Implications of the new US administration on global tax co-operation

The new Trump administration is certainly creating an impact across the globe and two significant announcements have created serious uncertainty in the world of global trade and international taxation:

• the signing of a presidential memorandum on 20 January 2025 to the secretary of the Treasury entitled ‘The Organisation for Economic Co-operation and Development (OECD) Global Tax Deal’; and
• announcements intentions and suspensions of tariffs.

With these announcements the global tax landscape is shifting rapidly. For instance having already gold-plated and even adopted some of the OECD’s directives the EU is now caught between a rock and a hard place.

Indeed if EU countries give in to President Trump’s demands US companies will have a competitive edge over their EU competitors who must still pay the minimum 15% rate. However if demands are not accepted life for EU companies in the US...