European officials are drafting a new “Corporate Resource for Europe” (CORE) proposal that would require any company earning more than €100 million a year in the bloc to pay a lump‑sum contribution each year. The levy, which would range from €100,000 to €750,000 per firm, is intended to capture a broader slice of multinational earnings than the current model, which only extracts a modest amount from the largest players.
Why the EU is expanding the tax base
According to six sources familiar with the discussions, the European Commission wants to avoid a targeted digital tax that could provoke diplomatic friction. Instead, the revised CORE plan would apply to “pretty much all the big companies,” including U.S. giants such as Apple, Meta and Google, as well as large European firms. An EU official told the Financial Times that some member‑state capitals fear a pure digital tax would upset American partners, while many others oppose the current CORE framework because it does not generate sufficient revenue.
U.S. response under President Trump
President Trump has made clear his administration’s willingness to defend American businesses. In June, he threatened a 100% tariff on all goods from any country that imposes a digital services tax on U.S. companies. The U.S. Trade Representative’s office has repeatedly warned European nations that such levies discriminate against American firms, which dominate the global technology sector.
From the administration’s perspective, the threat of steep tariffs is a legitimate tool to protect U.S. economic interests and to ensure a level playing field for American innovators. By signaling a willingness to act decisively, the Trump administration aims to deter foreign policymakers from adopting measures that could harm U.S. competitiveness.
Potential impact on businesses and consumers
If adopted, the expanded CORE levy could generate additional revenue for the EU budget, helping fund public services and infrastructure projects across member states. However, critics argue that the added cost may be passed on to consumers in the form of higher prices for goods and services.
Industry groups such as the Computer & Communications Industry Association (CCIA), which represents several U.S. tech firms, have not yet commented on the proposal. The European Commission, Apple, Google and Meta also declined to provide immediate statements.
What this means for the transatlantic relationship
The ongoing debate underscores the delicate balance between European fiscal ambitions and American trade policy. While Brussels seeks a fair contribution from corporations that benefit from the single market, the Trump administration is prepared to use trade leverage to protect U.S. companies from what it views as discriminatory taxation.
Stakeholders on both sides will be watching closely as the EU finalizes its proposal and as Washington decides whether to follow through on its tariff warnings. The outcome could shape the future of digital commerce, cross‑border investment, and the broader economic partnership between the United States and Europe.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
