Trade Deals Could Eliminate Need for ‘Revenge Tax’, Hassett Says

Kevin Hassett, director of the National Economic Council, speaks to members of the media following a television interview outside the White House in Washington, DC, US, on Tuesday, May 27, 2025. Hassett told CNBC "we'll probably see a few more deals, even this week," with India being among the countries that are close to the finish line when it comes to securing a deal. Photo by Stefani Reynolds /Bloomberg

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(Bloomberg) — Donald Trump’s top economic adviser on Wednesday said the administration is pushing US trading partners to move swiftly on deals that make the “revenge tax” included in the president’s cornerstone legislation unnecessary.

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Congress could remove the provision, called Section 899, from the tax bill this week if countries “issue policy pronouncements today or tomorrow,” White House National Economic Council Director Kevin Hassett said on Fox Business.

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“Maybe it doesn’t have to be in the bill,” Hassett said. 

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The “revenge tax” raises taxes on foreign companies and investors from countries that the US determines have been unfairly taxing US companies. That includes Canada, the UK, France and Australia, which impose “digital services taxes” on large technology companies like Meta Platforms Inc. Trump administration officials and Republican lawmakers have derided digital services taxes as discriminatory. 

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But it’s unlikely more than a dozen countries abruptly eliminate — or even pledge to do away with — their digital services taxes before Congress passes the tax bill as soon as this weekend. These taxes are politically popular, especially in European countries.

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Dozens more countries have adopted the 15% global minimum tax rules, which both the Senate and House bills target. These, too, would take months to repeal, particularly in EU countries.

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“We’re in negotiations over tax issues, and those tax issues that we negotiate affect the trade deals as well,” Hassett said. “We’re going to finish the tax business and then there are going to be a lot of deals signed right after that.” 

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Hassett on Tuesday said there are a few countries “waiting to announce” trade deals until after the tax bill is passed.

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Trump has said he wants to sign the multi-trillion dollar tax and spending bill into law by July 4. It’s unclear whether Congress will be able to meet that self-imposed deadline, with issues like Medicaid cuts and the state and local tax deduction still being debated. 

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The Senate is also awaiting rulings from the chamber’s parliamentarian about whether certain policy provisions, including the Section 899 language, comply with strict rules for passing the legislation by a simple majority. 

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