Overview

• G7 leaders agreed at their Canada summit to carve out U.S. companies from the OECD-backed 15% global minimum tax under a side-by-side framework.
• In return for the exemption, the Trump administration formally withdrew Section 899, a planned “revenge tax” on countries that impose levies on American firms.
• United Kingdom businesses also won relief under the agreement, with Finance Minister Rachel Reeves saying it provides much-needed certainty.
• The accord remains nonbinding and must secure approval from all 38 OECD members before it can take effect.
• The compromise underscores U.S. leverage through tariff threats and congressional inaction on the 2021 OECD pact, shaping the future of global tax negotiations.