadside to Warsaw, writing on X that plans announced by Deputy Prime Minister Krzysztof Gawkowski to impose a new tax on big tech companies were "not very smart".
"A self destructive tax that will only hurt Poland and its relations w/USA," Rose wrote. "President Trump will reciprocate as well he should. Rescind the tax to avoid the consequences!"
Asked during an interview with private broadcaster Radio Zet on Tuesday about Rose's comments, Gawkowski, a member of the Left party, which is a junior partner in Poland's coalition government, said it was "sick" for somebody to tell another country what legislation it can pass.
"This is standing democracy on its head," he added.
Polish Funds Minister Katarzyna Pelczynska-Nalecz, a member of another junior coalition partner, the centre-right Poland2050, questioned Gawkowski's plan to bring in the tax now.
She told state news channel TVP Info that while she thought that in general taxing big tech was a good idea the timing was "incomprehensible" given the risks of a trade war.
Gawkowski has given few details about the planned tax, but said it could target profits made by big tech firms in Poland and support the development of Polish tech companies.
The comments from Gawkowski, who also serves as minister of digital affairs, came after a dispute on Sunday between U.S. Secretary of State Marco Rubio, tech billionaire Elon Musk and Polish Foreign Minister Radoslaw Sikorski.
Rubio accused Sikorski of "making things up" and suggested he was ungrateful, after he suggested that Poland may need to look for a new provider of internet services for Ukraine if Elon Musk's Starlink becomes unreliable.
Poland pays for Ukraine's Starlink subscription.
On Monday Polish Prime Minister Donald Tusk also weighed in to the social media skirmish, cautioning Poland's "friends" against "arrogance" in a post on X.
Poland's nationalist opposition party Law and Justice (PiS) has criticised the government's approach, saying it is damaging relations with Poland's most important ally.