US Tax on Foreign Money Is Power Play, Commerzbank Analyst Says

A proposed measure in Donald Trump’s flagship tax-and-spending bill is a sign that the US administration is exploring new tools to force other countries to bend to its will, according to Ulrich Leuchtmann, head of FX research at Commerzbank AG.

The item — introduced in legislation that passed the House last week as Section 899 and titled “Enforcement of Remedies Against Unfair Foreign Taxes” — calls for, among other things, increasing tax rates for individuals and companies from countries whose tax policies the US deems “discriminatory.”