Italy is prepared to negotiate with the incoming Trump administration to prevent possible retaliation against its digital services tax, Deputy Economy Minister Maurizio Leo said, according to Reuters.

Washington recently renewed calls for Rome to scrap the tax, which it claims unfairly discriminates against US tech giants such as Meta Platforms, Google, and Amazon.

“We will need to engage in dialogue with the Trump administration” regarding the tax, Leo told reporters on the sidelines of a parliamentary session.

In 2019, Italy introduced a 3% levy on digital companies with global annual revenues of at least €750 million ($786 million), provided that at least €5.5 million of that revenue was generated within Italy.

As part of the proposed 2025 budget, Italy’s finance ministry sought to remove these taxation thresholds, a move critics said would negatively impact smaller companies.

However, following pushback from the ruling Forza Italia party, the government plans to restore the original €750 million revenue threshold.

Economy Minister Giancarlo Giorgetti stated that expanding Italy’s digital tax to include smaller companies could help the government avoid a confrontation with the United States.