G7 Exempts US from Minimum Tax Deal, Eases Trade Tensions

The G7 agreement excludes U.S. firms from the 15% minimum tax on multinationals to avoid tariffs. This move aims to stabilize the international tax system and promote fair global taxation.

Jun 29, 2025 - 17:38
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G7 Exempts US from Minimum Tax Deal, Eases Trade Tensions

The G7 statement proposes a 'side-by-side system' excluding U.S. firms from minimum tax rules to stabilize the international tax system.

The EU and U.S. are in high-stakes trade talks before a July 9 deadline, with President Donald Trump threatening tariffs up to 50% on European goods.

The EU, Canada, Japan, and the U.K. agreed to exempt the U.S. from the 15% minimum tax on multinationals to avoid U.S. countermeasures.

The minimum tax, part of a 2021 global tax deal by the OECD, aims to create a fairer tax system but was never ratified by the U.S. Congress.

In return for the exemption, the U.S. will drop a 'revenge tax' against countries with 'discriminatory' levies on U.S. firms, easing foreign investment concerns.

Treasury Secretary Scott Bessent requested the removal of the protective measure from consideration in a recent bill.

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