Joe Biden has succeeded in ramming through a deal to overhaul global corporation tax as the West turns decisively against big tech.
The US President has convinced 136 countries to agree they will enforce a minimum tax rate of 15pc on major multinationals in a bid to tame some of the worlds largest corporations.
The group includes all countries in the G20, the European Union and Organization for Economic Cooperation and Development (OECD).
However, Switzerlands finance minister said it will not be possible for the country to implement the new rules by 2023, as envisaged by the OECD, in an early sign that the transition will not be a smooth one.
Chancellor Rishi Sunak hailed the landmark deal, saying the tax reform represents "a clear path to a fairer tax system".
It comes after years of wrangling by world leaders about how to handle global tech giants such as Facebook and Apple, which typically book their profits in low-tax countries like Ireland.
Alongside the minimum 15pc headline levy, the new rules will also give countries the right to slap taxes on large companies based on where they make their sales.
Tech companies are increasingly facing a backlash over their global power and reach. Amazon has been accused by critics of destroying the high street, while Facebook has faced sharp criticism over claims that its social media services are breeding radicalism and harming users' mental health.
Ireland was one of the last major holdouts, as the country's economic model is built around attracting foreign multinationals with a favourable tax rate. Dublin caved to pressure from the Biden administration at the eleventh hour on Thursday, reversing its decision to hold out against the move.
Critics argue that the deal will hold back the post-Covid recovery, make the international system less competitive and reduce countries' room for manoeuvre.
Matthew Lesh, head of research at the Adam Smith Institute, said: The minimum tax rate is a historic tragedy that will inflict significant economic damage.
"A cabal has agreed to suppress fruitful economic competition and policy diversity. If businesses came together like this, to conspire to keep prices high, it would be unlawful.
This deal locks in higher and inflexible corporate taxes that significantly reduce investment, entrepreneurial activity and economic growth. It also threatens key UK Government policies such as the super deduction and free ports by limiting corporate tax carve outs."
The deal will also put an end to arguments between global powers about introducing new digital taxes for the time being, which the US government has deemed discriminatory.
It gives the US room to ratify the agreement, saying that no newly enacted digital services taxes or other relevant similar measures will be imposed on any company from 8 October 2021 for two years.
The minimum corporate tax rate will apply to companies with revenue above 750m (636m) and will generate around $150bn in additional global tax revenues annually for governments, according to the OECD.
Of the countries involved in the talks, only Kenya, Nigeria, Pakistan, and Sri Lanka have not signed the deal, the Paris-based body added.
Hungary and China secured last minute concessions, with the former being granted a longer transition period and the latter getting a dispensation for companies that are starting to expand internationally.
Mr Sunak hailed an initial breakthrough among G7 nations at a UK-hosted summit in July. The change will not greatly impact the UK compared to other nations as the Chancellor is already raising headline corporate tax rates from 19pc to 25pc.
On Friday, Mr Sunak added: "I am proud that the UK has taken a leading role in the worlds efforts to upgrade the global tax system for the modern age - a key priority of our G7 presidency.
"We now have a clear path to a fairer tax system, where large global players pay their fair share wherever they do business."
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136 countries sign up to Biden's tax reforms aimed at taming tech giants - Telegraph.co.uk
