In international finance, few developments have a ripple effect like shifts in U.S. foreign policy. Now, with Donald Trump back in the White House in 2025, a renewed wave of uncertainty is sweeping through international withholding tax (WHT) compliance, dividend tax regimes, and withholding tax processes. For multinational investors, his return marks a continuation—and potential intensification—of the disruptions first seen during his previous term. Cross-border tax recovery is once again under pressure, with financial institutions bracing for more policy upheaval.
America First and Global Tax Cooperation
Trump’s second term has reaffirmed the “America First” doctrine, doubling down on the administration’s move away from multilateral cooperation. Global tax transparency efforts, such as the OECD’s Common Reporting Standard (CRS) and the BEPS (Base Erosion and Profit Shifting) project, remain at odds with U.S. priorities. The U.S. continues to operate outside the CRS framework and is now reassessing various international tax commitments.
This approach is causing increased fragmentation in global regulation. Financial institutions and investors attempting to uphold international WHT compliance are once again grappling with disconnected reporting systems. As a result, WHT refund claims continue to face delays, with greater exposure to penalties for non-compliance.
Pressure on Double Tax Treaties
Trump’s return has also revived scrutiny of double taxation agreements (DTAs). His administration has revisited treaties with several countries, including Switzerland, Luxembourg, and Ireland, questioning whether they serve U.S. interests.
This strategy has sparked concern among pension funds and institutional investors, many of whom rely on treaty benefits to maintain international WHT compliance. The stalling or revision of treaty terms in 2025 has already led to slower tax recovery and more administrative burdens.
Global Withdrawals and Tax Effects
Trump’s foreign policy continues to withdraw the U.S. from international frameworks that support cooperative tax enforcement. Having already exited the Paris Climate Accord and threatened to withdraw from the WTO, his administration now questions the value of U.S. participation in new OECD tax initiatives.
These actions have a chilling effect on global tax standards. More countries are adopting defensive tax policies to protect revenue, often increasing withholding tax rates on foreign dividends. This trend is eroding treaty relief options and making documentation for refunds more cumbersome—undermining efforts at international WHT compliance.
FATCA Enforcement and Transparency
Even as the U.S. retreats from global cooperation, it continues to aggressively enforce its own tax laws. The Foreign Account Tax Compliance Act (FATCA) remains central to Trump’s tax policy. Under his leadership, the IRS has expanded enforcement efforts, demanding even stricter compliance from foreign financial institutions.
This imbalance has grown starker in 2025. While foreign institutions must disclose extensive information on U.S. account holders, there is still no reciprocal data sharing from the U.S. As a result, many jurisdictions are responding by tightening their own WHT rules and delaying tax refunds for U.S.-based investors—worsening the climate for international WHT compliance.
International WHT Compliance: New Challenges for U.S. Investors
With Trump back in office, U.S. investors face a fresh wave of challenges. Diplomatic strains have resurfaced, complicating interactions with tax authorities abroad. Several countries have downgraded information-sharing protocols with the U.S., making it harder to process cross-border claims.
Investors are seeing longer wait times, stricter documentation requirements, and reduced cooperation—all of which make it harder to meet international WHT compliance obligations. European markets, in particular, are tightening their refund procedures, adding further pressure.
Treaty Uncertainty and International WHT Compliance
Many U.S. tax treaties remain in limbo as Trump’s second term reopens debates over their economic benefit. Treaties with countries like Japan, the Netherlands, and Canada are under review or pending ratification of new amendments.
In this context, U.S. investors must stay vigilant. Up-to-date knowledge of treaty status is essential, as is maintaining precise documentation. Although Trump has not issued executive orders specifically targeting withholding tax, his deregulatory agenda continues to fuel global uncertainty, creating new challenges for international WHT compliance.
Tax Recovery Specialists and WHT Compliance
As in Trump’s first term, specialist tax recovery firms such as Global Tax Recovery are playing a crucial role. The revived policy turbulence has increased demand for expert help in securing WHT refunds and navigating local compliance standards.
These professionals serve as essential intermediaries. They ensure that institutional investors stay aligned with international WHT compliance while mitigating the risks posed by evolving bilateral relationships and tightened tax authority requirements.
Looking Ahead: The Future of International WHT Compliance
With Trump now re-elected, investors must prepare for prolonged instability in the global tax landscape. Existing tax disputes remain unresolved, and new ones are emerging as his administration reasserts unilateral policies.
The future of international WHT compliance depends on proactive strategy. Investors should monitor treaty developments, seek out reliable recovery partners, and adapt quickly to shifting administrative rules. Those who act early will be better positioned to secure their rightful tax refunds and reduce exposure to avoidable costs.
Conclusion
Trump’s return has reignited many of the same tensions that marked his first term. His administration’s foreign policy continues to disrupt global tax cooperation, creating fresh challenges for investors claiming back taxes.
At Global Tax Recovery, we remain committed to helping investors navigate these complexities. Whether managing pension funds or multi-market portfolios, successful WHT refund strategies in 2025 demand expertise, agility, and a deep understanding of international WHT compliance.