The European Union has raised urgent concerns about provisions in President Trump’s “Big Beautiful Bill” that could impose retaliatory taxes on European companies, marking a new escalation in transatlantic trade tensions. European Parliament officials warn the legislation, passed by the House last month, contains special taxes targeting jurisdictions that tax US companies – potentially subjecting EU firms to higher rates. The dispute centers on Section 899, which analysts describe as a preemptive strike against potential European countermeasures in the ongoing tariff war.
Fudan University’s European Studies Center director Ding Chun notes the bill reflects Trump’s strategy to fund his “America First” agenda by targeting foreign companies. While the EU faces vulnerability due to its trade surplus with the US, experts point to Europe’s leverage in agricultural tariffs and precision manufacturing exports that America’s reindustrialization drive depends on. The European American Chamber of Commerce warns the legislation could significantly impact non-US firms through new withholding taxes on dividends, interest payments and royalties that may bypass existing treaty protections.
As negotiations continue, Peking University’s Professor Duan Demin observes European leaders walking a tightrope – seeking to avoid damaging escalation while preparing countermeasures. “The EU doesn’t want tensions to spiral,” Duan notes, “but must demonstrate capacity to respond if pushed.” The standoff highlights growing economic nationalism on both sides of the Atlantic, with the EU increasingly forced to reconcile its preference for multilateralism with Trump’s transactional approach to international trade.
Related Topic:
- TruTravels Offers 20% Off 2025 Group Tours
- AAT Kings Launches Intimate Small Group Tours for Deeper Travel Experiences
- Fiji Airports, TSLS Partner to Streamline Student Guarantor Clearances at Nadi
