 "Speaker of the House Mike Johnson, R-La, surrounded by Republican members of Congress, signs US President Donald Trump's signature bill of tax breaks and spending cuts, July 3, 2025, at the Capitol in Washington, DC, US. File Image/AP")
US President Donald Trump’s newly passed legislative package, also known as the One Big Beautiful Bill Act, marks one of the most sweeping overhauls of America’s tax, trade, and immigration systems in recent times.
While the bill is pitched as a way to “restore American strength” and redirect national spending to domestic priorities, its global consequences are wide-ranging, particularly for non-Americans across the world.
Here are 7 key ways the bill is expected to shape lives and economies outside the United States:
1. Remittance tax to hit foreign households
The bill imposes a 1% tax on cash remittances sent from the US to other countries. This will affect millions of families in major remittance-dependent economies like India, Mexico, and the Philippines, potentially reducing their annual income by billions of dollars. The tax does not apply to wire or bank-based transfers.
2. Withholding uncertainty for foreign investors
While the bill does not impose new withholding taxes on foreign investors, it includes broad corporate tax changes that could affect foreign-owned US assets. Global banks, pension funds, and sovereign wealth entities are bracing for potential regulatory changes that could erode returns on US-linked investments.
3. Trade tensions may escalate
The repeal of the “de minimis” exemption means that small shipments from foreign retailers into the US, previously untaxed if valued under $800, will now be subject to tariffs. This could disproportionately hit exporters in China, the EU, and Latin America, possibly sparking retaliatory trade measures.
Impact Shorts
More Shorts4. Climate commitments rolled back
The bill rolls back key clean energy tax credits established under the Inflation Reduction Act, including subsidies for electric vehicles, solar panels, and wind energy projects. This may stall momentum in global green supply chains, particularly among US-EU climate partnerships and Asia-based component suppliers.
5. Tighter US immigration access
The legislation ramps up funding for ICE and Border Patrol and introduces a minimum $100 fee on asylum applications. Although lower than earlier proposals, the new cost barriers could impact international students, temporary workers, and refugees, making the path to the US more expensive and bureaucratic.
6. Ripple effects in global markets
From taxes on remittances to regulatory changes in energy and trade, the bill could cause a shift in global investment strategy, increased dollar volatility, and a realignment of financial exposure away from the US by emerging economies.
7. Concerns over US global commitments
While the bill does not explicitly cut foreign aid, critics warn that its massive domestic spending increases — including over $170 billion for immigration enforcement — could lead to future reductions in US contributions to global health, development, and humanitarian programs.
President Trump’s “big beautiful” promise is already reshaping the US economy, and its effects will be felt far beyond American borders. From higher remittance costs and tighter visa controls to new barriers for global trade and climate cooperation, the bill signals a sharp turn inward, with real consequences for the rest of the world.