China leads objections to Trump reprieve on global minimum tax
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TaxAdd to myFTGet instant alerts for this topicManage your delivery channels hereRemove from myFTChina leads objections to Trump reprieve on global minimum tax Beijing and several European countries hold up deal to exempt US multinationals from OECD tax regimeDonald Trump’s administration secured the concessions after threatening retaliation over the measures to crack down on tax avoidance © ReutersChina leads objections to Trump reprieve on global minimum tax on x (opens in a new window)China leads objections to Trump reprieve on global minimum tax on facebook (opens in a new window)China leads objections to Trump reprieve on global minimum tax on linkedin (opens in a new window)China leads objections to Trump reprieve on global minimum tax on whatsapp (opens in a new window) Save China leads objections to Trump reprieve on global minimum tax on x (opens in a new window)China leads objections to Trump reprieve on global minimum tax on facebook (opens in a new window)China leads objections to Trump reprieve on global minimum tax on linkedin (opens in a new window)China leads objections to Trump reprieve on global minimum tax on whatsapp (opens in a new window) Save Emma Agyemang in Copenhagen, Paola Tamma in Brussels and Stephen Foley in WashingtonPublishedDecember 11 2025Jump to comments sectionPrint this pageUnlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.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. Agreed by 135 countries in 2021, the landmark OECD tax regime has faced considerable implementation challenges. No country has applied the first “pillar” of the deal, which regards where profits are taxed.The second pillar — the global minimum tax — has faced resistance from the US, home to the world’s biggest multinationals, and has not been implemented by China.After months of talks aiming to reach a deal by the end of 2025, the OECD had planned to release documents on Wednesday outlining agreed language around the changes sought by the G7. These included the carve-out for US companies, an initiative to simplify compliance for businesses and another on the tax incentives that qualify as compliant with the global minimum tax.However, the planned publication was stopped after objections were raised by China, the Czech Republic, Estonia and Poland, according to officials involved in the process.During the negotiations, China has questioned why it is not eligible for the same carve-outs as the US. Poland and the Czech Republic had expressed unhappiness about the deal relating to tax incentives. Estonia, meanwhile, raised broader objections including a potentially harmful impact on the EU’s competitiveness, given Europe is implementing reforms while others are not, and the outsized bureaucratic costs given the limited tax revenue. “We have not considered this initiative suitable for Estonia from the very beginning, and even less so now, when the US, who initiated this effort, has declined to implement it themselves,” said Jürgen Ligi, Estonia’s finance minister. “I told my US colleague when asked that we do not want anything other than what they want for themselves.”People with knowledge of the negotiations said that the countries’ objections did not mean the end of talks but raised the risks of a breakdown, particularly if agreement could not be found by the end of the year. One said the global minimum tax was “in the ICU”. But another said there was “grey smoke” rather than “black smoke” coming from the negotiators, suggesting an agreement could yet materialise. The developments come at a difficult time for negotiations as countries race to agree changes to the global tax rules and the US carve-out before an end-of-year deadline. Negotiations are being followed closely on Capitol Hill, where Republicans earlier this year planned to introduce a “revenge tax” that would punish companies and investors from countries that implemented the global minimum tax as it was originally designed. The threat was withdrawn after the G7 agreed in June to renegotiate the regime and exempt US multinationals.“We have been patient to allow for all negotiating parties to have the space they need to reach agreement, but they must reach agreement,” said Jason Smith, chair of the House ways and means committee, at a congressional hearing earlier this month.The OECD declined to comment.Additional reporting by Ilya GridneffReuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article Tax Add to myFT Global Economy Add to myFT G7 Add to myFT OECD Add to myFT US Add to myFT Comments