US Treasury chief urges EU to address digital tax disparities ahead of trade talks

US Treasury Secretary Scott Bessent has emphasized that the European Union must first address internal disagreements and form a unified position before engaging in meaningful trade negotiations with the United States.

Speaking to reporters at the White House, Bessent pointed to the inconsistent application of digital services taxes across EU member states as a key obstacle, Caliber.Az reports citing Russian media.

"Some European countries have imposed an unfair tax on digital services for one of our largest Internet providers. France and Italy and a number of other countries have done it, and Germany and Poland have not," Bessent stated.

He stressed that the existence of such divergent policies undermines the potential for cohesive transatlantic trade discussions. “So here we want this unfair tax […] to be abolished. It will be a compromise. [EU countries] need to solve some internal issues first before they can participate in external negotiations [with the US],” the Treasury chief added.

The digital services tax, introduced by several EU nations, primarily targets major US tech firms, and has been a point of contention between Washington and Brussels for several years. While some countries argue that the tax ensures fair taxation of digital revenues within their borders, the US views it as discriminatory and contrary to the principles of international trade.

Bessent noted that the lack of alignment within the EU makes it difficult to negotiate a fair and comprehensive trade deal, as any potential agreement would require consensus among all 27 member states.

In the meantime, Bessent said his focus remains on advancing trade dialogues in Asia. "I’m currently more involved in trade negotiations with Asian countries," he said, signaling a strategic pivot in US trade policy amid growing geopolitical and economic interests in the Indo-Pacific region.

On April 2, President Trump announced the imposition of customs duties on products from 185 countries and territories. The universal 10 per cent tariffs took effect on April 5, followed by sector-specific duties on April 9. For all European Union member states, the duties were set at 20 per cent. Additionally, the US administration introduced a 25 per cent customs tariff on all imported vehicles, effective from April 3.

On April 8, President Trump emphasized that US tariffs on imported goods are generating $2 billion in revenue daily. He further noted that the US is engaged in trade negotiations with over 70 countries seeking to export their goods to the American market.

By Vafa Guliyeva