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US Senate advances Trump 'big beautiful' tax bill despite debt warning

US Senate advances Trump 'big beautiful' tax bill despite debt warning

Time of India6 hours ago

Senate Republicans pushed forward President Donald Trump's sweeping tax cut and spending bill on Sunday in a marathon weekend session even as a nonpartisan forecaster said it would add an estimated $3.3 trillion to the nation's debt over a decade.The estimate by the Congressional Budget Office of the bill's hit to the $36.2 trillion federal debt is about $800 billion more than the version passed last month in the House of Representatives.
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Canada ‘elbows up' as Carney backs down on digital tax to have trade deal with Trump
Canada ‘elbows up' as Carney backs down on digital tax to have trade deal with Trump

First Post

time35 minutes ago

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Canada ‘elbows up' as Carney backs down on digital tax to have trade deal with Trump

Canada has dropped its plan to tax US tech firms and resumed trade talks with America. The move has left many Canadians disillusioned, as the 'elbows up' slogan that once signalled standing firm against US pressure has now become merely symbolic. read more US President Donald Trump and Canadian Prime Minister Mark Carney. The Canadian PM earlier in May said his government is talking to the US about joining the Golden Dome missile defence program. AFP 'Elbows up', a slogan that began as a protest against President Donald Trump's tariffs, has now become somewhat ironic after Canada resumed trade talks with the US. Prime Minister Mark Carney announced that his government had dropped its plan to tax American technology companies. Many Canadians took to social media to share their disappointment, with some calling the move an 'elbows down' decision. Others mocked the government, posting comments such as: 'Good job, Liberals! You got duped! 'Elbows up' actually means tariffs up!' STORY CONTINUES BELOW THIS AD 'We are starting to get a sense of the character of the government and that it is a kind of chicken dance government. It is elbows up, elbows back down, elbows up, elbows back down.' — Garnett Genuis (@GarnettGenuis) June 30, 2025 'We are starting to get a sense of the character of the government, and that it's a kind of chicken-dance government. It's elbows up, elbows back down, elbows up, elbows back down,' said Canada's Shadow Minister of Employment, Garnett Genuis. Origins of 'elbows up' slogan 'Elbows up' became a slogan Canadians used to show resistance against US trade pressure. The phrase comes from hockey, where players keep their elbows up to protect themselves and hold their ground in tight situations. It grew popular after comedian Mike Myers used it in a sketch on Saturday Night Live, and Prime Minister Mark Carney echoed it in speeches to signal Canada's determination during disputes over US tariffs and political tensions. Started in hockey, meaning to protect yourself and push back Became a national slogan, appearing on signs, merchandise, and in political speeches, reflecting Canada's resolve to defend its economic and political interests Trade talks back on track as Carney backs down Canadian Prime Minister Mark Carney said on Sunday that trade talks with the United States have resumed after Canada dropped its plan to tax American tech companies. US President Donald Trump had paused trade discussions on Friday because of Canada's proposed Digital Services Tax, which he called 'a direct and blatant attack on our country.' The Canadian government announced it would cancel the tax 'in anticipation' of a trade deal. The tax was due to take effect on Monday. Carney's office confirmed that he and Trump had agreed to restart negotiations. STORY CONTINUES BELOW THIS AD 'Today's announcement will help resume talks aiming for the 21 July 2025 deadline we set at this month's G7 Leaders' Summit in Kananaskis,' Carney said in a statement.

US dollar index drops 11% in H1 2025: What's ailing the greenback?
US dollar index drops 11% in H1 2025: What's ailing the greenback?

Mint

time38 minutes ago

  • Mint

US dollar index drops 11% in H1 2025: What's ailing the greenback?

The US dollar, the most powerful currency in the world, has had a tough period as it has been on a steady declining trend, ever since Donald Trump took office in January 2025. It has ended the last five months in the red and is on track to close the current month lower as well, a rare occurrence for the greenback, which hasn't seen a six-month losing streak in recent decades. The world's reserve currency has fallen nearly 11% over the past six months against a weighted basket of major currencies. On Thursday, it dropped below the 97 mark, hitting its lowest level since February 2022. Global demand for the US dollar appears to be weakening, as major central banks and non-US investors are showing less interest in dollar-denominated assets than they did earlier. Recent reports suggest that European institutional investors, especially pension funds and insurers, have reduced their dollar exposure to the lowest levels since 2022. Meanwhile, China, the second-largest holder of US debt, is rapidly selling Treasuries in a bid to end dollar dominance. Other major Asian central banks are also shifting away from the dollar to add more gold to their forex portfolios'. This shift in sentiment has been driven, in part, by growing concerns over President Donald Trump's economic policies. While the administration has positioned these measures as a path to renewed prosperity, they have failed to reassure markets. Several of the policies signed and proposed by Trump have received warnings from global institutions and the Federal Reserve itself, citing potential risks to economic growth and inflationary pressures. The traditional flight to safety, where investors sell off riskier assets and move into US Treasury bonds and dollars during periods of global uncertainty, has come under strain. This long-standing trend is rooted in the perception of the United States as the world's largest and most diversified economy, with a consistent track record of debt repayment and historically high credit ratings. However, investor sentiment has deteriorated amid concerns over a widening US government debt and a rise in interest payments, with recent estimates suggesting that US debt, which currently sits at $36.21 trillion, may swell toward 134-156% of GDP over the next decade from the current 120% of GDP. While concerns over widening debt are weighing on investor sentiment, Donald Trump's unorthodox policy measures, such as raising tariffs on imported goods and proposing a massive new spending bill that recently cleared a Senate hurdle, have further dampened market mood. The sweeping reciprocal tariffs on all major trading partners, currently on hold, have disrupted the global trade order that had been in place since World War II. Additionally, Trump has undertaken cost-cutting measures that include reducing federal employment and public spending, which have reportedly affected US IT giants, such as Accenture. He also introduced various new schemes, such as the Gold Card, sometimes referred to as the Trump Card, which gives wealthy foreigners an easier path to US citizenship, which is expected to cost around five million dollars in an aim to increase federal revenue. Meanwhile, global credit rating agencies have taken note of Trump's recent policy shifts, with Moody's in May downgrading the US sovereign credit rating by one notch to 'Aa1,' citing sustained fiscal deficits and increasing interest burdens, and the agency also shifted its outlook on the US from 'negative' to 'stable,' reflecting the structural fiscal challenges now facing the world's largest economy. Trump's policies not only dampened the consumer sentiment in the US but also created an unfavorable environment for companies to make future investments, as they are afraid that Trump would make alterations or announce new policies, according to the market experts. On the other hand, Trump himself prefers a weaker dollar, as he believes it would give US exports a competitive edge in the global market. He had earlier accused several countries of artificially inflating the dollar to make their products cheaper compared to those made in the US. Apart from the economic concerns, the recent expectations that a larger rate cuts coming in the second half of the 2025 has further added pressure to the dollar. While US federal reserve chair Jerome Powell is awaiting further clarity on the economy before making another rate cut decision, he is reportedly facing increasing pressure from Donald Trump to resume rate cuts in order to accelerate growth. Although the Fed has largely ignored Trump's public criticism so far, expectations are growing that the president could influence the central bank through informal channels. Wall Street has been buzzing with speculation about a potential 'shadow chair' — someone Trump might position as a vocal critic of the Fed's current stance until Powell's term ends in May 2026. On Thursday, traders increased their bets on rate cuts this year, with the probability of three reductions rising to about 60%, up from strong expectations of just two cuts earlier in the week, according to CME Group data. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Donald Trump calls Elon Musk ‘wonderful', but says row over Big Beautiful tax bill was not ‘appropriate'
Donald Trump calls Elon Musk ‘wonderful', but says row over Big Beautiful tax bill was not ‘appropriate'

Mint

time39 minutes ago

  • Mint

Donald Trump calls Elon Musk ‘wonderful', but says row over Big Beautiful tax bill was not ‘appropriate'

Expressing his like for billionaire Elon Musk, Donald Trump in an interview with Fox News, called his a 'wonderful guy', but noted that their very public disagreement on the United States president's marquee 'One Big Beautiful Bill', was not 'appropriate'. This came just before the Tesla chief renewed his criticism of Donald Trump's nearly dollar tax and spending b$3 trillion dollar tax and spending bill, and warned that cutting sops for electric vehicles would have significant negative impact on the EVs and clean energy sectors. Elon Musk's outrage came just before the US Senate on June 28 took up the Bill overnight, and passed it through the first hurdle by a narrow margin of 51-49 votes for debate and consideration. The bill is expected to be complete by June 30 (local US time). When asked about the public spat with Elon Musk, Donald Trump told Fox News that the world's richest man 'got a little bit upset'. 'I haven't spoken to him much, but I think Elon is a wonderful guy, and I know he's going to do well always. But he got a little bit upset, and you know that wasn't appropriate,' Donald Trump said in the interview which aired on June 29. The Senate tax bill seeks to put an end to a popular $7,500 consumer tax credit for EVs, much quicker than the earlier proposal, as per a Bloomberg report. The previous version sought to end the incentive at the end of this year for most EV sales, the new version terminates the credit after September 30, it added. The report noted that tax credits for the purchase of used and commercial EVs would end at the same time. Elon Musk posted on his social media platform X about the bill, which the Senate advanced in a contentious vote late Saturday. He has been at loggerheads with the Trump administration since leaving his posts as chief of the Department of Government Efficiency (DOGE). The bill would destroy millions of US jobs and give 'handouts to industries of the past while severely damaging industries of the future,' Musk said. The tech billionaire's latest criticism of the package threatens to reawaken his public rift with Donald Trump that began after the world's richest man left his cost-cutting job in the administration. (With inputs from Bloomberg)

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