Impact of Trump’s “Big Beautiful Bill” on International Commerce: Some Opportunities for Foreign Businesses
President Trump’s 1,118 page “Big Beautiful Bill” [“Trump BBB”] (H.R. 1, 119th Cong., 1st Sess.) signed on July 4, 2025, will change taxation and rules on both domestic and foreign taxpayers, businesses and investors. This nationalistic taxation law enjoyed special “budget reconciliation” procedural swiftness, the “Trump BBB.” Searching for some good news, this article identifies new opportunities for businesses and investors in (1) U.S. fossil energy products and services, (2) artificial intelligence tools and (3) products and services distributed in interstate sales via e-commerce.
These opportunities apply to both domestic and foreign companies, subject to any applicable tariffs. This tax law is separate from Trump’s tariff strategy that has yielded reduced tariff agreements (with 10% to 20% target base rates) with China, UK and Vietnam and which, as of Independence Day 2025, is still unresolved for other countries.
Fossil-Driven Energy: No More “Clean Energy” Industry. The Trump BBB repeals governmental funding of products and services for “green” energy programs adopted in 2022 under President Biden’s Inflation Reduction Act. The Trump BBB defunds federal low-emission electricity programs and corporate climate action commitments to reduce and monitor greenhouse gas emissions. It cancels “clean energy” production tax credits for electric vehicles, qualified commercial clean vehicles, energy efficient home improvement credits and residential clean energy credits. It also promotes coal mining by requiring the Department of Energy to issue leases for coal extraction from federal lands. It repeals the aggressive federal rules (EPA and NHTSA) mandating minimal vehicle emissions. In short, gasoline vehicles, oil wells on Alaskan federal lands, coal-mining and coal-fired electric facilities are welcome, subject to tariffs. See Sections 42101-42114 and 80141
Artificial Intelligence: A 10-Year Moratorium on State and Local Regulation. Focused on grid reliability and high energy consumption by AI developers, the Trump BBB opens the door to foreign-sourced AI services with minimal federal or state regulation. Currently, Arkansas, California, Colorado, Georgia, Illinois, Maryland, New Jersey, New York, New York City, Rhode Island, South Carolina, Tennessee, Utah and Virginia have adopted various laws regulating artificial intelligence. Such laws must now conform to a 10-year moratorium that has few exceptions. President Trump likes AI and appears happy with the National Institute of Science and Technology “test-evaluate-validate-verify” methodology as a sufficiently prudent precaution for using AI and process for ensuring continued United States leadership in artificial intelligence research and development.
While the federal government has not yet adopted a national AI Act (like the one enacted by the European Union), the Trump BBB reserves to the federal government the right to regulate all “artificial intelligence” activities. Thus, for 10 years after enactment, the Trump BBB will prohibit states and their political subdivisions from regulating “artificial intelligence models,” “artificial intelligence systems” or “automated decision systems” (as defined). This prohibition will not apply to state laws or regulations:
“(A) the primary purpose and effect of which is to remove legal impediments to, or facilitate the deployment or operation of, an artificial intelligence model, artificial intelligence system, or automated decision system;
“(B) the primary purpose and effect of which is to streamline licensing, permitting, routing, zoning, procurement, or reporting procedures in a manner that facilitates the adoption of artificial intelligence models, artificial intelligence systems, or automated decision systems;
“(C) does not impose any substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirement on artificial intelligence models, artificial intelligence systems, or automated decision systems unless such requirement (i) is imposed under Federal law; or (ii) in the case of a requirement imposed under a generally applicable law, is imposed in the same manner on models and systems, other than artificial intelligence models, artificial intelligence systems, and automated decision systems, that provide comparable functions to artificial intelligence models, artificial intelligence systems, or automated decision systems; and
“(D) does not impose a fee or bond unless (i) such fee or bond is reasonable and cost-based; and (ii) under such fee or bond, artificial intelligence models, artificial intelligence systems, and automated decision systems are treated in the same manner as other models and systems that perform comparable functions.”
The Trump BBB adopts broad definitions without considering core issues of copyright infringement, patentability and misappropriation. “Artificial intelligence’’ is already defined under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401) where “machine=based systems” can perceive, abstract and formulate options to human inquiries. “Artificial intelligence model’’ means a “software component of an information system that implements artificial intelligence technology and uses computational, statistical, or machine-learning techniques to produce outputs from a defined set of inputs.” “Artificial intelligence system’’ means “any data system, software, hardware, application, tool, or utility that operates, in whole or in part, using artificial intelligence.” Finally, the terms ‘‘automated decision system’’ means “any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output, including a score, classification, or recommendation, to materially influence or replace human decision making.” Section 43201.
This moratorium appears to permit state governments to prohibit an employer’s reliance on AI to decide on employment of particular individuals, as New York City does. For example, New York City, Local Law 144 of 2021 regarding automated employment decision tools (“AEDT”) prohibits employers and employment agencies from using an automated employment decision tool unless the tool has been subject to a bias audit within one year of the use of the tool, information about the bias audit is publicly available, and certain notices have been provided to employees or job candidates. Such bias reviews appear equivalent to human decision-making processes.
Query of litigators on validity of this aspect: Does a moratorium on state laws fit within the special legislative procedures of a budget reconciliation enactment? Ask the U.S. Supreme Court!
Federal Use of Artificial Intelligence. The Trump BBB appropriates $500 million through 2035 to modernize and secure Federal information technology systems through the deployment of commercial artificial intelligence and automation technologies for automation of decision systems and cybersecurity (Department of Commerce), and the replacement of antiquated business systems. Section 43201. Foreign-sourced AI is permitted under the Federal Acquisition Regulations, but might face strong domestic competition.
Promoting Low-Tax Digital Interstate Sales. Historically, consumer goods delivered from a warehouse in one state to a customer in another state constitute “interstate commerce,” which only Congress has the constitutional right to regulate. Conversely, if you “localize” by establish an office or warehouse in the consumer’s state, you are subject to that state’s local business net income tax, just like a “permanent establishment” under traditional U.S. income tax treaties.
To limit local income taxation of interstate sales, a 1959 law (Interstate Income Act of 1959, P.L. 86-272) protects interstate and international businesses by prohibiting states from imposing a net income tax on a business whose activities in the state are limited to soliciting orders for sales of tangible personal property. The 1959 law was adopted before the Internet, e-commerce, digital delivery of “goods” and the like.
The Trump BBB will prevent states from imposing a net income tax on businesses with employees or representatives physically engaged in the state in “any business activity that facilitates the solicitation of orders even if that activity may also serve some independently valuable business function apart from solicitation.” Section 70301. This vagueness will invite litigation to define the new limits on states’ taxing authority.
Foreigners in the U.S. Illegal aliens will lose tax and healthcare entitlements for “aliens.” Section 112101. Visa registration fees will be increased somewhat.
Conclusion. The U.S. remains a critical market for quality foreign goods and services. This new political environment redirects these investment and commercial opportunities without regard to national source or supply chain origins, subject to tariffs. Mergers and acquisitions may be of interest. For further details, please contact William Bierce.
Bierce & Kenerson, P.C. provides this information for general information only. Nothing on this website constitutes legal advice or establishes an attorney-client relationship. July 4, 2025.