Posted originally on CTH on July 24, 2026 | Sundance

Most casual EU observers have missed the connection between President Trump eliminating the U.S-Europe Marshall Plan via entirely new trade and tariff policies, and the aggregate financial collapse of the European Union.

Over four years (1948-1952), the United States provided $13.3 billion (equivalent to approximately $137 billion in 2025) directly to 17 Western European countries, including the United Kingdom, France, West Germany, Italy, and the Netherlands. The intent was to rebuild Europe after World War II. However, included in the plan was a later system of one-way tariffs, where EU Countries would high-tariff U.S. goods and the U.S. would not tariff EU goods imported.

The direct funding ended in 1952, but the indirect funding via tariffs never ended until President Donald J Trump triggered reciprocal tariffs against Europe thereby removing the one-way benefit. This created an immediate and growing problem for Europe – particularly noted in the EU industrial base.

Simultaneous to this EU tariff reset, President Trump levied tariffs against China. To offset the possibility of economic losses, and specifically to fund Beijing’s subsidies to impacted Chinese manufacturing, China stopped purchasing European industrial machines. [That’s the source of the picture above at the G7 in Canada]

This trade and tariff approach hit Europe twice as hard. First from American tariffs and second from diminished Chinese industrial purchasing. Immediately, Europe started looking for alternate sources of funds. That’s where the idea to tax American tech companies entered the discussion in Brussels. Today, President Trump addressed this directly.

TRUTH SOCIAL – “The European Union is at it again and, as usual, taking direct aim at GREAT American Companies! After having fined Apple, for no reason at all, 15 Billion Dollars, Meta, 3 Billion Dollars, Amazon 2.5 Billion Dollars, and many others, we have just been informed that Google, a truly advanced and amazing group, has been fined yet another 1 Billion Dollars, without explanation. This brings the Google total to over 18 Billion Dollars!

This illegal and highly discriminatory practice started at these high levels during the first year of the Sleepy Joe Biden Administration, but it’s not going to continue during the Trump Administration. The United States of America is not a “PIGGYBANK” for Europe, nor will we allow it to be! Please let this TRUTH serve to represent that we will immediately initiate a 301 Investigation into the practice of “ROBBING” American Companies and, in turn, the American Taxpayer.

The European Union will pay a very big price for this illegal and highly unethical conduct, which I have consistently warned them about. The penalties will be entirely reversed and, we anticipate, a substantial TARIFF to be placed on them at the earliest possible moment. Stay tuned!”

~President DONALD J. TRUMP

Keep in mind, all of this EU regulatory and compliance control is at the forefront of another element, the AI race.

In the USA we do not want a singular AI model to win support of the United States government and then end up with an AI regulatory system where the govt can start defining terms of “safety” to eliminate information adverse to the interests that regulate it.  However, we can almost guarantee that Europe will select an approved singular AI model, predictably regulating it and taxing the use of it accordingly.