Trump Clears Way for Companies to Avoid Taxes in Havens Including Malta and Cyprus

Why It Matters

The reversal erodes the effectiveness of the global minimum‑tax regime, allowing U.S. multinationals to retain billions that would otherwise support federal revenue and level the competitive playing field.

Key Takeaways

• U.S. firms avoided $40 billion in taxes since early 2025.
• Trump’s withdrawal from global tax pact enabled offshore profit shifting.
• American Express saved $423 million via Jersey; Abbott cut $336 million using Malta.
• Avoided taxes could have funded FAA and CBP budgets threefold.

Pulse Analysis

When President Donald Trump returned to the White House in 2025, he immediately rescinded the United States’ participation in the 13‑year‑old global framework aimed at curbing offshore profit shifting. The pact, championed by the OECD and G20, had introduced a 15 percent global minimum corporate tax and reporting rules designed to shine a light on earnings booked in low‑tax jurisdictions. By opting out, the administration removed a key deterrent, allowing U.S. multinationals to re‑activate legacy structures in Malta, Cyprus, Bermuda and other havens without fear of coordinated enforcement.

The financial impact is stark. A review of SEC filings for roughly 500 companies shows that U.S. firms have collectively dodged at least $40 billion in income taxes since the start of 2025. High‑profile examples include American Express, which shaved $423 million off its bill through a Jersey subsidiary, and Abbott Laboratories, which claimed $336 million in savings by routing global profits through a shell in Malta. The practice spans industries—from retail giants like Walmart to fintech firms such as PayPal—demonstrating that tax avoidance is now a mainstream corporate strategy rather than a niche loophole.

For policymakers, the numbers raise urgent questions about revenue shortfalls and competitive fairness. The avoided $40 billion could have tripled the budgets of the Federal Aviation Administration and U.S. Customs and Border Protection, underscoring the fiscal cost of inaction. Lawmakers are likely to revisit domestic anti‑abuse provisions, such as the Global Intangible Low‑Taxed Income (GILTI) regime, while international partners may pressure Washington to re‑join the minimum‑tax agreement. Companies, meanwhile, must weigh short‑term savings against reputational risk as public scrutiny of offshore structures intensifies.