European nations dismiss retroactive tax proposals.

European nations dismiss retroactive tax proposals.

European nations have largely dismissed the retroactive tax proposals put forth by the United States. The White House, under the administration of President Donald Trump, has been pushing for trade deals and tax relief in exchange for the removal of digital service taxes and minimum foreign tax rates on American goods and services. However, these proposals have met significant resistance from European countries.

The "revenge tax" proposed by the US aims to target nations that impose digital service taxes on major American tech companies. Countries like Canada, Australia, the United Kingdom, France, and others have been particularly affected by this measure. The US Congress is currently reviewing Trump's tax bill, which includes this controversial provision, with a push to pass it by July 4. However, the likelihood of this happening remains uncertain due to ongoing debates over the bill's provisions [1].

The European Union, in response to the US tariffs, has suspended its planned tariffs on selected US goods and proposed setting zero tariffs on all industrial products for both sides. Despite these efforts, negotiations have made little progress, and the stalemate has deepened to the point where Trump has threatened to impose 50% tariffs on EU goods starting June 1 [1].

Portugal, among other European nations, has also been tightening its citizenship and residency rules. The country has doubled the minimum period of legal residency required for most foreigners to apply for citizenship, extending the current five-year rule to 10 years for most applicants. This move is part of a broader set of changes to Portugal’s immigration and naturalisation laws, which also include new criteria related to integration and public safety [2].

Germany, Finland, Italy, and the United Kingdom have also implemented stricter citizenship and residency rules. Germany ended its fast-track citizenship route, Finland increased its residency requirement from five to eight years, Italy narrowed its citizenship-by-descent rules, and the United Kingdom introduced new guidance that makes it "extremely unlikely" for individuals who entered illegally to be granted citizenship [2].

These developments underscore the ongoing tension between the US and European nations over trade and tax policies. While the US continues to push for trade deals and tax relief, European nations are implementing stricter immigration policies and dismissing retroactive tax proposals, indicating a reluctance to comply with the US's demands.

References:
[1] https://newsukraine.rbc.ua/news/usa-offers-trade-deal-or-revenge-tax-to-global-1750884435.html
[2] https://www.business-standard.com/immigration/portugal-joins-european-countries-in-tightening-citizenship-pathways-germany-italy-immigrants-125062400493_1.html