Trump Order Lets US Companies Dodge $40 Billion in Taxes Through Offshore Havens
Updated
Updated · The New York Times · May 29
Trump Order Lets US Companies Dodge $40 Billion in Taxes Through Offshore Havens
2 articles · Updated · The New York Times · May 29
$40 billion in income taxes has been avoided by U.S. companies since the start of 2025 by booking profits in low- or no-tax jurisdictions, according to a New York Times review of nearly 500 filings.
Trump made those havens more attractive by withdrawing on his first day back in office from a 13-year international push for minimum corporate taxes and anti-avoidance rules.
Hundreds of billions of dollars in earnings were routed to places including Malta, Cyprus, Bermuda, Switzerland and the Cayman Islands, often through subsidiaries with no employees, offices or customers.
American Express avoided $423 million via Jersey, Abbott cut $336 million through Malta, and Stanley Black & Decker reduced its bill by $27 million using Cyprus; PayPal nearly halved its 2025 tax bill through Singapore.
The tax savings span sectors from Walmart and Uber to Merck and Cigna, and the $40 billion total would be enough to roughly triple the annual budget of the FAA or Customs and Border Protection.
With U.S. companies now exempt from global tax rules, what prevents a new international corporate tax war?
As courts crack down on tax schemes, are offshore havens becoming too risky for big corporations?
How the 2025 Trump Tax Overhaul and OECD Withdrawal Supercharged Corporate Tax Avoidance and Shifted America’s Tax Burden
Overview
In early 2025, U.S. tax policy shifted dramatically when the Trump administration withdrew from international tax agreements and enacted the One Big Beautiful Bill Act (OBBBA). This included an executive order pulling the U.S. out of the OECD global minimum corporate tax agreement. Together, these actions reshaped the environment for both multinational corporations and domestic businesses. The changes allowed companies to avoid more taxes, especially by using offshore havens, while new domestic laws provided permanent tax cuts mainly benefiting large corporations and wealthy individuals. As a result, the tax burden shifted toward average Americans, increasing inequality and straining public services.