European Union member states are escalating their dispute over how to fund a proposed €2 trillion budget, with negotiations centering on controversial new revenue streams including digital services and tobacco taxes.
The push for fresh fiscal tools has deepened political divisions within the bloc, as governments struggle to agree on both the allocation of funds and the mechanisms to raise them.
President Donald Trump has previously threatened to impose a 100% tariff on imports from any country that levies a digital services tax on American companies.
The debate comes at a sensitive time for transatlantic trade relations.
President Donald Trump has previously threatened to impose a 100% tariff on imports from any country that levies a digital services tax on American companies.
This warning, issued via Truth Social, specifically targets European nations considering such measures, adding a layer of geopolitical risk to the EU's internal fiscal planning.
The proposed spending plan, which Bloomberg reported would total €1.8 trillion, has sparked significant friction among member states.