Is Trump’s ‘Revenge Tax’ About to Shake Your US Investments—And How to Outsmart the Storm Before It Hits?
Nominal USD annual total return data from Aswath Damodaran. Fund costs not included. June 2025.
In the worst-case 50% WHT scenario you’d have booked a 12.1% annualised return instead of a 12.7% annualised return over ten years.
As I say: not great. It does hurt!
But you would still have been better off investing in US equities versus the World ex-US over this period, even if ultimately exposed to the hardcore version of Section 899.
Tax tail meet investment dog
Of course we can argue that the S&P 500 would have been less attractive to global investors, or that US holdings will henceforth come with greater political risk attached…
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