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G7 Exempts US Multinationals From Global Minimum Tax, Canada Scraps Digital Services Levy

Responding to Trump’s threats of punitive revenge taxes, G7 leaders agreed a parallel exemption on June 28, setting the stage for resumed US-Canada tariff talks aimed at a July 21 agreement.

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Overview

  • The G7’s parallel solution grants US-based multinationals a carve-out from the OECD’s 15% global minimum tax, with implementation details to be hashed out by the OECD-G20 Inclusive Framework in the coming weeks.
  • Over the weekend, Canada revoked its 3% digital services tax on US tech firms, a move announced by Finance Minister François-Philippe Champagne to restart stalled trade negotiations with the United States.
  • President Trump and Canadian Prime Minister Mark Carney have committed to finalizing a bilateral tariff deal by July 21 after talks resumed following Canada’s DST repeal.
  • The exemption’s legal form—either a specific safeguard clause or recognition of the US GILTI regime—remains uncertain pending upcoming deliberations among more than 140 jurisdictions in the Inclusive Framework.
  • Economic experts such as Joseph Stiglitz and Gabriel Zucman condemned the concessions as prioritizing multinational interests over public revenues and called for a more transparent, UN-anchored tax reform process.