A pivotal section within the One Big Beautiful Bill Act—President Trump’s flagship tax and spending legislation currently under Senate review—could undermine the administration’s agenda for U.S. energy dominance.
Section 899 of the bill, officially titled “Enforcement of remedies against unfair foreign taxes,” aims to impose higher tax rates on foreign companies operating in the United States that originate from countries deemed to levy “unfair foreign taxes.” The provision primarily targets tax policies in the European Union and the United Kingdom, which the Trump administration alleges discriminate against American firms, particularly major U.S. technology companies.
However, the implications of Section 899 extend beyond the tech sector. Energy giants headquartered in Europe, such as the UK’s Shell and BP, France’s TotalEnergies, and Spain’s Repsol, stand to face increased tax burdens on their U.S. operations. According to columnist Ron Bousso, these higher tax rates could significantly reduce the profits of these firms and potentially deter future investment in expanding American oil and gas production.
This consequence runs counter to President Trump’s “drill, baby, drill” campaign mantra and the early executive orders and legislation intended to promote domestic energy development. Industry estimates suggest that Shell could see a reduction of up to $800 million annually in free cash flow from its Gulf of Mexico operations alone, with BP facing a potential $300 million yearly loss.
Beyond individual companies, the broader impact of Section 899 raises alarms among investment and trade groups. The Investment Company Institute (ICI), representing U.S. fund managers, cautions that the provision “could limit foreign investment to the U.S.—a key driver of growth in American capital markets that ultimately benefits American families saving for their futures.”
Similarly, the Global Business Alliance, a trade association for international firms in the U.S., warns that the measure could result in the loss of 700,000 American jobs and slash U.S. GDP by $100 billion annually. These projections rely on independent analysis conducted by the EY Quantitative Economics and Statistics (QUEST) practice.
As the Senate continues deliberations on the One Big Beautiful Bill, Section 899 remains a flashpoint, highlighting the tension between protecting domestic interests and maintaining an open investment climate critical to U.S. economic growth and energy security.
