Analysts suggest that if the U.S. Senate passes Clause 899 of the tax burden bill, it could diminish the appeal of dollar assets to foreign investors. President Trump introduced this new measure following the imposition of equal tariffs, and major media outlets have reported on its potential impacts.

The recently passed 'One Big Beautiful Bill' includes Clause 899, which represents a comprehensive reform of the U.S. tax system for foreign capital. This clause allows the government to impose a maximum 20% income tax and withholding tax on foreign investors in the U.S. This measure aims to target countries that impose unfair taxes on American companies.

According to previous reports, these countries may face an additional 5% tax rate, resulting in a total tax potentially reaching 20%. Investment banks and law firms have warned that this could have a significant impact on investors, similar to tariffs.

Salavios stated that this legislation could create conditions for a shift from a trade war to a capital war, highlighting Clause 899 as a means to advance U.S. economic objectives through taxation of foreign investors.

Furthermore, he pointed out that nationals from countries imposing digital service taxes, such as France and Germany, would face higher tax burdens when purchasing U.S. assets. The report also raised concerns about potential capital outflows.

Overall, if Clause 899 is passed in the Senate, it could pose serious challenges to foreign companies and investors, altering their investment strategies in the U.S.