The threat to the Organisation for Economic Co-operation and Development’s corporate tax initiative comes, in part, from a new measure introduced by the US House of Representatives - the Defending American Jobs and Investment Act.

It aims to protect US jobs and US economic growth, by threatening reciprocal tax penalties for any country targeting Americans with what may be deemed “unfair” taxes under the initiatives of the OECD.

The US stance could easily unnerve any number of the more than 135 countries who became signatories to the global tax agreement, potentially weakening the measure’s future.

Bryan Dooley, the chief investment officer of LOM Asset Management noted: “This signals a move to question or undermine the right of other countries, including Bermuda, to determine their tax rules for American multinationals operating within their borders.”

He said that as a low-tax location, Bermuda could face punitive actions, if the US enforces countermeasures against jurisdictions perceived as disproportionately benefiting from American corporations through tax policies.

President Trump is in stark opposition to the position taken by his predecessor.

Mr Dooley said Bermuda’s economy relied heavily on international business, particularly insurance, reinsurance and other financial services.

“The Trump Administration’s stance challenges the global tax framework that currently allows such multinationals to benefit from Bermuda’s tax environment,” he said.

“A US-led crackdown could reduce the attractiveness of Bermuda for American corporations, impacting its economic stability.”

He also called Trump’s promises to lower taxes in the United States a negative for Bermuda.

“The lower the taxes are in the US, the less of an incentive a company has to incorporate, or be domiciled, in Bermuda,” Mr Dooley said.

However, the impact will be neutral if Trump keeps taxes where they are now.

“Trump likes business,” the investment specialist said. “He has a lot of wealthy people in his inner circle. To the extent that Bermuda is a jurisdiction that attracts high-net-worth people to live and keep assets, that is a positive thing.”

President Trump has pledged to eliminate double taxation for Americans working overseas but has not yet given specific details.

An article published in Forbes magazine last October said that Americans abroad faced an array of tax compliance dilemmas for themselves and their families, causing some expatriates to lose their banking relationships and home loans. To cope, some Americans have revoked their US citizenship.

Around 8,000 Americans live in Bermuda, including Mr Dooley.

“I am an American living in Bermuda and still pay taxes back into the American system,” he said.

He said from an economic standpoint, Trump had already been president before so he would probably not deviate a lot from what he did the last time.