US President Donald Trump signed an executive order declaring that the global minimum corporate tax, which was supported by the Joe Biden administration and was agreed upon with more than a hundred countries, does not operate in the United States, Reuters reported, quoted by BTA.
"This memorandum restores our country's sovereignty and economic competitiveness by clarifying that the global tax deal has no force or effect in the United States," the memorandum says.
This document is one of many that Trump signed on the first day of his second term as US president.
Reuters notes that with his executive order, Trump effectively withdraws the US from the landmark 2021 agreement.
Trump also ordered the US Treasury Department to prepare "safeguard measures" against countries that have introduced or are likely to introduce tax rules that disproportionately affect American companies.
The European Union, Britain and other countries have agreed on a global minimum corporate tax rate of 15%.