U.S. President Donald Trump has raised concerns among individual investors in the U.S. stock market regarding the 'One Big Beautiful Bill Act' (OBBBA), particularly its section 899 trillion. Section 899 trillion involves imposing a retaliatory tax on the citizens of countries that impose unfair taxation on U.S. corporations.
Hwang Soo-wook, a researcher at MERITZ Securities, evaluated on the 4th that while realizing it may reduce the investment appeal of U.S. assets, it should be considered that it can be used as a trade negotiation card.
Section 899 trillion of the OBBBA states that if foreign nationals receiving interest from U.S. government bonds or corporate bonds, or dividends from U.S.-listed corporations are subject to 'unfair taxation' by their own country, and the U.S. determines that country to be a 'discriminatory foreign nation,' then the withholding tax rate for those investors will increase by 5 percentage points to 10 percentage points. If not improved, additional tax rates may rise annually.
The market views this provision as targeting the European Union (EU) because the EU has been raising the threshold against U.S. big tech. Researcher Hwang noted, "If the bill is realized, the investment appeal of the U.S. from the perspective of European investors will decrease," adding that "concerns of price declines could lead to reduced investment appeal not only for other foreigners but also for Americans in U.S. stocks and bonds."
Currently, the OBBBA has passed the U.S. House by a single vote and is under consideration in the Senate. Since the OBBBA contains large-scale tax cuts and expenditure increases, dissenting voices are emerging even within the Republican Party, indicating that the content of the bill may be adjusted.
Researcher Hwang also mentioned, "(Even if implemented) we must consider the likelihood that section 899 trillion may only serve as a negotiation card to demand the withdrawal of legislation unfavorable to U.S. big tech," adding that "if the U.S. can secure the abolition of foreign big tech taxes that it desires, it could actually be a boon for the U.S. stock market."