AMP Halts Long-Term US Investments Amid Trump Tax Uncertainty

AMP, a top Australian asset manager, has halted new long-term investments in the US due to uncertainty over President Donald Trump's policies, particularly the proposed "revenge" tax on non-US businesses. The firm's $88 billion in assets under management have significant exposure to the US, and it is reallocating funds from US-listed infrastructure to private infrastructure in Europe and Australia. Other Australian investors, including pension funds and sovereign wealth funds, are also reassessing their US investments amid growing uncertainty.

Australian asset manager AMP Ltd. has frozen new long-term investments in the United States due to mounting uncertainty over President Donald Trump's policies, particularly the proposed "revenge" tax on non-US businesses [1]. The firm, which manages A$135 billion ($88 billion) in assets, has significant exposure to the US and is reallocating funds from US-listed infrastructure to private infrastructure in Europe and Australia.

AMP's Head of Portfolio Management, Stuart Eliot, cited the Section 899 provision in Trump's domestic policy legislation as a key driver for halting new investments. This provision, part of Trump's "One Big Beautiful Bill," has been dubbed the "revenge" tax for targeting countries with tax policies the US deems unfair. The bill passed the House of Representatives last month and is now before the Senate, where Republicans are seeking to delay the tax and make it less onerous.

Australia's sovereign wealth fund, the Future Fund, also warned that the US is becoming a more uncertain investment destination that requires a higher risk premium. Section 899 will "potentially and dramatically" escalate tax rates for Australian investors, said Future Fund Chair Greg Combet [1].

The proposed tax on super balances above A$3 million also poses a concern for retirement savers in Australia. The Super Members Council, which represents some of the largest pension funds in Australia, has moved to reassure the sector and Australian consumers about the impact of Section 899 [1].

AMP is reallocating about A$1 billion away from global listed infrastructure, primarily in the US, into private infrastructure in Europe and Australia. While the process was underway prior to Trump’s second term and based on individual opportunities, Eliot said the current environment underscored how long-term, illiquid investments in the US were just not appealing. "There’s more uncertainty in the US than elsewhere. It’s just easier to invest outside the US," he said [1].

The cancellation of Australian Prime Minister Anthony Albanese's meeting with Trump, due to the president's focus on the conflict between Israel and Iran, adds to the uncertainty surrounding US policy. Albanese had intended to discuss trade and the Aukus accord with Trump, but the meeting was scrapped [3].

The proposed "revenge" tax and the uncertainty surrounding US policy are prompting Australian investors to reassess their positions. The Super Members Council has reassured the sector and Australian consumers about the impact of Section 899, noting that investments are managed by highly skilled investment experts [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-06-17/trump-revenge-tax-prompts-amp-to-halt-long-term-us-investments
[3] https://www.bloomberg.com/news/articles/2025-06-17/australian-pm-s-meeting-with-trump-scrapped-after-g-7-departure