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The Department of the Treasury announced on Monday that the United States has finalized a side-by-side agreement with OECD allies that will shield manufacturers in the United States from damaging taxes.

How it works: “In close coordination with Congress, Treasury worked to reach agreement with the more than 145 countries in the OECD/G20 Inclusive Framework to have U.S.-headquartered companies remain subject to only U.S. global minimum taxes while exempting them from Pillar Two,” according to the agency.

• The “side-by-side” agreement prevents U.S. companies from being subject to Pillar Two’s minimum tax, which would have been disproportionately costly for manufacturers in the United States.
• Meanwhile, the agreement also safeguards U.S. R&D incentives and other measures aimed at increasing investment within the U.S.

The NAM says: “Thanks to President Trump, Secretary Bessent and the administration, this finalized side-by-side agreement—cementing the initial agreement  reached in summer 2025—will protect both domestic and foreign-headquartered manufacturers investing in the United States from oppressive, job-killing taxes. Heeding the call of our industry, this deal will shield manufacturers from damaging taxes that unfairly stifle job creation in the U.S.,” said NAM President and CEO Jay Timmons.

• “Furthermore, today’s finalized deal gives manufacturers greater certainty to unlock the full potential of the historic tax provisions of H.R. 1 that manufacturers championed.”
• “The side-by-side global tax system will ensure that manufacturers in the U.S. can compete on a level playing field, invest in their operations and hire more workers. In short, this deal is a massive triumph for manufacturers in the United States.”

NAM in the News: The Wall Street Journal (subscription) and Reuters (subscription) covered the NAM’s statement.