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Can a global minimum tax survive Trump?

4 0
31.07.2025

(Photo by Win McNamee/Getty Images)

As the G7 exempts the US from the global minimum tax – otherwise known as Pillar 2 – experts are asking when a global tax stops being global? Say Tim Sarson

Last month I opened this column talking about an announcement from the German government about a proposal to cut their federal corporation tax rate. Unbelievably, the Germans have given us another important piece of news to talk about in just a matter of weeks after their Chancellor asked the EU to suspend implementation of the global minimum tax.

The G7 countries recently agreed to exempt US-parented corporations from the measure, known as Pillar 2, following months of pressure from the Trump administration and the threat of some retaliatory international tax measures in its so-called ‘One Big Beautiful Bill Act’.

The US government heralded this deal as a big victory. In the zero-sum thinking that’s taken hold of international politics in recent years, that must surely mean that somebody somewhere caved. The German Chancellor certainly seems to think so. He argued that the new cohabitation arrangement puts European businesses at a competitive disadvantage to their US counterparts. “The Americans have withdrawn, and........

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