Trump Withdraws U.S. from Global Tax Deal

In a sweeping move, President Trump declares the global corporate minimum tax deal as non-binding in the U.S., pulling out from the international agreement. The decision reignites potential trade tensions and disrupts international efforts to strengthen corporate tax regulations.

President Donald Trump has decisively withdrawn the United States from the global corporate minimum tax deal, dismissing the 2021 arrangement as having no binding relevance in the U.S. His administration has compelled the Treasury to explore protective measures against nations implementing tax policies that unfavorably impact American businesses.

Despite the European Union and Britain adopting the 15% minimum, the U.S. Congress has yet to align, maintaining a 10% minimum from Trump's 2017 tax overhaul. This discrepancy places U.S. companies at risk of facing additional taxes abroad, a move Trump categorizes as retaliatory.

The OECD negotiations, initiating a new tax-sharing framework, have faltered. Without U.S. involvement, some countries may reinstate digital taxes on American tech giants, prompting possible counter-tariffs.

(With inputs from agencies.)