Trump’s latest move could shake up US-EU relations as he threatens to impose double taxes on foreign companies and nationals
Washington: So, Trump is at it again, stirring the pot with the EU. He’s threatening to double taxes on foreign companies and nationals. This is all part of his “America First” trade policy, which he’s been pushing hard.
There’s been a bit of a spat over what he calls “discriminatory taxes” that hit US businesses. Trump thinks he can tackle this using a specific clause in the US tax code. It’s called Section 891, and it could let him double taxes on foreign entities if they’re seen as unfairly taxing the US.
He’s even told the treasury secretary to look into whether any foreign country is hitting US citizens or companies with these kinds of taxes. It’s a big deal for him.
On top of that, he’s pulled the US out of the Global Tax Deal. This was an agreement aimed at setting a minimum tax rate for corporations worldwide. Trump argues it gives too much power to the OECD over US tax policies, which he’s not a fan of.
He’s worried that this deal could lead to “retaliatory international tax regimes” against US companies if they don’t play along. His executive order to withdraw from the deal is one of many he’s signed since taking office.
This move could really strain the relationship between the US and the EU, especially over tax issues. And it seems the British Embassy is already looking into how this will impact the UK. It’s a developing story, and it’ll be interesting to see how it all unfolds.
