The idea is still a long way from taking effect. But
a global corporate tax could potentially resolve
another dispute between Washington and
Europe: Several European countries, frustrated
that big tech companies are so deft at avoiding
taxes, have imposed digital services taxes
aimed at American companies such as Google
and Apple.
Calling the taxes unfair, the U.S. has prepared
tariffs in retaliation. But a global tax rate that
hits a broader range of multinationals could
defuse the issue by raising tax revenue without
discriminating against U.S. companies.
Washington and its European trading partners
remain sharply at odds over Trump’s 2018 steel
and aluminum tariffs. What the Europeans found
especially galling was the justification for the
import taxes: Trump declared the foreign metals
a threat to U.S. national security, even though
many of the countries hit hardest by the levies
were America’s NATO allies.
What’s more, the tariffs did not directly address
the biggest problem that steel and aluminum
manufacturers face: Vast overproduction from
China keeps global metals prices lower than
they would otherwise be.
Despite pledging to mend relations with Europe,
Biden has so far kept the Trump tariffs in place.
They are popular with American trade unions
and metals manufacturers in the U.S. Midwest,
a region politically crucial to Biden and his
Democratic Party.
Still, in a goodwill gesture last month, the EU
agreed to suspend plans to escalate tariffs
against U.S. products in the metals dispute. And
in a joint statement, the two sides said they