The President has issued a memorandum revoking the previous administration’s commitments to the OECD Global Tax Deal, which was criticized for allowing extraterritorial jurisdiction over American income and limiting the country’s ability to enact tax policies that serve American businesses and workers.
The new directive allows the Trump Administration to take action against foreign countries that do not comply with their tax treaties or impose unfair tax rules on American companies. The Secretary of the Treasury will investigate non-compliant countries and develop options for protective measures, which must be presented to the President within 60 days.