Analysts Wary of Trump’s “Retaliatory Tariffs” Impact on International Investments in the US

A new “revenge” tax proposed by Donald Trump could endanger foreign investment in the US, according to analysts. The tax, included in the President’s One Big Beautiful Bill Act, would impose higher taxes on foreign individuals, businesses, and investors linked to countries that impose “unfair foreign taxes” on US individuals and companies. Companies listed on the London Stock Exchange could evade the tax by moving to New York. Section 899 of the bill classifies digital service taxes, diverted profits taxes, and any taxes targeting US entities as unfair, allowing US authorities to impose an additional tax of 5%, which could increase by five percentage points annually up to a maximum of 20%. Max Yoeli, a senior research fellow at Chatham House, believes that section 899 will further alienate foreign investors and undermine the US’s openness to investment. The Italian bank UniCredit also shares the concern, stating that the tax could damage foreign investor sentiment towards US dollar-denominated assets.

Source: https://www.theguardian.com/us-news/2025/jun/16/donald-trump-revenge-tax-could-threaten-foreign-investment-into-us-analysts-say