Washington: US Treasury Secretary Scott Bessent announced that his agency will unveil a joint understanding with G7 countries ensuring that American companies will be exempt from the Organization for Economic Cooperation and Development (OECD) global tax deal's pillar taxes. According to Anadolu Agency, Bessent emphasized on social media that the exemption is a result of two Executive Orders issued by President Donald Trump on January 20, aimed at defending US tax sovereignty. These orders have led to an agreement that prioritizes American interests, ensuring that OECD Pillar 2 taxes will not apply to US companies. Bessent further explained that the Treasury Department is committed to collaborating with the OECD-G20 Inclusive Framework to implement this agreement in the upcoming weeks and months. He stated that this understanding with G7 partners would provide greater certainty and stability for the global economy, enhancing growth and investment in the US and internationally. The Secretary criticized the previous Biden Administration's commitments to the OECD tax framework as "unwise," asserting that the current administration is focused on safeguarding US authority over tax policies that benefit American businesses and workers. Bessent highlighted the prevention of a potential $100 billion loss in American taxpayer dollars, as estimated by the Treasury and the non-partisan Joint Committee on Taxation. Bessent reiterated the Trump Administration's stance against discriminatory and extraterritorial foreign taxes targeting Americans, affirming a commitment to defending US tax sovereignty and ensuring a fair competitive landscape for American citizens and companies. The OECD global tax deal is designed to address corporate taxation on an international scale, with Pillar one focusing on profit reallocation to market countries, and Pillar two enforcing a 15% minimum global tax, which has been widely adopted by participating countries.