// ECONOMIC AND SOCIAL SECURITY: MACROECONOMIC AND FINANCIAL POLICY
S hortly after his inauguration in January 2025, US president executive memorandum formally repudiating America’s commitments to the Organisation for Economic Co-operation and Development and G20’s global corporate tax agreement, signed in October 2021. Trump’s decision, underpinned by a revived protectionist posture and threats of retaliatory measures against jurisdictions imposing “discriminatory or extraterritorial taxes” marks a pivotal moment in the evolution of the global Donald Trump issued a sweeping corporate tax regime, reminiscent of the 1971 Nixon Shock, when the United States abandoned the gold standard and introduced import tariffs and price controls. Whereas former US treasury secretary Janet Yellen heralded the 2021 agreement as a “once in a generation accomplishment for economic diplomacy,” the Trump administration’s recent pivot signals US ambitions to dismantle over a decade of multilateral tax diplomacy, reassert its tax sovereignty and head for the exit when it comes to global economic cooperation. These recent developments imperil the future of the G20-OECD two-pillar
The United States’ withdrawal from the 2021 global tax agreement means G7 members must sustain the momentum and credibility of global tax reform. Adaptive measures can help uphold commitments to international tax justice America’s exit and the future of global corporate tax reform
Michael F. Motala, fellow, G7 Research Group
40 // G7 CANADA: THE KANANASKIS SUMMIT 2025
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