Will Trump Derail Global Tax Deal?

What happens to the 15% global minimum corporate tax that 140+ countries agreed on?

It’s like planning a group dinner across countries, and just when everyone finally agrees on the place and time, one big guest says, “Nope, I’m ordering in!” That guest... is the United States.

  

## But first, what exactly is this global minimum tax?

Think of it like a floor—no country can charge big multinational companies less than 15% in corporate taxes. Why? Because for years, these giant companies have played "musical chairs" with their profits—shifting them to tax havens like Bermuda or Ireland to avoid paying fair taxes.

So the goal of this tax is to stop this race to the bottom, where countries compete by slashing tax rates just to attract businesses. It’s not about taxing small local stores or freelancers—it’s aimed at global giants like Apple, Google, and Meta.

And yes, India is part of this deal too. We want to make sure our piece of the tax pie doesn't vanish to some zero-tax Caribbean island.

  

## So what did Trump do the last time?

Simple: He made life easier for corporations. In 2017, he passed massive corporate tax cuts—from 35% to 21%—and withdrew from global deals that he didn’t like, whether it was about climate, trade, or cooperation.

Now imagine this man looking at a carefully negotiated global tax deal built on diplomacy and consensus. Yeah... doesn’t look promising, right?

  

## Should India be worried?

Absolutely. Here’s the thing—if the U.S. doesn’t follow through, big American companies won't owe that minimum 15% tax anymore. And if India tries to tax them, those companies may push back shouting "unfair!" or worse, threaten to pull business.

Worse, India might look isolated or aggressive by enforcing taxes while other countries stay quiet. You can't clap with one hand on global tax compliance.

And for a country like ours, that’s trying to be a digital economy hub, this global rulebook matters.

  

## But wait, isn't this tax already in effect?

Kinda. Some parts are live, many still on paper. The “Pillar Two” portion—the actual 15% minimum—is supposed to kick in across G20 countries.

But without U.S. backing, enforcement is shaky. Many groups may delay implementation, citing "complexity" or “awaiting clarity”—you know, those classic bureaucratic excuses.

One domino falls, others stumble—that’s how global cooperation works (or doesn't).

  

## Will other countries still move ahead?

Some will! The European Union is pretty committed. Japan and UK may stay on too. We in India? We're watching closely.

But there's this quiet message between the lines… “If America isn’t doing it, why should we be the only ones wearing the uniform during the parade?”

That’s dangerous. Because without full participation, tax havens become sexy again for corporations. And fairness in the system dies a slow death.

  

## What could India do?

We should push for strong domestic laws to implement the minimum tax regardless. Also, build regional coalitions—maybe with the EU or OECD—to keep the pressure on big corporations. Let them know, India isn’t a pushover.

Another option? Strengthen “equalisation levies”—those are special digital taxes for foreign companies operating here without paying enough local taxes.

We did it once for Google and Facebook. We can do it again. But yes, brace for retaliation, especially from American tech players.

  

## Why should you care?

Because this tax touches everything—from digital services to prices on your next Amazon order. When giant companies dodge fair taxes, guess where the tax burden falls? Yep—on you, the regular taxpayer.

Also, if low-tax countries win again, developing nations like India get left behind. Our roads, schools, and hospitals lose billions every year due to tax avoidance by global MNCs. Unfair, isn't it?

So now the global tax deal isn’t just about law—it’s about justice.

  

Before you go—do you think one politician in one country should hold the power to derail a deal the rest of the world worked five years on?

Let me know what you think in the comments or messages! Should India go solo if the U.S. backs out?

  

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