EU Weighs Broad Corporate Charge Amid U.S. Digital Tax Threat

Brussels is weighing how to structure a broad corporate contribution that could affect large U.S. technology companies while reducing the risk of a trade response from Washington over digital taxation.

The proposal, known as the Corporate Resource for Europe, or CORE, would require companies operating and selling in the European Union to make an annual lump-sum payment if they have at least €100 million in net annual turnover. Small and medium-sized businesses would be excluded.

CORE is projected to raise about €6.8 billion annually on average during the bloc’s proposed 2028–2034 budget period, measured in 2025 prices. Five proposed new revenue sources together are projected to generate about €58.5 billion per year.

CORE is structured as a charge applying broadly to large companies rather than only technology businesses. The relationship between that proposal and the reported discussion about possible changes remains unclear, and no final redesign has been confirmed.

The policy debate comes after President Donald Trump threatened a 100% tariff on goods from countries that impose digital-services taxes on U.S. companies.

“Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America,” Trump wrote in a June 26, 2026, Truth Social post.

The proposed new EU revenue sources would begin Jan. 1, 2028, if approved. The plan is part of the bloc’s next long-term budget and does not represent an enacted tax.

Adopting the budget requires unanimous approval by EU member states in the Council and consent from the European Parliament. Some revenue measures also require approval under national constitutional procedures.

European Commission President Ursula von der Leyen said, “Our new long-term budget will help protect European citizens, strengthen Europe’s social model and make our European industry thrive.”

No final levy rate, payment schedule, legislative text or adoption date has been confirmed beyond the proposed Jan. 1, 2028, start for the new revenue sources.