The Trump administration announced on Monday that changes have been made to a major global economic agreement that will exempt U.S.-based companies from sweeping taxes.
The development “represents a historic victory in preserving U.S. sovereignty and protecting American workers and businesses from extraterritorial overreach,” Treasury Secretary Scott Bessent said in a statement marking Washington’s latest move to reform tax policy.
The revised Organization for Economic Co-operation and Development agreement excludes U.S.-based multinational corporations from the 15% global minimum corporate tax, which was set into motion under the Biden administration in 2021.
The Trump administration criticized former President Joe Biden’s “global tax plan,” saying the updated agreement recognizes “the tax sovereignty of the United States over the worldwide operations of U.S companies and the tax sovereignty of other countries over business activity within their own borders.”
Bessent said the more than 145 countries in “the OECD/G20 Inclusive Framework” had agreed to negotiations that spare American companies from following “Pillar Two” of the 2021 deal, which entails the 15% tax. U.S. businesses must still be in compliance with Pillar One, which largely concerns the reallocation of some taxing rights from a company’s home country to the countries where its customers or users are located.
The latest development with OECD comes as President Donald Trump has made tax policy a key tenet of his agenda.
His administration pushed for the extension of the president’s signature 2017 tax cuts in the One Big Beautiful Bill Act, as well as tax carveouts on overtime, tip wages, and Social Security. The Trump administration also successfully sought the removal of a policy that would have allowed Washington to implement a so-called revenge tax on certain foreign investors.
But going into the 2026 elections, which promise to shed some light on how voters view Trump’s policies, critics say he isn’t doing enough to lower taxes and increase affordability.
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“Almost every Trump voter I see on X is so fed up they are planning a 2026 tax revolt. And rightfully so!” Rep. Marjorie Taylor Greene (R-GA) recently said in a post to X.
“It’s because Americans work their asses off, barely make ends meet, and the government consistently gives their hard-earned tax dollars to foreign countries, foreign wars, and foreigners the U.S. government has brought/allowed into America!” she added.
