According to Politico, the European Commission has abandoned plans to tax digital companies, a move that marks a major victory for US President Trump and US tech giants such as Apple and Meta Platforms. Documents show that as EU-US trade negotiations enter the final sprint, Brussels has removed the digital tax option from its seven-year fiscal plan starting in 2028. The EU is in key negotiations on the budget plan, with only a few days left before its announcement. This is a major shift for the EU. The budget document discussed by the 27 EU commissioners in May also mentioned the idea of repaying EU debt by taxing tech giants. This sharp turn may be a strategic move by the EU. The EU is eager to obtain favorable trade terms with the United States, and Trump has previously threatened to impose retaliatory tariffs on Canada to counter its digital tax policy.