Trump Withdraws from Global Tax Deal, Stalls International Reforms

Efforts to implement global tax reforms targeting billionaires and multinational corporations have stalled, largely due to the United States withdrawing from an international agreement under President Donald Trump. Trump has threatened tariffs on countries that impose taxes on American tech giants like Amazon, Microsoft, Alphabet, and Meta, labeling such measures as discriminatory or disproportionate. This stance has reignited tensions between Washington and its allies, especially following France's digital services tax, which several other countries have since adopted, generating significant revenue. In response, the European Union is considering its own digital tax if negotiations over Trump's proposed tariffs on EU goods fail, while the UK may reconsider its digital levy to maintain favorable trade relations with the US. Nearly 140 countries had previously reached a deal in 2021 under the OECD framework to tax multinational companies, but US opposition is now jeopardizing progress. The standoff underscores the challenges in achieving a unified approach to taxing global tech firms and the super-rich.