In 4 July ceremony, Trump signs tax and spending bill into law
Trevor Hunnicutt
US President Donald Trump (C) shows his signature on the "Big Beautiful Bill Act" at the White House in Washington, DC, on 4 July, 2025.
Photo:
AFP / Pool
US President Donald Trump has signed into law a massive package of tax and spending cuts at the White House, staging an outdoor ceremony on the Fourth of July holiday that took on the air of a Trump political rally.
With military jets flying overhead and hundreds of supporters in attendance, Trump signed the bill one day after the Republican-controlled House of Representatives narrowly approved the signature legislation of the president's second term.
The bill, which will fund Trump's immigration crackdown, make his 2017 tax cuts permanent, and is expected to knock millions of Americans off health insurance, was passed with a 218-214 vote after an emotional debate on the House floor.
"I've never seen people so happy in our country because of that, because so many different groups of people are being taken care of: the military, civilians of all types, jobs of all types," Trump said at the ceremony, thanking House Speaker Mike Johnson and Senate Majority Leader John Thune for leading the bill through the two houses of Congress.
"So you have the biggest tax cut, the biggest spending cut, the largest border security investment in American history," Trump said.
Trump scheduled the ceremony on the South Lawn of the White House for the 4 July Independence Day holiday, replete with a flyover by stealth bombers and fighter jets like those that took part in the recent US strikes on nuclear facilities in Iran. Hundreds of Trump supporters attended, including White House aides, members of Congress, and military families.
After a speech that included boastful claims about the ascendance of America on his watch, Trump signed the bill, posed for pictures with Republican congressional leaders and members of his cabinet, and waded through the crowd of happy supporters.
The bill's passage amounts to a big win for Trump and his Republican allies, who have argued it will boost economic growth, while largely dismissing a non-partisan analysis predicting it will add more than $3 trillion to the nation's $36.2 trillion debt.
While some lawmakers in Trump's party expressed concerns over the bill's price tag and its hit to healthcare programs, in the end just two of the House's 220 Republicans voted against it, joining all 212 Democrats in opposition.
The tense stand-off over the bill included a record-long floor speech by House Democratic Leader Hakeem Jeffries, who spoke for eight hours and 46 minutes, blasting the bill as a giveaway to the wealthy that would strip low-income Americans of federally-backed health insurance and food aid benefits.
Democratic National Committee chairperson Ken Martin predicted the law would cost Republicans votes in congressional elections in 2026.
"Today, Donald Trump sealed the fate of the Republican Party, cementing them as the party for billionaires and special interests - not working families," Martin said in a statement.
"This legislation will hang around the necks of the GOP for years to come. This was a full betrayal of the American people. Today, we are putting Republicans on notice: you will lose your majority."
- Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
1News
an hour ago
- 1News
Trump to put 25% tariffs on Japan, South Korea
US President Donald Trump set a 25% tax on goods imported from Japan and South Korea, as well as new tariff rates on a dozen other nations that would go into effect on August 1. Trump provided notice by posting letters on Truth Social that were addressed to the leaders of the various countries. The letters warned them to not retaliate by increasing their own import taxes, or else the Trump administration would further increase tariffs. "If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge," Trump wrote in the letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung. The letters were not the final word from Trump on tariffs, so much as another episode in a global economic drama in which he has placed himself at the centre. His moves have raised fears that economic growth would slow to a trickle, if not make the US and other nations more vulnerable to a recession. But Trump is confident that tariffs are necessary to bring back domestic manufacturing and fund the tax cuts he signed into law last Friday. He mixed his sense of aggression with a willingness to still negotiate, signalling the likelihood that the drama and uncertainty would continue and that few things are ever final with Trump. ADVERTISEMENT Imports from Myanmar and Laos would be taxed at 40%, Cambodia and Thailand at 36%, Serbia and Bangladesh at 35%, Indonesia at 32%, South Africa and Bosnia and Herzegovina at 30% and Kazakhstan, Malaysia and Tunisia at 25%. Trump placed the word "only" before revealing the rate in his letters to the foreign leaders, implying that he was being generous with his tariffs. But the letters generally followed a standard format, so much so that the one to Bosnia and Herzegovina accidentally addressed its woman leader, Željka Cvijanović, as "Mr. President". The morning's headlines in 90 seconds, including what the jury saw at the mushroom murder trial, where house prices are climbing, and why YouTube's biggest star has business plans in NZ. (Source: 1News) Trade talks have yet to deliver several deals White House press secretary Karoline Leavitt said that Trump was by setting the rates himself creating "tailor-made trade plans for each and every country on this planet and that's what this administration continues to be focused on". Following a now well-worn pattern, Trump plans to continue sharing the letters sent to his counterparts on social media and then mail them the documents, a stark departure from the more formal practices of all his predecessors when negotiating trade agreements. The letters are not agreed-to settlements but Trump's own choice on rates, a sign that the closed-door talks with foreign delegations failed to produce satisfactory results for either side. ADVERTISEMENT Wendy Cutler, vice president of the Asia Society Policy Institute who formerly worked in the office of the US Trade Representative, said the tariff hikes on Japan and South Korea were "unfortunate". "Both have been close partners on economic security matters and have a lot to offer the United States on priority matters like shipbuilding, semiconductors, critical minerals and energy cooperation," Cutler said. Trump still has outstanding differences on trade with the European Union and India, among other trading partners. Tougher talks with China are on a longer time horizon in which imports from that nation are being taxed at 55%. The office of South African President Cyril Ramaphosa said in a statement that the tariff rates announced by Trump characterised the trade relationship with the US, but it would "continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States" after having proposed a trade framework on May 20. White House press secretary Karoline Leavitt speaks with reporters in the James Brady Press Briefing Room at the White House. (Source: Associated Press) Higher tariffs prompt market worries, more uncertainty ahead The S&P 500 stock index was down 0.8% in Monday trading, while the interest charged on 10-year US Treasury notes had increased to nearly 4.39%, a figure that could translate into elevated rates for mortgages and auto loans. ADVERTISEMENT Trump has declared an economic emergency to unilaterally impose the taxes, suggesting they are remedies for past trade deficits even though many US consumers have come to value autos, electronics and other goods from Japan and South Korea. The constitution grants Congress the power to levy tariffs under normal circumstances, though tariffs can also result from executive branch investigations regarding national security risks. Trump's ability to impose tariffs through an economic emergency is under legal challenge, with the administration appealing a May ruling by the US Court of International Trade that said the president exceeded his authority. It's unclear what he gains strategically against China — another stated reason for the tariffs — by challenging two crucial partners in Asia, Japan and South Korea, that could counter China's economic heft. "These tariffs may be modified, upward or downward, depending on our relationship with your Country," Trump wrote in both letters. Because the new tariff rates go into effect in roughly three weeks, Trump is setting up a period of possibly tempestuous talks among the US and its trade partners to reach new frameworks. "I don't see a huge escalation or a walk back — it's just more of the same," said Scott Lincicome, a vice president at the Cato Institute, a libertarian think tank. Trump initially roiled the financial markets by announcing tariff rates on dozens of countries, including 24% on Japan and 25% on South Korea. In order to calm the markets, Trump unveiled a 90-day negotiating period during which goods from most countries were taxed at a baseline 10%. So far, the rates in the letters sent by Trump either match his April 2 tariffs or are generally close to them. ADVERTISEMENT The 90-day negotiating period technically ends on Wednesday, even as multiple administration officials suggested the three-week period before implementation is akin to overtime for additional talks that could change the rates. Trump plans to sign an executive order on Monday to delay the official tariff increases until Aug. 1, Leavitt said. Congressionally approved Trade agreements historically have sometimes taken years to negotiate because of the complexity. Administration officials have said Trump is relying on tariff revenues to help offset the tax cuts he signed into law on July 4, a move that could shift a greater share of the federal tax burden onto the middle class and poor as importers would likely pass along much of the cost of the tariffs. Trump has warned major retailers such as Walmart to simply "eat" the higher costs, instead of increasing prices in ways that could intensify inflation. Josh Lipsky, chair of international economics at The Atlantic Council, said that a three-week delay in imposing the tariffs was unlikely sufficient for meaningful talks to take place. "I take it as a signal that he is serious about most of these tariffs and it's not all a negotiating posture," Lipsky said. Tugboats assist a container ship as it prepares to dock at the Manila International Container Terminal at the Philippine capital. (Source: Associated Press) Trade gaps persist, more tariff hikes are possible ADVERTISEMENT Trump's team promised 90 deals in 90 days, but his negotiations so far have produced only two trade frameworks. His outline of a deal with Vietnam was clearly designed to box out China from routing its America-bound goods through that country, by doubling the 20% tariff charged on Vietnamese imports on anything traded transnationally. The quotas in the signed United Kingdom framework would spare that nation from the higher tariff rates being charged on steel, aluminium and autos, though British goods would generally face a 10% tariff. The United States ran a US$69.4 billion trade imbalance in goods with Japan in 2024 and a US$66 billion imbalance with South Korea, according to the Census Bureau. The trade deficits are the differences between what the US exports to a country relative to what it imports. According to Trump's letters, autos would be tariffed separately at the standard 25% worldwide, while steel and aluminium imports would be taxed on 50%. This is not the first time that Trump has tangled with Japan and South Korea on trade — and the new tariffs suggest his past deals made during his first term failed to deliver on his administration's own hype. In 2018, during Trump's first term, his administration celebrated a revamped trade agreement with South Korea as a major win. And in 2019, Trump signed a limited agreement with Japan on agricultural products and digital trade that at the time he called a "huge victory for America's farmers, ranchers and growers". ADVERTISEMENT Trump has also said on social media that countries aligned with the policy goals of BRICS, an organisation composed of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates, would face additional tariffs of 10%.
Otago Daily Times
2 hours ago
- Otago Daily Times
Trump ramps up trade war with higher tariffs
US President Donald Trump today began telling trade partners – from powerhouse suppliers like Japan and South Korea to minor players – that sharply higher US tariffs will start on August 1, marking a new phase in the trade war he launched earlier this year. The 14 countries sent letters so far, which included smaller US exporters like Serbia, Thailand and Tunisia, hinted at opportunities for additional negotiations while at the same time warning that any reprisal steps would be met with a like-for-like response. "If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge," Trump said in letters, released on his Truth Social platform, to Japan and South Korea. The higher tariffs, levied on US importers of foreign goods, take effect August 1, and notably will not combine with previously announced sector tariffs such as those on automobiles and steel and aluminum. That means, for instance, that Japanese vehicle tariffs will remain at 25%, rather than the existing 25% auto sector tariff climbing to 50% with the new reciprocal rate as has occurred with some of Trump's tariffs. The clock has been ticking for countries to conclude deals with the US after Trump unleashed a global trade war in April that has roiled financial markets and sent policymakers scrambling to protect their economies. Trading partners got another reprieve as Trump signed an executive order on Monday extending the Wednesday deadline for negotiations to August 1. Trump has kept much of the world guessing on the outcome of months of talks with countries hoping to avoid the hefty tariff hikes he has threatened. The rate for South Korea is the same as Trump initially announced, while the rate for Japan is 1 point higher than the one announced on April 2. A week later, he capped all of the so-called reciprocal tariffs at 10% until Wednesday. Only two agreements have so far been reached, with Britain and Vietnam. Wendy Cutler, vice president of the Asia Society Policy Institute, said it was unfortunate Trump was hiking tariffs on imports from two of the closest US allies, but there was still time for a breakthrough in negotiations. "While the news is disappointing, it does not mean the game is over," Cutler said. Trump said that the United States would impose 25% tariffs on goods from Tunisia, Malaysia and Kazakhstan; 30% on South Africa, Bosnia and Herzegovina; 32% on Indonesia; 35% on Serbia and Bangladesh; 36% on Cambodia and Thailand and 40% on Laos and Myanmar. South Korea said it planned to intensify US trade talks and considers Trump's plan for a 25% tariff from August 1 as effectively extending a grace period on implementing reciprocal tariffs. "We will step up negotiations during the remaining period to reach a mutually beneficial result to quickly resolve the uncertainties from tariffs," the country's Industry Ministry said. South African President Cyril Ramaphosa said the 30% US tariff rate was unjustified given that 77% of US goods enter South Africa with no tariffs. Ramaphosa's spokesperson said his government would continue to engage with the US There was no response from the Japanese embassy in Washington. US stocks fell in response, the latest market turmoil as Trump's trade moves have whipsawed financial markets and sent policymakers scrambling to protect their economies. US stocks were driven to near bear-market territory by his cascade of tariff announcements through the early spring but quickly rebounded to record highs after he put the stiffest levies on hold on April 9. The S&P 500 closed down about 0.8%, its biggest drop in three weeks. US-listed shares of Japanese automotive companies fell, with Toyota Motor closing down 4.0% and Honda Motor off by 3.9%. The dollar surged against both the Japanese yen and the South Korean won. "Tariff talk has sucked the wind out of the sails of the market," said Brian Jacobsen, chief economist at Annex Wealth Management. Most of the announced tariff rates have been rounded down, he added, and the letters come across as "take it or leave it" offers. US Treasury Secretary Scott Bessent said earlier on Monday he expected several trade announcements in the next 48 hours, adding that his inbox was full of countries' last-ditch offers. The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday. The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a "good exchange," a commission spokesperson said. The EU has been torn over whether to push for a quick and light trade deal or leverage its economic clout to negotiate a better outcome. It had already given up hopes for a comprehensive trade agreement before the July deadline. The president also threatened leaders of developing nations in the BRICS group, who are meeting in Brazil, with an additional 10% tariff if they adopt "anti-American" policies. The group includes Brazil, Russia, India and China among others.
RNZ News
3 hours ago
- RNZ News
Trump announces new tariffs of up to 40% on a growing number of countries
By Elisabeth Buchwald , CNN File photo. US President Donald Trump said he took particular issue with trade deficits the US runs with Japan and South Korea. Photo: AFP US President Donald Trump has cranked up the pressure on America's trading partners, firing off letters to heads of several countries, informing them of their new tariff rate. But at the same time, Trump took some of the edge off by signing an executive action to extend the date for all "reciprocal" tariffs, with the exception of China, to 1 August. Those "reciprocal" tariffs were expected to go into effect Wednesday. In some cases, the letters Trump sent specify new "reciprocal" tariff rates that are higher or lower compared to April levels. Japan's Prime Minister Shigeru Ishiba and South Korea's President Lee Jae-myung were the first recipients of Trump's letters. Both countries will face a 25 percent tariff come 1 August, Trump said in posts on Truth Social displaying the letters, potentially giving countries more time to negotiate deals. Around two hours later, he announced similar letters were sent to Malaysia, Kazakhstan, South Africa, Myanmar and Laos, informing their leaders of new tariff rates as high as 40 percent. Then later in the day, he posted seven new letters sent to leaders of Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia and Thailand, putting the running total at 14 letters delivered on Tuesday (NZT). In the letters, Trump said he takes particular issue with the trade deficits the United States runs with them, meaning America buys more goods from there compared to the amount that American businesses export to those countries. Trump also said the tariffs would be set in response to other policies that he deems are impeding American goods from being sold abroad. He encouraged country leaders to manufacture goods in the United States to avoid tariffs. This comes ahead of his initial 9 July deadline for countries to make deals or face the threat of higher tariffs. That date marks the end of the pause on "reciprocal" tariffs, which briefly went into place in April. Since then, impacted countries have faced a minimum 10 percent tariff. In all 14 letters, Trump threatened to raise tariffs even higher than the specified rates if a country retaliated against the United States with tariffs of their own. Trump said these rates would be "separate from all Sectoral Tariffs," meaning, for instance, the new tariff won't be stacked on top of the current auto tariff of 25 percent, the White House confirmed. That would apply to any future sector-specific tariffs, too, a White House official said. Despite the many trade qualms Trump has broadcast as having with the European Union, prompting him to threaten higher tariffs on several occasions, the trading bloc appears to have not received a letter from him. "We're not going to comment on letters that we haven't received," Olof Gill, a European Commission spokesperson, told reporters Monday afternoon. "My understanding is that we can now expect an extension of the current status quo until August 1 to give further time for the EU and the US to reach an agreement in principle on a mutually beneficial agreement that works for both sides," Simon Harris, Irish Minister for Foreign Affairs and Trade, said in a statement on Monday. Collectively, the US bought $465 billion (NZ$774 billion) worth of goods last year from the 14 countries that received letters on Monday, according to US Commerce Department figures. Japan and South Korea, America's sixth- and seventh-largest trading partners, accounted for 60 percent of that, shipping a total of $280 billion worth of goods to the US last year. The prospect of higher tariffs on goods could translate into higher prices for American consumers. Among the top goods America imports from South Korea and Japan, for example, are cars, auto parts, semiconductors, pharmaceuticals and machinery. Trump has placed or threatened to levy industry-specific tariffs on many of these goods. In April, Japan was set to face a 24 percent tariff, while South Korea was set to face a 25 percent tariff. While the other countries ship less to the US compared to Japan and South Korea, in many cases they are among the top foreign sources of goods. For instance, South Africa, which is set to face 30 percent tariffs, accounted for roughly half of the platinum the US imported from other countries last year and was the top foreign supplier of it. Malaysia, which is set to face a 24 percent tariff versus the 25 percent rate Trump announced in April, was the second-top source of semiconductors shipped to the US last year, with Americans purchasing $18 billion worth of them from there. Meanwhile, Bangladesh, Indonesia and Cambodia are top manufacturing hubs for apparel and accessories. Trump's letter to Cambodia's prime minister threatened a tariff rate of 36 percent, 13 percentage points lower than what had been in place in April, before it was paused. Stocks dropped lower midday after Trump announced the first batch of letters and continued to fall as Trump announced tariffs of varying rates from 25 percent to 40 percent on countries including Myanmar, Malaysia, Kazakhstan, Laos and South Africa. Despite Trump saying country-specific tariffs won't be stacked on top of sectorial ones, shares of auto companies that have a heavy manufacturing presence in Japan and South Korea declined sharply. US-listed shares in major Japanese automakers Toyota, Nissan and Honda dropped by 4 percent, 7.16 percent and 3.86 percent, respectively. Those declines, however, may reflect the increased likelihood of Trump potentially raising tariffs on cars from the two countries should they retaliate against the general 25 percent tariffs, were they to go into effect, by slapping higher tariffs on American goods. "These Tariffs may be modified, upward or downward, depending on our relationship with on our relationship with your Country. You will never be disappointed with The United States of America," Trump ended the letters before signing off. The Dow closed lower by 422 points, or 0.94 percent. The S&P 500 fell 0.79 percent and the tech-heavy Nasdaq Composite fell 0.92 percent. The three major indexes posted their worst day in about three weeks. -CNN
