Concerns raised that section 899 could backfire and also undermine dollar’s safe haven status
Foreign investment into the US could be threatened by Donald Trump’s new “revenge” taxes, analysts have warned.
A provision within the president’s One Big Beautiful Bill Act will allow the US to apply higher taxes on foreign individuals, businesses and investors connected to jurisdictions that impose “unfair foreign taxes” on US individuals and companies.
Companies listed on the London Stock Exchange could choose to avoid the measure by redomiciling in New York.
Section 899, as it is called, classes digital service taxes and “diverted profits taxes” as unfair, along with any taxes that target US entities. It would allow US authorities to impose an additional tax starting at 5% and increasing by five percentage points annually, up to 20%.
