Victory for Trump as EU backs down on digital taxes in next budget

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The Fee will suggest an EU-wide levy on tobacco merchandise corresponding to cigarettes and cigars. These items are at present being taxed by particular person international locations, who preserve the revenues for themselves.

<img decoding="async" width="1024" height="683" src="https://www.politico.eu/wp-content/uploads/2025/07/11/12584706-1-1024x683.jpg" alt="" class="wp-image-6900792" srcset="https://www.politico.eu/cdn-cgi/image/width=1024,quality=80,onerror=redirect,format=auto/wp-content/uploads/2025/07/11/12584706-1.jpg 1024w, https://www.politico.eu/cdn-cgi/image/width=300,quality=80,onerror=redirect,format=auto/wp-content/uploads/2025/07/11/12584706-1.jpg 300w" sizes="(max-width: 1024px) 100vw, 1024px"/> The EU's thought comes amid a push to introduce new taxes on e-cigarettes and vapes which might be opposed by Italy, Greece and Romania. | Tolga Akmen/EPA

The EU's thought comes amid a push to introduce new taxes on e-cigarettes and vapes which might be opposed by Italy, Greece and Romania.

Whereas not opposing the proposed new taxes, Sweden mentioned that handing a part of its nationwide revenues to the EU is “fully unacceptable.”

The Fee additionally suggests taxing discarded electrical gear.

Wednesday’s proposal is predicted to additionally affirm proposals from 2021 to levy a carbon border tax ― a well-liked thought amongst international locations ― and a take share of the revenues generated by the emissions buying and selling scheme (ETS).

This concept is politically delicate amongst Jap European international locations who're most affected by ETS.

In a concession to critics, the Fee steered that solely a small share of ETS revenues will move to the EU price range, whereas the remaining would stick with nationwide governments. It added {that a} controversial plan to increase the scheme to buildings and highway transport ― referred to as ETS2, which is able to come into power in 2027 ― received’t be funneled into the EU price range.

Nationwide governments should unanimously approve the brand new taxes over two years of fraught negotiations that can begin after the Fee makes its proposal.