Germany Proposes Digital Tax on US Tech Giants, Straining Transatlantic Relations

Germany is advancing plans to impose a digital tax on global internet companies, with a focus on US tech giants like Google and Meta. Wolfram Weimer, Germany’s federal commissioner for media and culture, revealed that the government is evaluating both mandatory levies and voluntary contributions from these firms. The move, embedded in Chancellor Friedrich Merz’s coalition agreement, aims to redirect funds to bolster Germany’s media sector.

The proposal risks escalating tensions with the US, where former President Donald TRUMP has repeatedly accused the EU of unfair treatment of American companies. A formal tax could further strain transatlantic trade relations, particularly if perceived as targeting US firms disproportionately.

Weimer emphasized the government’s seriousness, noting direct outreach to tech leaders for alternatives. "We are exploring voluntary commitments," he stated, underscoring the preference for negotiated solutions over unilateral measures. The outcome may set a precedent for how Europe regulates—and monetizes—the digital economy.