According to Politico, the European Commission has abandoned its plan to tax digital companies, marking a significant victory for U.S. President Trump and American tech giants like Apple (AAPL.O) and Meta Platforms (META.O). Documents show that as U.S.-European trade negotiations enter their final stages, Brussels has removed the digital tax option from its seven-year financial plan launched in 2028. Senior EU officials are in critical negotiations regarding the budget plan, with only a few days left before the budget proposal is announced. This policy shift represents a major change for the EU—back in May, budget documents discussed by the 27 EU commissioners mentioned the idea of taxing tech giants to repay the EU's debt. This sudden turn may be a strategic move by the EU, which is eager to secure favorable trade terms with the U.S., especially since Trump had previously threatened to impose retaliatory tariffs on Canada in response to its digital tax policy.