Germany is advancing plans to impose a 10% levy on major digital platforms like Google and Meta, Culture Minister Wolfram Wömer confirmed, despite looming threats of U.S. retaliation. The proposal—currently being drafted into legislation—aims to counter what Wömer called “systematic tax avoidance” by American tech firms operating in Germany. “These companies profit from our infrastructure and cultural resources while contributing almost nothing,” he stated, noting the sector’s “near-monopolistic” dominance threatens both competition and free speech.
The move risks inflaming tensions with Washington, coming just as Chancellor Merkel prepares for high-stakes talks with President Trump. The U.S. has already launched “Section 301” investigations against other nations with digital taxes, including France and Italy, and threatened retaliatory tariffs. Trump has vowed to block foreign taxation of U.S. tech revenues, calling such measures “exploitation of our tax base.”
Germany joins a growing list of countries defying U.S. pressure, with the UK, Canada, and India already implementing similar taxes. Berlin’s coalition government had pledged the measure in its policy agreement, signaling readiness for a confrontation. Wömer hinted at potential compromises like voluntary corporate donations but emphasized the need for structural reform. The standoff could derail fragile EU-U.S. trade negotiations, with tech taxation emerging as a new flashpoint in transatlantic relations.
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