Global Minimum Tax Negotiations Stall Amid China and EU Resistance

President Donald Trump's revised global minimum tax proposal faces significant pushback from China and the European Union, reigniting fears of retaliatory measures. The stalemate threatens to unravel a 2021 agreement signed by 135 countries, with TRUMP warning of a potential 'revenge tax' on foreign investment if talks collapse.

The dispute stems from June's G7 agreement, which included carve-outs designed to shield US companies from certain provisions of the global tax framework. These exemptions were negotiated after Trump threatened retaliation against the original tax plan structure. While intended to ease tensions surrounding the Biden administration's anti-profit-shifting measures, the plan's implementation remains in limbo.

China has emerged as the primary dissenter, challenging why its multinational corporations shouldn't receive equal treatment to their American counterparts. This objection forced the OECD to delay publishing revised guidelines that WOULD have formalized the G7 concessions. Meanwhile, Poland and the Czech Republic have rejected proposed tax-incentive rules, further complicating the negotiation process.