European Union officials expressed regret over US President Donald Trump's decision to pull the United States out of a global agreement setting a minimum corporate tax rate of 15%. The EU economy commissioner, Valdis Dombrovskis, stated that the European Commission remains committed to the tax reforms and plans to engage in discussions with the new US tax administration. Officials from both the EU and Ireland are closely monitoring the situation and preparing for potential trade repercussions.
Valdis Dombrovskis, trade commissioner for the European Union , left, during a news conference at the Economic and Financial Affairs Council meeting at the European Council headquarters in Brussels, Belgium, on Tuesday, Jan. 21, 2025. Investors are betting the European Central Bank will lower borrowing costs four times in 2025.
Ireland signed up to the Organisation for Economic Co-operation and Development tax deal in 2021, agreeing to shift from its long-held 12.5 per cent corporate tax rate, to align with a new minimum global rate of 15 per cent.
Many of the exact details of policies Mr Trump set out in his inauguration speech and statements afterwards still remain to be seen, he said.Department of Finance officials are currently studying the text of the White House order pulling the US from the OECD tax deal. “We take note of the concerns raised by the incoming administration and their commitment to examine matters over the coming months,” a spokeswoman said.
EU officials in Brussels and Irish officials in Dublin are still bracing for the new White House administration to announce tariffs on imports from Europe, a promise Mr Trump regularly made on the campaign trail. There are fears trade tariffs levelled by the US will draw similar measures from the EU in retaliation, in a back and forth cycle that could escalate into a US-EU trade war.
CORPORATE TAX GLOBAL TAX DEAL DONALD TRUMP EUROPEAN UNION TRADE POLICY
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