Trump issues memorandum pulling the U.S. out of global corporate minimum tax deal

By lauraharris // 2025-02-03

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President Donald Trump issued a memorandum pulling the U.S. out of the 2021 Global Corporate Minimum Tax deal, citing concerns about foreign tax practices affecting American companies.
The U.S. currently has a 10 percent global minimum tax rate, lower than the 15 percent rate agreed upon by nearly 140 countries, potentially putting U.S. companies at a disadvantage.
The move by the U.S. administration could lead to retaliatory international tax regimes and threatens penalties for governments attempting to impose taxes on American companies.
Bermuda, which raised its effective corporate income tax rate to 15 percent, was expected to see significant revenue increases under the Global Minimum Tax deal, but the U.S. move may jeopardize these projections.
A Trump government spokeswoman stated that the country's diverse geographical footprint and the fact that its corporate income tax is a domestic tax without GMT measures, should shield Bermuda from the impact of the new U.S. administration's stance.

President Donald Trump has effectively pulled the U.S. out of the Global Corporate Minimum Tax deal just hours after he took office. In 2021, the Biden administration and nearly 140 countries set a 15 percent minimum tax rate for multinational corporations through the Global Corporate Minimum Tax Deal. However, the U.S. Congress never approved measures to bring the U.S. into compliance with the deal, leaving the country with a roughly 10 percent global minimum tax, part of the 2017 Trump tax cut package. Additionally, the European Union, Britain and other countries have already adopted the 15 percent global minimum tax, potentially putting U.S. companies at a disadvantage. In line with this, Trump issued a memorandum that will direct the U.S. Treasury to prepare options for "protective measures" against countries that have or are likely to adopt tax rules that disproportionately affect American companies. (Related: The damage done by Democrats is so immense, one US lawmaker wants Trump to run for a THIRD TERM to fix the damage.) "Because of the Global Tax Deal and other discriminatory foreign tax practices, American companies may face retaliatory international tax regimes if the United States does not comply with foreign tax policy objectives," the memo read. "This memorandum recaptures our Nation’s sovereignty and economic competitiveness by clarifying that the Global Tax Deal has no force or effect in the United States."

Trump admin remains positive on Bermuda's projected $750 million in corporate tax revenues

The move, which threatens penalties for governments attempting to impose taxes on American companies, raises concerns about the future of a deal that was expected to bring hundreds of millions of dollars in revenue to Bermuda. Bermuda, which raised its effective corporate income tax rate from zero to 15 percent, was expected to see significant revenue increases under this agreement. The 2024 to 2-2025 Bermuda Budget statement projected 187 million in corporate income tax (CIT) revenues for the coming fiscal year, with potential annual revenues of up to 750 million in future years – nearly 75 percent of the size of the last annual budget. Critics claimed that the new stance taken by the U.S. Administration could jeopardize these projections. However, a government spokeswoman maintained that the Bermuda international business community's diverse geographical footprint would ensure that the Global Minimum Tax (GMT) is collected by in-scope jurisdictions. She emphasized that the Bermuda CIT is a domestic tax and does not contain the GMT Income Inclusion Rule and Under Taxed Profit Rule, which are primary concerns for the new U.S. administration. "The Bermuda international business community has a diverse geographical footprint, as a result, it would be expected that the Global Minimum Tax will be collected on Bermuda-based businesses by in-scope jurisdictions. The Bermuda CIT is a domestic tax for Bermuda-based businesses and does not contain tax measures such as the GMT Income Inclusion Rule and Under Taxed Profit Rule, which are of primary concern to the new U.S. administration. "We do not expect that the Bermuda CIT or any related actions of the Bermuda Government to date should fall within matters highlighted by the new U.S. administration. Therefore, at this time, we do not anticipate any changes or adjustments will be required for the Bermuda CIT," the spokesperson said. More stories like this can be found at FinanceRiot.com. Donald Trump slams Joe Biden for "difficult" transition. Watch this video.

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Trump admin remains positive on Bermuda's projected $750 million in corporate tax revenues

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