Donald Trump: Wall Street warns of consequences of new budget law

A JP Morgan spokesperson told the newspaper that the ruling would have "significant implications for U.S. and foreign companies." This comes at a time when foreign investors are already withdrawing from U.S. markets. At the same time, the U.S. is more dependent than ever on foreign investors to finance its growing Treasury debt.

“Unfair tax states” are likely to include EU states and the United Kingdom

The measure is aimed at countries that the US considers to be "unfair tax jurisdictions." According to the FT, citing the law firm Davis Polk, these include most EU countries, the United Kingdom, Australia, and Canada . For foreign investors, Article 899 would increase taxes on dividends and interest from US stocks and some corporate bonds by 5 percentage points annually over four years. The previously tax-exempt investments of sovereign wealth funds in the US would also be taxed in the future.