Is the 30% Foreign Withholding Tax Making a Comeback?

Talk of reinstating a 30% withholding tax on foreign holders of US financial assets has sparked a wave of speculation, set in motion by remarks from the Trump administration’s economic team that includes language that can interpreted to the possibility that this tax, eliminated in 1984, may soon be reintroduced.

Fund manager Michael McNair pointed out this alleged plan by the White House to tax foreign holdings of US financial assets “hidden in plain sight.”

The said upcoming tax bill, he said, is derived from a speech by Trump’s economic chief, Stephen Ira Miran, in which five “burden-sharing” options were outlined. While four of those focus on reducing trade surpluses, he argues that the fifth option—foreign governments “writing checks to the Treasury”—is code for taxing their interest income.

Another observer, James Chanos, argued McNair’s interpretation but highlighted that “the fact that bringing back the foreign withholding tax on US financial assets is even being remotely considered…is another very big deal.”

“It does require connecting some dots,” McNair replies, but he insists the logic is unmistakable when looking at the bigger picture. He explains that Miran framed both US military security and the dollar’s reserve status as global public goods for which foreign holders of US assets should help pay. According to McNair, this proposal has created “emergency meetings in finance ministries across Asia,” even though mainstream financial media has largely overlooked it.

Should this measure indeed move forward, it would mark a profound change in tax policy. For many foreign investors, avoiding the 30% withholding rate has been a core incentive to purchase and hold US Treasuries.

US Treasury yields climbed on Wednesday, with the 10-year briefly reaching 4.5% and the 30-year hitting a two-month high above 4.8%, as investors reacted to Trump’s new reciprocal tariffs—including a 104% levy on Chinese imports. Fears of recession and stubborn inflation sparked foreign selling and pushed the latest 3-year note auction into “weak” territory, hinting at broader market unease.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

‘Time to Make a Deal’: Trump Threatens New Trade Restrictions on Russia Over Ukraine War

President Donald Trump has warned Russia of severe economic consequences if the ongoing war in...

Thursday, January 23, 2025, 03:47:00 PM

Trump Tariffs After Tariffs: 25% On Steel And Aluminum On Top Of Initial 25% Generic Dues

A White House official confirmed that new 25% tariffs on steel and aluminum will be...

Wednesday, February 12, 2025, 12:07:00 PM

China Hits Back: Halts $40B Boeing Order, Restricts US Tech Firms

China has launched a sweeping and strategic retaliation against the US in response to long-standing...

Wednesday, April 16, 2025, 10:40:00 AM

Trump’s Tariff Revenue Reaches $500 Million, Below Trump’s Claims

US Customs and Border Protection has collected approximately $500 million from President Donald Trump’s latest...

Saturday, April 19, 2025, 11:03:00 AM

Ackman Walks Back ‘Conflict of Interest’ Claims Against Commerce Secretary

Billionaire investor Bill Ackman retracted his criticism of US Commerce Secretary Howard Lutnick on Tuesday,...

Wednesday, April 9, 2025, 12:56:00 PM