Weezha Roz-The new President of the United States, Donald Trump, has ordered retaliatory measures against countries imposing “extraterritorial” taxes on US multinational companies.
This decision, announced in an executive order on Monday night, signifies the United States’ withdrawal of support from the global tax agreement reached last year at the Organisation for Economic Co-operation and Development (OECD).
Under this agreement, other countries can impose additional taxes on US multinational companies.
Trump has stated that a “list of options for protective measures” should be prepared “within 60 days,” warning signatories to the OECD agreement—including EU member states, the UK, South Korea, Japan, and Canada—that the US intends to challenge global tax rules further.
During his presidency, Trump clashed with European leaders over proposed digital taxes that would affect major US tech companies like Alphabet (Google’s parent company) and Apple. At times, he even threatened to impose tariffs on France.
Trump’s executive order includes an investigation into whether foreign countries comply with any tax treaties with the US or whether they have tax rules that may disproportionately affect American companies.
Weezha Roz
