Scott Bessent Hails 'Historic Victory' As US Firms Win Exemption From Global Tax Deal After Trump Negotiations

In a landmark decision announced on Monday, the U.S. has been exempted from a global tax deal that aims to curb profit shifting by large multinational companies.

G7 Pact Shields US Multinationals

Finalized by the Organization for Economic Cooperation and Development (OECD), the deal exempts major U.S. multinational corporations from the 15% global minimum tax, following negotiations between the Trump administration and other G7 members.

This decision has been hailed as a “landmark decision in international tax cooperation” by the OECD secretary-general, Mathias Cormann.

Meanwhile, U.S. Treasury Secretary Scott Bessent has described the deal as “a historic victory in preserving US sovereignty and protecting American workers and businesses from extraterritorial overreach.”

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Trump Administration Slams Global Minimum Tax Deal

The latest iteration of the deal undermines a key 2021 agreement that set a global minimum corporate tax of 15%. That agreement aimed to stop multinational companies, including Apple (NASDAQ:AAPL) and Nike (NYSE:NKE), from shifting profits to low- or no-tax jurisdictions like Bermuda and the Cayman Islands through accounting and legal strategies.

The OECD’s global minimum corporate tax has been a topic of intense debate and negotiation. The organization finalized the guidance for implementing the new tax in 2023, with the expectation of an additional $220 billion in income.

President Donald Trump blasted the 2021 agreement brokered by the Biden administration, arguing it did not apply to the United States. His administration later warned of retaliatory taxes against countries that sought to tax U.S. companies under the deal.

Despite the global consensus, the U.S.’s exemption from this tax deal is a significant development, reflecting the influence of the Trump administration’s negotiations. This move could have far-reaching implications for international tax cooperation and the global economy.

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