Agreement Exempts U.S. Companies From 15% Global Minimum Tax

American companies will not be subject to a previously proposed 15% global minimum tax under a new agreement between the United States and more than 145 participating countries.

In 2021, the Biden administration advanced an international agreement that set a 15% global minimum tax to discourage multinational corporations from shifting earnings to low- or no-tax haven nations, such as Bermuda and the Cayman Islands. The deal was finalized through the Organisation for Economic Cooperation and Development (OECD), an international intergovernmental group that helps shape economic policy and establish global standards.

On Monday, Jan. 5, the Trump administration announced a revised agreement that ensures companies headquartered in the United States will remain subject only to U.S. global minimum tax while exempting them from the “Pillar Two” rules that aim to impose the 15% minimum tax. U.S. Treasury Secretary Scott Bessent said the exemption recognizes the tax sovereignty of the United States over the worldwide operations of U.S. companies and protects the value of U.S. research and development credits.

“Thanks to President Trump, Secretary Bessent, and the administration, this finalized side-by-side agreement — cementing the initial agreement reached in summer 2025 — will protect both domestic- and foreign-headquartered manufacturers investing in the United States from oppressive, job-killing taxes,” said Jay Timmons, president and CEO of the National Association of Manufacturers. “Heeding the call of our industry, this deal will shield manufacturers from damaging taxes that unfairly stifle job creation in the U.S.

“The side-by-side global tax system will ensure that manufacturers in the U.S. can compete on a level playing field, invest in their operations, and hire more workers,” Timmons continued. “In short, this deal is a massive triumph for manufacturers in the United States.”