The fate of the OECD-led global tax deal was rocked this week after the US and its Group of Seven allies came to an understanding that would exempt American companies from two key parts of the global minimum tax framework.

G7 countries agreed to the exemption over the weekend in exchange for Congress removing Section 899 from its tax-and-spending bill—a provision referred to as the "revenge tax" that would have hiked taxes on foreign-owned companies if their home countries imposed "unfair" taxes on US businesses.

In this week's episode of Talking Tax, reporter Lauren Vella talks about how the agreement was reached, and why the G7's statement is only the first small step toward the US achieving what it calls "side-by-side" treatment of its tax system and the global minimum tax framework.

She also discusses Canada's decision to revoke its digital services tax to bring President Donald Trump back to the trade negotiating table, and what impact it could have on other countries that have similar levies in place.

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