Trump Threatens Global Tax Agreement Withdrawal

President Trump has announced intentions to exit an international agreement designed to combat tax avoidance by multinational companies, which involves 139 countries mandating a minimum 15% tax rate. The U.S. administration plans to draft a list of punitive measures against countries adhering to the tax treaty within two months.

Economists warn this could undermine global efforts to prevent companies from avoiding taxes. The White House argues the global tax rules diminish U.S. competitiveness and sovereignty.

Trump’s stance is part of his broader agenda to prioritize American interests. Experts highlight that the complexity of the tax agreement and the administrative burden it imposes on governments conflict with Trump’s aim for a streamlined government.

While other participating countries remain committed, the full implementation of the treaty is incomplete. Concerns arise that countries imposing taxes on U.S. companies may face retaliation from the U.S. The withdrawal weakens global efforts against tax evasion, potentially stalling progress in other nations.

Economists fear a trade war, with possible U.S. tariffs on European goods if the EU persists with the tax agreement. However, some experts see Trump’s aggressive tactics as a negotiation strategy.

Source: NOS

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