President Donald Trump on Monday issued a memorandum declaring that the global corporate minimum tax agreement, negotiated by the Biden administration with nearly 140 countries in 2021, would have “no force or effect” in the United States.

In doing so, Trump effectively withdrew the U.S. from the landmark deal.

The memorandum also directed the U.S. Treasury to explore options for “protective measures” against countries that impose or are expected to implement tax rules that could unfairly impact American businesses, according to Reuters.

The European Union, Britain, and other countries have implemented the 15% global corporate minimum tax, but the U.S. Congress never passed legislation to align the U.S. with the agreement.

Currently, the U.S. has a global minimum tax rate of around 10%, as part of Trump’s 2017 tax reform package, which was approved by Republicans.

However, countries that adopted the 15% rate may be able to impose a “top-up” tax on U.S. companies paying a lower rate.

“Because of the Global Tax Deal and other discriminatory foreign tax practices, American companies may face retaliatory international tax regimes if the United States does not comply with foreign tax policy objectives,” the memo reads.

“This memorandum recaptures our Nation’s sovereignty and economic competitiveness by clarifying that the Global Tax Deal has no force or effect in the United States.”

After years of stalled talks on global tax reforms led by the Paris-based Organization for Economic Cooperation and Development to address competitive corporate tax rate cuts, former U.S. Treasury Secretary Janet Yellen endorsed the global minimum tax deal in October 2021.

However, Scott Bessent, Trump’s nominee for Treasury, warned on Thursday that moving forward with the deal would be a “grave mistake.”