Core Viewpoint - Trump's recent threats regarding digital taxes could destabilize the "Two-Pillar" framework, leading to increased uncertainty and potential backlash from affected countries [1][2]. Group 1: Digital Tax and U.S. Companies - Digital taxes are primarily aimed at U.S. tech giants like Apple, Amazon, Facebook (Meta), and Google, with bipartisan opposition in the U.S. against such taxes being viewed as discriminatory [2][3]. - Trump's strong stance against digital taxes includes potential tariffs and export restrictions, particularly targeting the EU's upcoming Digital Markets Act [2][3]. Group 2: International Taxation and the "Two-Pillar" Framework - The digital tax issue reflects a broader competition over taxation rights among nations, as traditional tax rules fail to address the profits of digital companies operating across borders [4][5]. - The G20 has tasked the OECD with designing the "Two-Pillar" framework to address these challenges, aiming to reshape international tax rules to prevent unilateral tax measures like digital service taxes [4][5]. Group 3: U.S. Government's Position - The Biden administration supports the "Two-Pillar" framework, emphasizing the importance of a global minimum tax rate of 15% to prevent tax competition [6][7]. - The U.S. has made commitments to the "Two-Pillar" framework, including a requirement for countries to abolish digital service taxes in exchange for benefits under Pillar One [7][8]. Group 4: Political Challenges and Reactions - The Biden administration faces domestic opposition, particularly from Republican lawmakers who argue that the U.S. has compromised too much on Pillar One and that the global minimum tax infringes on U.S. tax rights [8][9]. - Trump's withdrawal from international tax negotiations has led to a resurgence of interest in unilateral digital service taxes among other countries, as they may feel compelled to act independently if consensus is not reached [9][10]. Group 5: European Response - The EU has firmly rejected Trump's threats regarding digital service taxes, asserting its sovereign right to regulate U.S. companies within its jurisdiction [10][11]. - The EU's commitment to digital service taxes remains strong, with plans to enhance regulatory measures despite U.S. pressure [10][11].