EU Targets Big Tech for Revenue, Rethinks Corporate Tax Amid US Tariff Threats

Brussels is revamping its strategy to extract more tax revenue from tech giants like Apple, Meta, and Google, proposing to expand a broad levy on all large corporations rather than a direct digital tax. The European Commission is currently considering significant changes to its 'Corporate Resource for Europe' (CORE) proposal. This move aims to bolster the EU budget by capturing a larger share from highly profitable companies without provoking a fierce trade backlash from the United States, which has consistently threatened tariffs against specific digital levies. The stakes are high as the EU seeks to secure new 'own resources' to fund its priorities, targeting approximately €60 billion annually from 2028. The original CORE proposal, introduced in July 2025, envisioned a modest lump-sum contribution from companies with over €100 million in annual EU revenue, a sum deemed insufficient for tech behemoths. The shift towards a broader corporate tax framework comes after the 2021 OECD global minimum tax deal, particularly Pillar One, largely stalled following Donald Trump re-election in 2024, leaving the EU to devise its own revenue solutions. Meanwhile, President Trump has repeatedly warned of 100% tariffs on European imports if individual countries or the bloc impose taxes perceived as discriminatory against US tech firms. Looking ahead, the success of this refined CORE proposal hinges on overcoming internal disagreements among EU member states, a majority of whom currently oppose the existing framework. Changes would require unanimous approval from all 27 nations. Observers will be watching for the precise thresholds and contributions Brussels proposes, and crucially, how Washington reacts to a 'sector-neutral' levy that, while not explicitly digital, is clearly designed to increase tax contributions from dominant US technology companies. The outcome will shape not only the EU fiscal future but also the delicate balance of transatlantic trade relations.