The European Union (EU) has raised serious concerns over a provision in the US Spending Bill dubbed the ‘Big Beautiful Bill’ by President Donald Trump, which could impose a tax of up to 20% on the income of foreign investors in the US.
According to EU MEP Markus Ferber, the provision is seen as retaliation against countries that tax US technology companies, including EU member states that have implemented a Digital Services Tax and a global minimum tax of 15% as agreed by the Organisation for Economic Co-operation and Development (OECD).
The legislation, which was approved by the US House of Representatives, is still under negotiation between Washington and Brussels as part of efforts to resolve a trade dispute that has raged since March.
The US has already imposed tariffs of 50% on steel and aluminium from the EU, 25% on vehicles, and 10% on all other imports from the bloc.
In response, the EU has prepared countermeasures worth around €115 billion that are currently suspended until July, or are still awaiting approval by member states.
Ferber also confirmed that the European Commission has raised the tax issue in tariff negotiations with the Trump administration, but has not received confirmation whether it will be formally discussed.
