Section 899 of the agreement allows the government toincrease taxes on investments and companies in countries which considers that they have punitive tax policies.
The measure would affect foreign companies with branches in United States, to American companies with foreign owners and foreign investors. Various analysts
international experts claim that The measure could discourage the entry of foreign investment into the country, adding pressure to the dollar and weakening demand for US assets. All this comes at a time when investor confidence in the country is going through a period of extreme fragility, while the United States continues to increase its dependence on foreign capital to finance its debt.
Back to tariffs
In a new unexpected turn of events, the Trump administration has suffered its biggest legal setback and, just 24 hours apart, its biggest victory to date. On Wednesday, May 28, Court of International Trade, decreed that the tariffs imposed by the US government, based on the National Emergency Economic Powers Act (IEEPA) were struck down. The Court held that there was no such thing as an extraordinary national emergency that would justify the use of the law. This affected the so-called "reciprocal tariffs" that Trump announced on "Liberation Day"already taxes to China, Mexico and Canada for fentanyl trafficking and border control, respectively. Following a White House appeal, a federal court agreed that authorities can keep the taxes in place until the legal dispute, which is expected to end up in the Supreme Court, where the president has appointed six of the nine judges, is resolved.
Source: CESCE
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
