Germany plans 10% tax on tech giants, risking new clash with Trump

Germany is preparing to impose a 10% tax on large online platforms such as Alphabet’s Google and Meta’s Facebook, a move likely to escalate trade tensions with the United States under President Donald Trump, as per reports.

The proposed digital services tax was confirmed by Germany’s newly appointed culture minister, Wolfram Weimer, in an interview with Stern magazine published Thursday. The plan targets the sales revenue generated by big tech platforms within Germany, which Weimer accused of "cunning tax evasion" and failing to contribute meaningfully to the country's cultural and economic infrastructure.

“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,” Weimer said.

The move aligns with the German coalition government’s earlier commitment to introduce a digital services levy. Germany would join a growing list of countries including France, Italy, Spain, India, and Canada that have implemented similar taxes on U.S. tech firms. The proposal is being drafted alongside outreach to affected platforms to explore voluntary alternatives, such as financial contributions to Germany’s media ecosystem.

Alphabet and Meta have not yet responded to requests for comment.

The timing of the proposal is notable. Chancellor Friedrich Merz is expected to visit Washington soon for talks with President Trump, though the trip has not been formally announced. Trump has repeatedly denounced foreign digital taxes, arguing they unfairly target American companies. During his first term, Trump’s administration launched a Section 301 investigation into countries adopting such levies, ultimately threatening retaliatory tariffs.

In February, Trump directed his trade chief to revive these investigations, signaling a renewed hardline stance against digital service taxes. Despite this, Germany’s new government appears undeterred.

Weimer also raised broader concerns about the power held by major digital platforms, warning that companies like Google are forming "monopoly-like structures" that restrict competition and centralize control over media narratives. He cited a hypothetical example of Google unilaterally renaming the Gulf of Mexico as the "Gulf of America" to illustrate the dangers of unchecked platform dominance.

"This shows the kind of problem we face when global communication is shaped by a handful of corporations with little oversight," Weimer said.

The proposal is likely to be closely watched in both Berlin and Washington as geopolitical and digital policy tensions continue to mount.