Donald Trump has ordered officials to draw up retaliatory measures against countries applying “extraterritorial” levies on US multinationals, in a move that threatens to trigger a global confrontation over tax regimes.
The US president made the move in an executive order on Monday night, withdrawing US support for a global tax pact agreed at the OECD last year that allows other countries to levy top-up taxes on US multinationals.
He added that the “list of options for protective measures” should be drawn up “within 60 days”, putting signatories to the OECD pact — including EU member states, the UK, South Korea, Japan and Canada — on notice that Washington intends far-reaching challenges to global tax rules.
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