The Treasury has asked Congress to scrap a provision in Donald Trump’s flagship budget bill that allows the US government to raise taxes on foreign investments from select countries, reversing a plan that Wall Street warned could roil markets.

Treasury Secretary Scott Bessent has formally asked Congress to delete a controversial provision buried in President Donald Trump’s newest budget plan. The section, known as Section 899, would’ve allowed the US to slam companies and investors from other countries with additional taxes,

U.S. Treasury Secretary Scott Bessent on Thursday asked Republicans in Congress to remove a "retaliatory tax" proposal that targets foreign investors from their sweeping budget legislation, as lawmakers struggled to find a path forward on the bill.