China and a clutch of EU countries have objected to planned exemptions for big US multinationals from global tax obligations, raising the risk of Donald Trump resurrecting a “revenge tax” on foreign investment.
The stand-off comes after months of negotiations on how to implement a G7 agreement in June to spare American companies from part of the OECD’s global minimum tax regime.
The Trump administration secured the concessions after threatening retaliation over the measures to crack down on tax avoidance, which were agreed by the previous Biden administration as part of the biggest global tax deal in more than a century.
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