US pulls out of talks to tax tech giants in a blow to Europe’s plans.

A number of European countries were hoping to impose taxes on digital companies above a certain revenue threshold, which would hit mainly U.S. tech firms given their size.

The United States has shocked Europe by pulling out of negotiations over an international digital tax and threatened to retaliate if the region moves ahead with plans on its own. A number of European countries were hoping to impose taxes on digital companies above a certain revenue threshold, which would hit mainly U.S. tech firms given their size.

However, according to the Financial Times, in a letter to France, Italy, Spain and the U.K., the U.S. said international talks had reached an impasse and there wasn’t even room for an interim deal. The move effectively ends any chance of a deal soon.

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