Germany's Proposed Tax on Tech Giants Sparks US Trade Tensions

Germany is moving towards implementing a 10% tax on substantial online platforms such as Alphabet's Google and Meta's Facebook, according to the country's Culture Minister, Wolfram Weimer, as shared with Stern magazine. This proposed tax is expected to escalate trade tensions with the Trump administration.

The German Chancellor, Friedrich Merz, plans to visit Washington to meet with U.S. President Donald Trump, although official confirmation is pending. Trump has previously stated his opposition to foreign governments taxing American companies for their profit.

Weimer emphasized the need for these tech giants to give back to German society, highlighting their high profit margins and minimal tax contributions. While Alphabet and Meta have yet to comment, the proposition follows similar actions by other nations, potentially inviting retaliatory tariffs from the U.S. under Trade Representative investigations.

(With inputs from agencies.)