A hidden clause in Trump’s latest bill could slap UK investors with steep new taxes, threatening transatlantic capital flows and global economic cooperation, says Matthew Bowles

United States President Donald Trump’s latest legislative behemoth has sent shockwaves through Washington. Dubbed “a disgusting abomination” by Elon Musk and greeted with scepticism by Republican Kentucky Senator, Rand Paul, who has declared that “the math doesn’t really add up”, the backlash has been swift. It’s not difficult to see the cause of such upset. The nonpartisan Congressional Budget Office estimates that the ‘One Big Beautiful Bill’ (OBBB) will add $3.8 trillion to the US national debt by 2034, which currently stands at a staggering $36 trillion.

With tax breaks and increased levels of defence spending, the OBBB is presently in a reconciliation state in the Senate, with a 4th July deadline looming.

To many in the UK, it may sound like yet another round of American legislative theatre. However, buried in its over 1,000 pages lies Section 899, a provision that could have serious consequences for British investors and businesses.

Section 899, also known as the “Enforcement of Remedies Against Unfair Foreign Taxes”, introduces sweeping changes to how the US taxes payments of dividends, interest and royalties to foreign persons. It doesn’t just tweak existing rules – it sharply raises withholding taxes. These taxes........

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