British Ambassador to the U.S. Peter Mandelson is appealing to Congress to think again about the proposed new retaliatory tax on certain foreign investment in the U.S.

“I think that there’s something wrong in principle that you should punish a country’s businesses and individuals in America because you don’t like what their governments are doing at home,” Mandelson said of Section 899 of the House’s “big, beautiful bill” to implement Trump’s agenda.

Section 899 would create a retaliatory tax on nationals of countries that impose “unfair foreign taxes” on American businesses.

“If you’ve got an argument with their governments, then take it out on the governments. Don’t take it out on the businesses and the individuals,” he added.

Mandelson also believes this new foreign investor tax is “counterproductive” for the United States.

— Sarakshi Rai

Tax Watch is a regular feature focused on the fight over tax reform and extending the 2017 Trump tax cuts this year. Email a tip