Photo by Gage Skidmore: President of the United States Donald Trump dancing at the conclusion of a "Make America Great Again" campaign rally at Phoenix Goodyear Airport in Goodyear, Arizona.
In a significant win, President Trump’s administration has secured a deal exempting American businesses from the 15% global minimum tax. The OECD announced Monday that nearly 150 countries have agreed to the revised plan.
The Biden-era global minimum tax deal, spearheaded by Treasury Secretary Janet Yellen in 2021 under the OECD framework, effectively surrendered portions of the U.S. tax base by imposing a 15% floor on corporate taxes worldwide, allowing foreign governments to levy “top-up” taxes on profits earned by U.S.-based multinationals in low-tax jurisdictions if they fell below that threshold. This not only diverted potential revenue from the U.S. Treasury—where companies might otherwise repatriate earnings under favorable domestic policies—but also stifled global tax competition by discouraging nations from offering lower rates to attract investment and innovation. Critics argued that this one-size-fits-all approach eroded America’s competitive edge, forcing U.S. firms like Apple and Nike to face higher effective taxes abroad without the flexibility of profit-shifting strategies, ultimately benefiting high-tax European economies at the expense of American workers and economic growth.
Following negotiations with the G7, large U.S.-based firms are now excluded, regardless of their global operations. OECD Secretary-General Mathias Cormann described it as a “landmark decision in international tax co-operation” that enhances certainty and protects tax bases.
U.S. Treasury Secretary Scott Bessent called it “a historic victory in preserving U.S. sovereignty and protecting American workers and businesses from extraterritorial overreach.”
Congressional Republicans, who criticized the original Biden-era deal as harming U.S. competitiveness, praised the outcome. Senate Finance Committee Chair Mike Crapo, R-Idaho, and House Ways and Means Committee Chair Jason Smith, R-Mo., stated: “Today marks another significant milestone in putting America First and unwinding the Biden Administration’s unilateral global tax surrender.”
President Trump’s leadership has effectively prioritized American businesses in the international arena.
