U.S. Pulls Out Of Global Corporate Tax Deal

President Donald Trump has declared that the global corporate minimum tax deal "has no force or effect" in the U.S., effectively withdrawing the nation from the landmark 2021 arrangement negotiated by the Biden administration with nearly 140 countries. David Lawder and Dan Burns reported this for Reuters.

Former Treasury Secretary Janet Yellen brokered the deal in October 2021 after years of stalled negotiations on global tax reform hosted by the Paris-based OECD. I Photo: G7 Facebook

In a presidential memorandum issued hours after taking office, Trump directed the U.S. Treasury to prepare "protective measures" against countries that have enacted—or are likely to enact—tax rules affecting U.S. companies.

While the European Union, Britain, and other countries have adopted the 15% global corporate minimum tax, the U.S. Congress did not pass measures to align with the agreement.

The U.S. currently enforces a roughly 10% global minimum tax, part of Trump’s 2017 tax cut package. However, countries adopting the 15% tax may now be in a position to collect a "top-up" tax from U.S. companies paying a lower rate, which Trump's memorandum referred to as "retaliatory."

Former Treasury Secretary Janet Yellen brokered the deal in October 2021 after years of stalled negotiations on global tax reform hosted by the Paris-based OECD.

Trump’s Treasury nominee, Scott Bessent, called the agreement a "grave mistake," particularly concerning its provisions to share taxing rights with countries where multinational companies’ products are sold.