The proposal comes as Chancellor Friedrich Merz is expected to travel to Washington soon to meet with U.S. President Donald Trump, although a trip has not yet been officially announced. Trump has in the past said he will not allow foreign governments to “appropriate America’s tax base for their own benefit”.
“These corporations do billions in business in Germany with extremely high profit margins and benefit enormously from the country’s media and cultural output as well as its infrastructure — but they pay hardly any taxes, invest too little, and give far too little back to society,“ he told Stern in an interview published on Thursday.
Germany’s ruling parties agreed in a coalition deal earlier this year to impose such a digital services levy.
During Trump’s first term, the U.S. Trade Representative’s office launched a Section 301 investigation into unfair trade practices against several of these countries, finding they discriminated against U.S. companies, paving the way for retaliatory tariffs on certain imports.
That does not, however, appear to have deterred the new German government, which took office earlier this month.
“If Google, under pressure from Donald Trump, unilaterally renames the Gulf of Mexico to the Gulf of America— and simply decrees this due to its enormous power to shape meaning in global communication — then we can see the kinds of problems that lie within the current structures,“ he said.
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