Potential introduction of tariffs on money through Section 899 could impact foreign capital negatively.

From Investing.com: 2025-06-17 09:03:00

The One Big Beautiful Bill (OBBB) has passed the House and is awaiting Senate review. A key focus is on Section 899, which introduces tariffs on money as a complement to tariffs on goods. The section imposes taxes on passive income from foreign ownership of US assets for countries with unfair foreign taxes. The tax rate increases by 5% annually, capped at 20% above the statutory rate. If enacted before October 2025, it will take effect on January 1st, 2026. The impact could potentially bring in USD 100-150 billion per year with the repeal of the Portfolio Interest Exemption (PIE). Investors are closely watching for further developments.



Read more at Investing.com: Section 899 and the Birth of Tariffs on Money: A New Threat to Foreign Capital?