G7 backs exemption for US firms from global minimum tax, in win for Trump administration

The Group of Seven (G7) nations announced on Saturday that they have agreed to exempt US multinational corporations from a global minimum tax imposed by other countries—a major victory for President Donald Trump’s administration, which had lobbied strongly for the exception.

According to a joint statement released by Canada, which currently holds the G7 presidency, the deal allows American companies to be taxed solely in the United States under a “side-by-side” approach that covers both domestic and foreign earnings.

The agreement was facilitated by proposed reforms in the U.S. international tax system, which are included in Trump’s sweeping domestic policy bill still under debate in Congress.

The G7 stated that this arrangement would promote “greater stability and certainty in the international tax system moving forward.”

The global minimum tax, set at 15 percent, is part of a broader 2021 agreement involving nearly 140 countries under the Organisation for Economic Co-operation and Development (OECD). Trump has been a vocal critic of the deal, particularly its provisions aimed at taxing large multinational firms.

While the G7 has reached consensus on the exemption, final approval must come from the OECD, which oversees the global tax framework.

“We look forward to expeditiously reaching a solution that is acceptable and implementable to all,” the G7 statement said.

On Thursday, US Treasury Secretary Scott Bessent hinted at progress, describing efforts toward a “joint understanding among G7 countries that defends American interests.”

Bessent also urged lawmakers to eliminate Section 899 from Trump’s legislative package, often referred to as the “One, Big, Beautiful Bill.” The section—known as the “revenge tax”—would enable the U.S. to impose taxes on foreign-owned firms and investors from countries that levy what Washington views as unfair taxes on American businesses.

Critics warn that Section 899 could discourage foreign investment in the U.S., raising concerns among international stakeholders and industry groups.