Trump’s latest move could shake up US-EU relations over tax policies
Washington: So, Trump is at it again. He’s threatening to double taxes on foreign companies. This is all part of his “America First” trade policy. It’s a bold move, for sure.
There’s been a lot of chatter about “discriminatory taxes” on US businesses. Trump thinks he can tackle this using a specific clause in the tax code. It’s called Section 891.
This section lets him double taxes on foreign nationals and companies if they’re seen as unfairly taxing the US. He’s asked the treasury secretary to look into it.
He’s also pulled the US out of the Global Tax Deal. This deal was about setting a minimum tax rate of 15% on company profits. It was backed by 140 nations, including the US under Biden.
Trump argues that this deal gives too much power to the OECD over US tax policies. He believes it limits what the US can do for its own businesses.
In his executive order, he said the Global Tax Deal could lead to “retaliatory international tax regimes.” That’s a fancy way of saying other countries might hit back if the US doesn’t play along.
He’s calling for options to protect American interests. This could really shake things up between the US and the EU over tax issues.
And guess what? The British Embassy is looking into how this will impact the UK. It’s a big deal, and everyone’s watching closely.
