European Commission weighs broad levy on large corporations to sidestep US tariff threats

The European Commission needs new money for its next long-term budget. It would also like to avoid a tariff war with Washington. What Brussels is considering The Commission is deliberating a charge on all large companies with annual EU revenues above €100 million. Sector would not matter. The levy would reportedly take the form of a lump-sum contribution. It would not be a tax tailored to digital services, online platforms or any other single industry. The goal is to create new revenue streams for the EU budget. Those discussions are tied to talks over the 2028–2034 Multiannual Financial Framework, the bloc’s seven-year spending plan. The idea surfaced in discussions reported on October 7, 2026. No formal proposal has been tabled yet, so this remains a plan under consideration rather than a done deal. The Washington problem The reason for the design is fairly transparent. The Trump administration has threatened tariffs of up to 100% on countries that impose digital services taxes, known as DSTs. A DST is essentially a levy on revenue earned from online activities like advertising, marketplaces and user data. Because the largest players in those markets are US companies, Washington ...