Trump-led ‘One Big Beautiful Bill’ Passed
Trump’s First-Term Tax Cuts Made Permanent, Medicaid Trimmed
EVs and Solar Hit Hard, Fiscal Deficit Concerns Mount

The so-called “One Big Beautiful Bill Act” (OBBBA), encapsulating President Donald Trump’s second-term policy agenda, has cleared the final hurdle in the U.S. Congress. Having passed both chambers, the bill enshrines nearly all of Trump’s core pledges and is expected to be officially enacted following the president’s signature.

Tax Cuts and Spending Reductions Package Narrowly Passes House

On the 3rd (local time), the House of Representatives approved the Senate-revised version of OBBBA by a narrow vote of 218 in favor to 214 against. Two Republican representatives—Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania—joined all 212 Democrats in opposition. President Trump is scheduled to hold a signing ceremony at the White House at 5 p.m. on the 4th.

Passage through the House was far from smooth. Members of the House Freedom Caucus, representing fiscal conservatives within the GOP, voiced concerns over the bill’s significant increase to the national debt and the relatively modest cuts to Medicaid. Moderates, meanwhile, worried about the potential impact of Medicaid reductions on constituents. It took over 12 hours—from the night of the 1st into the early hours of the 2nd—for the House Rules Committee to craft the procedural “rule” needed to bring the bill to the floor, ultimately passing it narrowly by a 7–6 vote.

The floor vote on the rule was even more contentious. Known as the “rule vote,” it began late on the 2nd and saw all Democrats opposed, while five Republicans voted no and eight abstained. It wasn’t until 3:30 a.m. that the rule passed 219 to 213, following six hours of voting during which President Trump and House Speaker Mike Johnson lobbied dissenters. Debate ensued, further delayed by House Democratic Leader Hakeem Jeffries’ opposition speech. Speaking for 8 hours and 45 minutes, Jeffries broke the previous record of 8 hours and 32 minutes set in 2022 by former Republican Leader Kevin McCarthy.

Musk: Trump Tax Cuts Are Political Suicide

OBBBA centers on large-scale tax cuts, offset by reductions in welfare spending and increases in defense and immigration enforcement budgets. A key provision permanently extends the tax cuts implemented by Trump in 2017. The bill also introduces new tax deductions for tips and overtime pay, offering significant tax benefits to corporations and high-income earners. Meanwhile, programs for low-income Americans—including Medicaid and food assistance—face cuts totaling USD 930 billion. Numerous green energy incentives introduced under former President Joe Biden will also be repealed.

Support for renewable energy is set to be scaled back. While some of the most hardline provisions were omitted from the final version, the Trump administration has signaled its intention to further withdraw from renewable energy subsidies. The EV tax credit will expire on September 30. Additionally, the bill includes a USD 5 trillion increase to the national debt ceiling, raising projections that total U.S. debt could exceed USD 40 trillion. Market analysts warn this could lead to USD 4 trillion in additional debt over the next decade.

Tesla CEO Elon Musk publicly condemned the legislation as a “massive cost bomb,” clashing openly with President Trump. On his X (formerly Twitter) account, Musk wrote, “It will destroy millions of jobs in the U.S. and inflict enormous strategic damage on our nation. It’s utterly insane and destructive—a political suicide mission.”

Musk not only lashed out at those who supported the bill but also raised the prospect of launching a new political party. “Any member of Congress who campaigns on cutting government spending and then votes for the largest deficit increase in history should hang their head in shame,” he said, taking direct aim at the ruling GOP. He added, “If this deranged tax bill passes, the ‘America Party’ will be launched the very next day.”

Dollar in Worst Shape in 50 Years

Economists have voiced escalating concerns about a weakening dollar. The U.S. dollar saw its largest first-half decline in five decades. According to Bloomberg, the dollar index—which measures the greenback against six major currencies—closed at 96.89 on June 30, down more than 10.7% from the final trading day of the previous year (108.49). This marks the steepest first-half drop since 1973, when the U.S. ended the Bretton Woods system linking the dollar to gold, and the index fell 14.8%. The Wall Street Journal stated, “The dollar has had its worst start to a year since 1973.”

Before Trump’s inauguration, expectations were high that a trade war would drive investment into the U.S., strengthening the dollar. However, after assuming office, Trump’s inconsistent tariffs and massive tax cuts began eroding confidence in the U.S. dollar as the world’s most trusted safe-haven asset.

With the passage of a large-scale tax plan expected to generate substantial deficits over the next decade, the dollar’s weakness is only accelerating. As the U.S. debt burden grows, trust in the dollar declines. On the 3rd, Taiwan’s foreign exchange market saw a surge in demand for the Taiwan dollar, with its value rising 2.5% intraday as investors offloaded U.S. dollars. Francesco Pesole, FX strategist at ING, told the Financial Times, “The dollar has become a casualty of Trump’s erratic second-term policies.”

China Prepares to Install World’s Largest Hydropower Turbine in Tibet
Estimated to Reduce Carbon Emissions by 3.4 Million Tons
From Follower to Leader in Global Hydropower Development

China is set to install the world’s largest 500-megawatt (MW) impulse turbine at the Datang Zhala Hydropower Station in the Tibet Autonomous Region. The installation marks a major milestone in China’s push for technological leadership in renewable energy and infrastructure expansion in pursuit of its carbon neutrality goals.

Record-Breaking Turbine Completed for Datang Zhala Station

According to the South China Morning Post (SCMP) on July 4, the impulse turbine independently developed by China has the highest single-unit capacity in the world. Two turbines will be installed at the station. Each turbine, weighing 80 tons, measuring 6.23 meters in diameter and 1.34 meters in height, has completed four years of design and testing and departed the Harbin Electric Group’s facility in northeastern China on July 3.

The turbine is made of martensitic stainless steel, known for its durability, strength, and corrosion resistance. It features 21 water buckets and an outer diameter of 6.23 meters. Impulse hydropower works by directly shooting high-speed water jets onto the turbine to generate rotation, unlike traditional reservoir-based hydropower systems. This method harnesses the kinetic energy of water falling from great heights.

A Harbin Electric Group representative said, “The core parts of the turbine are made of martensitic stainless steel, which enhances durability and corrosion resistance, improving generation efficiency from 91% to 92.6%. This allows for an additional 190,000 kilowatt-hours (kWh) of electricity per day. It can replace 1.3 million tons of coal annually and reduce carbon dioxide emissions by 3.4 million tons.”

The Datang Zhala Hydropower Station is located on the Yuchu River, a tributary of the Nu River, which flows from southwestern China through Yunnan Province into eastern Myanmar before reaching the Andaman Sea. The vertical drop between the reservoir level and the turbine is 671 meters. China’s Science and Technology Daily described the turbine as the “heart” of the hydropower system, adding that the bucket-shaped wheel plays a vital role in converting the water flow’s kinetic energy into mechanical energy.

Energy Potential of the Tibetan Plateau

China has stepped up dam construction efforts since 2020 in line with its 2060 carbon neutrality pledge. According to the International Hydropower Association, China continued to lead the global hydropower sector last year, accounting for most of Asia’s new capacity additions while heavily investing in energy storage solutions.

The Tibetan Plateau’s elevation drop is a key enabler. The Yarlung Tsangpo River, which originates from glaciers and snowmelt in the western Tibetan Himalayas, stretches 2,840 kilometers, making it the third-longest river in China. It flows eastward into India’s Assam region as the Brahmaputra River, eventually joining the Meghna River and emptying into the Bay of Bengal via Bangladesh.

Notably, the Chinese section forms the Yarlung Tsangpo Grand Canyon, one of the deepest gorges in the world, with an average elevation difference of 5,000 meters and a maximum of 7,667 meters. This area is also among the rainiest in China. The combination of steep elevation and heavy rainfall makes it ideal for hydropower. At the time of initial planning in 2020, Yan Zhiyong, chairman of China’s state-owned Power Construction Corporation, noted, “The Yarlung Tsangpo is the most suitable river in the world for hydropower, with a 2,000-meter drop found over just a 50-kilometer stretch, representing a development potential of nearly 700 billion kWh.”

Tibet’s wind potential is also among the best globally. At an average altitude of over 3,000 meters, the region earns its nickname “the Roof of the World” for a reason. China’s National Climate Center stated in a report, “Tibet has numerous areas with strong and consistent winds, enabling potential wind power installations of up to 600 GW.” This equals the combined wind power output of the UK, Germany, and France.

China’s ‘East Data, West Computing’ Strategy Expands to Tibet

China’s emphasis on the Tibetan hydropower project is also seen as a strategic move to power energy-intensive AI computing facilities. Last month, China completed its first advanced AI computing center in Tibet. The “Yajiang No. 1” computing center in Shannan, Tibet Autonomous Region, held its inauguration on June 18 and has officially begun operations.

This project marks the first implementation of China’s national “East Data, West Computing” (东数西算) strategy in the western highlands. Launched in 2022, the strategy aims to shift data processing needs from the energy-hungry eastern provinces to resource-rich western regions. Until now, it had expanded only as far west as Ningxia Hui Autonomous Region and Gansu Province; Tibet is the newest frontier.

Jointly funded by Tibet Yajiang Computing Tech and the Shannan City Naidong District government, the project has deployed 256 high-performance servers, delivering 2,000 petaflops of computing power (1 petaflop equals 1 quadrillion operations per second). This system can handle up to 4 million hours of AI training per year for eastern regions, saving 320 million kWh of electricity and cutting carbon dioxide emissions by 280,000 tons. Additionally, waste heat recovery will help save 12,000 tons of coal annually, balancing technological development with the protection of the highland ecosystem.

Han Shuangshuang, CEO of Tibet Yajiang Computing Tech, told Science and Technology Daily, “Yajiang No. 1 serves as a large-scale eco-friendly AI computing hub on the Tibetan Plateau, playing a central role in achieving national strategies and promoting high-quality regional development. This project goes beyond basic infrastructure investment—it contributes to activating the digital economy, environmental conservation, workforce development, and a new model for digital cooperation between eastern and western China.” He added, “The center will offer customized digital solutions including AI training, smart healthcare, and high-altitude ecological monitoring, among other computing services.”

Ukraine: “North Korean Troops to Be Deployed to Russia in Large Numbers”
Report of 6,000 Troops Dispatched Last Month
Is North Korea Dreaming of Its Own ‘Miracle on the Han River’?

A projection by Ukrainian authorities suggests that North Korea will deploy an additional contingent of up to 30,000 troops to Russia. This comes less than a month after reports of a 6,000-strong North Korean deployment, raising fresh speculation about further troop dispatches. Experts say North Korea’s aggressive move evokes comparisons to South Korea’s past deployment of troops to the Vietnam War.

North Korean Troops to Be Deployed Again to Russia?

According to CNN on the 2nd (local time), Ukrainian intelligence authorities anticipate that North Korea will send an additional 25,000 to 30,000 troops to support Russia in the ongoing war with Ukraine. Analysis documents obtained by CNN from Ukrainian intelligence suggest that these additional North Korean forces are expected to arrive in Russia within a few months. Russia’s Ministry of Defense is reportedly already prepared to provide the necessary equipment, weapons, and ammunition to integrate the North Korean soldiers into its units. Ukrainian authorities believe these troops will participate in combat operations in occupied Ukrainian territories, boosting Russia’s combat capabilities and supporting large-scale offensive campaigns.

Authorities have also detected signs that Russia is refurbishing vehicles for troop transport. Indeed, satellite images obtained by CNN show a transport vessel of the same type used to ferry North Korean troops last year arriving at Dunay Naval Base near Vladivostok, Russia, on May 18. On June 4, a transport aircraft believed to be an Ilyushin IL-76 was spotted at Sunan International Airport in Pyongyang.

However, some experts argue that Ukraine’s estimate of 25,000 to 30,000 troops may be exaggerated. Jenny Town, a senior fellow at the nonpartisan think tank Stimson Center, which specializes in global peace and security issues, noted, “North Korea certainly has the capacity to provide that number of troops, but they’re unlikely to be elite forces.” She added, “Since Kim Jong-un has pledged full support, it all depends on what Russia has requested.” She continued, “A force of 10,000 to 20,000 seems more realistic,” and noted that “there are already rumors that Russian generals have been training troops in North Korea.”

Heavy Casualties Among North Korean Forces

This is not the first time news has emerged of additional North Korean troop deployments to Russia. Last month, Sergei Shoigu, Secretary of the Russian Security Council, visited North Korea and met with North Korean leader Kim Jong-un. He later told Russian media that North Korea had agreed to send 1,000 engineering troops to remove landmines in Russian territory and two brigades of military construction personnel totaling 5,000 to rebuild infrastructure damaged by Ukrainian attacks.

Shoigu stated at the time that “this deployment is part of North Korea’s fraternal support for Russia” and emphasized that constructive cooperation between the two countries would continue. North Korea’s state-run Korean Central News Agency also reported around the same time that “within the scope of the treaty between the two countries, the Republic has confirmed areas of cooperation and accepted related plans,” although the specifics of the agreement were not disclosed. Analysts suggest that Pyongyang’s decision not to inform its citizens of potentially casualty-inducing deployments aims to prevent domestic unrest.

The ongoing discussions between North Korea and Russia about troop reinforcements are largely driven by the severe troop losses North Korea has suffered in the prolonged conflict. In November of last year, North Korea sent approximately 11,000 troops to Russia. These soldiers were deployed to the western Kursk front—occupied by Ukrainian forces—but reportedly sustained significant casualties and were withdrawn to the rear last month. Western authorities estimate that 4,000 to 6,000 North Korean troops have been killed or gone missing. Ukrainian Army Commander-in-Chief Oleksandr Syrskyi also stated in an interview last month that North Korean forces had been reduced by nearly half within just three months of deployment.

Precedent of South Korea’s Overseas Deployment

Some observers draw parallels between North Korea’s deployment and South Korea’s dispatch of troops to Vietnam from 1964 to 1973. The Vietnam deployment was a strategic move by Seoul to keep U.S. troops stationed on the Korean Peninsula. At the time, the United States intended to redeploy two divisions of U.S. Forces Korea to the Vietnam War, and there was concern that these troops might not return. For South Korea—which lagged behind North Korea in military and economic terms—this posed a serious national security threat. To prevent the U.S. withdrawal, the Park Chung-hee administration offered to send South Korean troops to Vietnam instead.

Some experts believe this deployment laid the groundwork for South Korea’s “Miracle on the Han River,” its period of rapid economic growth. A diplomatic expert noted, “The inflow of U.S. dollar allowances for soldiers and construction fees earned by companies provided a springboard for Korea’s economic recovery,” and “this foreign capital helped the country build infrastructure such as the Gyeongbu Expressway.” The expert cautioned, however, “We must not forget that a total of 320,000 South Korean troops were dispatched, and a tragic 5,099 of them died.”

North Korea likely also expects similar economic gains. According to South Korea’s National Intelligence Service, North Korean soldiers deployed to Russia are reportedly paid USD 2,000 per month. In 2023, North Korea’s gross national income (GNI) per capita translated to approximately USD 96.20 per month—making this salary over 20 times higher. If 30,000 troops are deployed as forecasted by Ukrainian authorities, the influx of foreign currency could significantly benefit North Korea’s economy. This is why many expect Pyongyang to continue deploying troops, mirroring South Korea’s Vietnam War precedent.

Microsoft Tightens Its Belt, Cuts 9,000 Jobs
"Reducing Non-AI Workforce to Increase Investment"
US Tech Companies Lay Off 63,000 This Year Alone

Microsoft (MS), which has been investing heavily in artificial intelligence (AI), has launched its third large-scale restructuring in recent months. The layoffs affect about 4% of its global workforce, or 9,000 employees. This comes after the company cut about 6,000 jobs in May, bringing the total number of layoffs in just two months to 15,000. The move is intended to increase efficiency through AI and redirect saved labor costs toward building AI infrastructure, reflecting the broader trend across the US tech industry of AI increasingly replacing human jobs.

MS Accelerates AI Transition with More Layoffs

On July 2 (local time), Microsoft announced via a spokesperson's statement that it would cut about 9,000 jobs across various divisions worldwide. The figure accounts for about 4% of Microsoft’s total workforce of 228,000 as of last year and marks the largest round of layoffs since 10,000 jobs were cut in 2023. The company stated, “We are restructuring our organization to succeed in a rapidly changing market environment,” adding, “We are reducing layers of management and leveraging new technologies to enhance employee productivity.” The statement continued, “We will continue to make the necessary organizational changes to ensure our company and teams succeed in this dynamic market.”

The layoffs are viewed as an extension of Microsoft’s strategy to enhance work efficiency through AI. CEO Satya Nadella declared at the Microsoft Build 2025 annual developer conference held in Seattle on May 19 that “the era of the Open Agentic Web has arrived,” indicating that AI agents will be integrated across individuals, organizations, and industries.

The Xbox division is reportedly among those affected. Xbox Gaming CEO Phil Spencer stated in an email to employees that “to drive sustainable success in our gaming business and focus on strategic growth areas, we will end or scale down specific operations,” adding that “we will follow Microsoft’s lead in eliminating middle management roles to boost agility and efficiency.”

As a result of Microsoft’s decision, major Xbox studio projects have been canceled. The highly anticipated title “Perfect Dark” has been scrapped, and the studio behind it, The Initiative, has been shut down. Additionally, development of Rare’s 2019-announced game “Everwild” has been officially halted. Turn 10 Studios, the developer behind “Forza Motorsport,” has also been hit, cutting over 70 staff members.

“Coding Is What AI Does Best”—Developers Are Microsoft’s Top Layoff Target

This marks Microsoft’s third major round of layoffs this year alone. In January, the company laid off about 1% of its workforce, targeting underperformers, followed by a reduction of more than 6,000 employees in May. Total layoffs since January now exceed 15,000, approaching the company’s largest restructuring in 2014, which cut about 18,000 jobs.

Developers have been the biggest casualties in Microsoft’s layoffs. With AI-powered coding and analysis tools becoming widespread, much of the traditional software developer role has been automated. In April, Nadella remarked at Meta’s AI developer conference LlamaCon that “20–30% of the code within the company is already generated by AI,” suggesting that AI is increasingly capable of replacing human tasks.

Indeed, Microsoft’s new coding AI agent, GitHub Copilot, can generate code with just a few developer instructions. Earlier versions of Microsoft’s coding AI tools generated code based on developers’ ongoing tasks, but with the release of GitHub Copilot, developers have shifted from writing code themselves to directing AI. Product management and technical program management roles have also been significantly affected, accounting for about 600 people, or 30% of total layoffs. By contrast, departments that deal directly with customers have seen less impact.

Big Tech Faces Layoff 'Rush'

The layoff wave is not limited to Microsoft but is spreading across the tech industry. Global Big Tech firms are conducting mass layoffs while making massive investments in AI, leading to budget restructuring and cost realignment. Amazon recently cut around 100 jobs in its Devices and Services division. According to Reuters, the cuts include units working on Kindle, Echo Speaker, Alexa voice assistant, and the Zoox autonomous vehicle project. Since early 2022, Amazon has laid off around 27,000 employees.

Intel announced in April plans to cut up to 22,000 employees, or about 20% of its workforce. The company also laid off 15,000 employees in August last year, around 15% of its total staff at the time. Meta laid off about 3,600 employees (5% of its workforce) in February, and in April cut several hundred jobs from its Reality Labs division. Salesforce also announced in early 2025 plans to lay off more than 1,000 employees while focusing on AI-based sales roles. Workday announced restructuring in February, emphasizing hiring strategic AI talent.

Google, after cutting 12,000 jobs (6% of its workforce) in 2023—its largest layoff to date—and reducing 10% of its managerial staff last December, has continued to conduct monthly layoffs by division. In February, about 100 jobs were cut in the cloud division; in April, several hundred were laid off from the platforms and devices division (Android, Chrome, Pixel, etc.); and in May, around 200 were cut from the global business division (sales and partnerships). Last month, voluntary retirement programs were introduced in core departments including search, ads, research, engineering, and knowledge & information (K&I), which alone houses around 20,000 employees.

According to the layoff tracking site Layoffs.fyi, 150 US IT companies have implemented layoffs in the first half of this year, cutting a total of 63,823 jobs. This accounts for nearly 1% of the entire US IT workforce and is equivalent to 24% of Samsung Electronics’ global workforce of 250,000. Last year, 152,922 jobs were lost across 549 tech companies worldwide.

Trump: “No Consideration for Tariff Suspension or Extension”
Repeatedly Targets Japan: “May Impose 30–35% Tariffs”
Pushes for Deal as Tariff Suspension Nears Expiry

U.S. President Donald Trump expressed a negative stance on the possibility of reaching a trade agreement with Japan, warning that he could raise reciprocal tariff rates up to 35%. With the suspension period for reciprocal tariffs set to expire next week, he has shown growing dissatisfaction with stalled negotiations and has escalated pressure on Japan for the third consecutive day. Japan, which had organized a negotiation team early on, has yet to find common ground in the ongoing tariff discussions.

Trump Hints at Raising Japan’s Reciprocal Tariff Rate from 24% to 35%

On the 1st (local time), aboard Air Force One returning from a visit to Florida, President Trump commented on the upcoming expiration of the reciprocal tariff suspension on July 8, stating, “I’m not thinking about a pause,” and added, “I’ll be writing one-page or one-and-a-half-page letters to many countries (regarding tariff rates).”

The Trump administration has used the expiration date of the tariff suspension (July 8) as a deadline for conducting trade negotiations with various countries over tariff rates, trade balances, and non-tariff barriers. It has warned that countries showing a lack of engagement may receive unilateral notices outlining the imposed tariff rates.

Regarding Japan in particular, President Trump dismissed the possibility of reaching a deal, saying he is “skeptical about the chances.” While stating, “I love Japan, and the late Prime Minister Shinzo Abe was one of my closest friends. I also like their new prime minister,” he criticized Japan for “being very spoiled after exploiting us for 30–40 years along with others.” He emphasized, “We are running a serious trade deficit with Japan, and as a result, we will impose tariffs of 30–35% or any rate we decide.” This figure is significantly higher than the 24% reciprocal tariff considered for Japan in April.

“Why Won’t They Import Our Rice?” Trump Threatens Tariff Retaliation

On June 30, President Trump also raised the issue of Japan not opening its rice market and threatened to send a unilateral tariff letter. On his social media platform Truth Social, he wrote, “I respect Japan very much, but even though they are experiencing a severe rice shortage, they refuse to import our rice,” adding, “I will send them a letter.” Despite multiple rounds of negotiations, he criticized Japan’s insufficient imports of U.S. rice and threatened to impose arbitrary tariffs.

Although Japan’s rice prices have nearly doubled compared to last year, the country continues to minimize imports to protect its domestic market. The ruling Liberal Democratic Party's traditional support base includes farmers, and Japan has resisted opening its rice market under the pretext of “food security.” According to Reuters, Japanese Economic Revitalization Minister Ryosei Akazawa said on July 1, in response to Trump’s tariff threats, “We will not engage in negotiations that sacrifice agriculture.”

Japan’s Auto Industry Faces $23 Billion Loss if Tariff Talks Fail

Furthermore, during a Fox News interview on June 30, President Trump expressed dissatisfaction with Japan’s refusal to import U.S. automobiles and stated, “Hear me, Japan. You will be paying a 25% tariff on Japanese cars exported to the U.S.” This move is seen as an attempt to use Japan’s “non-tariff barriers” as justification to demand the elimination of policies and practices that disadvantage U.S. goods. Analysts interpret the pressure on rice imports as a strategic move to extract greater concessions in other sectors such as automobiles.

These comments came less than a week before the tariff suspension period ends. As trade talks between the U.S. and Japan remain stalled, Trump has increased pressure by threatening to directly notify tariff rates. Despite seven rounds of ministerial-level negotiations over several months, the two countries have failed to resolve their differences over tariff levels.

Currently, Japan is requesting exemption from Trump’s 25% automobile tariff, claiming it would cripple a core industry. Toyota, for instance, is projected to post a net profit of approximately $23.4 billion in the fiscal year ending March 2026, down 34.9% from the previous year. The decline is attributed to the high 25% tariff. Trump’s auto tariff policy is a central pledge from his re-election campaign, aimed at “reviving U.S. manufacturing” and “eliminating trade imbalances,” and has been aggressively implemented since he took office. The steep increase from the existing 2.5% to 25% specifically targets major auto-exporting countries like South Korea, Japan, and Germany.

This has dealt a heavy blow to Japan’s auto industry. Despite expanding production facilities in the U.S., Japanese automakers still export a substantial volume of vehicles manufactured in Japan to the U.S. Toyota, for example, produces many high-end and hybrid vehicles—including the Lexus line—domestically for export to the American market.

The Japanese government has repeatedly urged the U.S. to grant a tariff exemption. However, President Trump has been dismissive of such requests, arguing that while Japan barely imports U.S. cars, the U.S. imports millions of Japanese vehicles. Trade and foreign policy experts believe that unless Japan presents a new negotiation card that the Trump administration finds favorable by July 9, the U.S. is likely to unilaterally impose tariffs. As a result, the Japanese government is expected to begin broad-based coordination, potentially using key sensitive sectors like agriculture as leverage.

Musk: “The tax bill is insane — I’ll make sure every supporting lawmaker loses”
Tax bill passes U.S. Senate 51–50; House vote set for July 2
Mounting concerns over Trump’s tax bill: “Igniting America’s debt bomb”

Tesla CEO Elon Musk harshly criticized former President Donald Trump's tax cut proposal in a series of posts on X, even going so far as to make veiled threats toward lawmakers involved. Musk, who has consistently opposed the bill, appears to have taken a decisive stand. The bill in question encompasses a core segment of Trump’s flagship policies, which Musk argues run counter to the principles of reducing government spending and streamlining fiscal efficiency. His opposition has been a flashpoint in his ongoing conflict with Trump.

Musk Hints at Campaign Against GOP Lawmakers Behind the Bill

On June 30 (local time), Musk posted a string of messages on X (formerly Twitter), once again targeting Trump’s large-scale tax cut bill. “Every lawmaker who voted for this bill should be ashamed,” Musk wrote. “They will lose in the next primary. Even if it’s the last thing I do, I will make it happen.” He also shared an edited movie poster titled “Liar” featuring Pinocchio sitting in a chair, warning that those who supported the bill would find their faces on such posters during the next primaries.

A few hours later, Musk followed up with another post stating, “If this insane bill passes, the ‘America Party’ will be launched the very next day.” He added that the U.S. needs an alternative to the Democratic and Republican duopoly to allow people’s real voices to be heard. Musk had previously floated the idea of founding a party to represent the “moderate 80%” of Americans but had never mentioned a specific timeline until now.

Citing a poll conducted on X, where 80% of respondents agreed that a new party is needed, Musk insisted that a party representing the centrist majority is essential. He ridiculed the current two-party system, saying, “We are effectively living in a one-party state called the ‘Porky Pig Party.’” Musk further warned that the bill would destroy future-oriented industries by subsidizing obsolete sectors, causing the loss of millions of jobs and inflicting immense strategic damage to the country. He specifically criticized provisions that increase taxes on wind and solar projects, arguing that all yet-to-be-constructed renewable energy projects would be subject to heavy taxation. This clause directly affects Musk’s electric vehicle business, including Tesla.

U.S. media reported that Musk invested more than $250 million in support of Trump during last year’s presidential election and has the financial clout to pour significant sums into primaries nationwide via his political action committee (PAC). If his threats materialize, they could create significant turbulence within the Republican Party.

Senate Passes Tax Bill With Vice President’s Tie-Breaking Vote

The large-scale tax cut bill publicly criticized by Musk passed the U.S. Senate on July 1. According to Reuters and other outlets, the bill dubbed the “One Big Beautiful Bill Act” passed with 51 votes in favor and 50 against. Three Republicans defected, leading to a 50–50 tie, which was broken by Vice President J.D. Vance in his capacity as Senate President. Despite holding 53 Senate seats, the GOP faced defections from Senators Thom Tillis (North Carolina), Rand Paul (Kentucky), and Susan Collins (Maine), who had previously signaled their opposition. All 47 Democrats and independents voted against it.

The bill primarily extends major tax cut measures introduced during Trump’s first term in 2017, including reductions in personal income and corporate tax rates, expanded standard deductions, and child tax credits. It also includes provisions like tax exemptions on tips and overtime, and the establishment of $1,000 savings accounts for newborns. On the spending side, the bill expands border security funding to curb illegal immigration. Tax credits for clean energy and electric vehicle purchases introduced under the Biden administration would be repealed or sunset. The bill also raises the federal debt ceiling by $5 trillion to avoid a potential default in August.

After narrowly passing the House last month, the bill underwent numerous revisions in the Senate. On June 28, Democrats demanded a full reading of the 940-page text, triggering lengthy deliberations. A subsequent “vote-a-rama” involved votes on 45 amendments over a 27-hour marathon session. The GOP leadership worked hard to prevent internal defections, with Trump himself applying pressure and threatening primary losses for opponents. The bill, now slightly revised, has been returned to the House for a final vote scheduled for July 2. Republican leaders plan to complete the legislative process, including Trump’s signature, before the July 4 Independence Day holiday.

Trump’s Tax Cuts Could Be Economic Time Bomb

Despite Senate passage, the bill's success in the House remains uncertain due to mounting concerns over its fiscal consequences. The Congressional Budget Office (CBO) projected on June 28 that the bill would add $3.3 trillion to federal debt over the next 10 years. In a report earlier that month, the CBO estimated the bill would increase the deficit by over $2.4 trillion—before factoring in the Senate’s more fiscally expansive revisions, which would widen the deficit by an additional $900 billion. The U.S. national debt currently stands at $36.2 trillion, and the bill is expected to further exacerbate the already dire fiscal situation. The New York Times estimated that once interest costs are included, total debt increase could approach $4 trillion.

Markets are growing anxious that U.S. deficits are reaching a tipping point, potentially undermining trust in U.S. Treasuries, which have long been a pillar of global financial stability. Lazard CEO Peter Orszag warned, “U.S. Treasuries have always been considered the most reliable assets globally, which is why deficit concerns were often dismissed. But this year is different. The federal government is projected to spend more on interest payments than on defense, Medicaid, or Medicare. In other words, interest costs alone will exceed major essential spending categories.”

Orszag also cautioned that while foreign investors have continued to buy Treasuries out of a lack of alternatives, that could soon change. “Shifts in diplomatic relations with major holders of U.S. debt, or increased bond issuance by countries like Germany for defense and infrastructure, could reduce demand for Treasuries,” he said. “Moody’s recent downgrade of U.S. debt is aligned with these structural concerns.”

Indeed, major institutional investors have recently begun divesting from U.S. Treasuries in favor of debt from countries with AAA ratings. According to Bloomberg, insurance firms in Taiwan and Japan, along with pension funds in Australia—formerly heavy buyers of U.S. debt—are now turning to the sovereign bonds of Australia and Singapore. Countries that currently retain top-tier credit ratings from the world’s three major rating agencies include Australia, Singapore, Denmark, Germany, Luxembourg, the Netherlands, Norway, and Switzerland. For large investors seeking to avoid the risks tied to U.S. debt, these alternatives offer compelling options.