Trump’s ‘Revenge’ Tax Could See Dollar Dive 5%, Allianz CIO Says

A foreign tax provision in US President Donald Trump’s massive fiscal package could trigger a 5% plunge in the dollar and send equities reeling if it takes effect, according to Allianz SE’s chief investment officer Ludovic Subran.

The item, introduced in legislation that passed the US House in May as Section 899, is “exactly what people don’t spend enough time on,” Subran said in an interview on Bloomberg TV on Tuesday. The provision would increase tax rates for individuals and companies from countries whose tax policies the US deems “discriminatory.”

If deployed, it would be a “big ...