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Trump tax bill stalled by Republican rebellion in Congress

Update Trump tax bill stalled by Republican rebellion in Congress
The bill would extend and make permanent various individual and business tax breaks from Trump’s first term. (AP)
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Updated 03 July 2025

Trump tax bill stalled by Republican rebellion in Congress

Trump tax bill stalled by Republican rebellion in Congress

Washington: Donald Trump’s signature tax and spending bill was in limbo early Thursday as Republican leaders in the US Congress scrambled to win over a group of rebels threatening to torpedo the centerpiece of the president’s domestic agenda.

Trump is seeking final approval in the House of Representatives for his Senate-passed “One Big Beautiful Bill” — but faces opposition on all sides of his fractious party over provisions set to balloon the national debt while launching a historic assault on the social safety net.

As midnight (0400 GMT) struck, House Speaker Mike Johnson was still holding open a key procedural vote — the bill’s last hurdle before it can advance to be considered for final approval — more than two hours after it was first called.

With no clear sign of the stalemate breaking, his lieutenants huddled in tense meetings behind the scenes with the rebels who had either voted no or had yet to come to the House floor.

“We’re going to get there tonight. We’re working on it and very, very positive about our progress,” Johnson told reporters at the Capitol, according to Politico.

Originally approved by the House in May, Trump’s sprawling legislation squeezed through the Senate on Tuesday by a solitary vote but had to return to the lower chamber Wednesday for a rubber stamp of the Senate’s revisions.

The package honors many of Trump’s campaign promises, boosting military spending, funding a mass migrant deportation drive and committing $4.5 trillion to extend his first-term tax relief.

But it is expected to pile an extra $3.4 trillion over a decade onto the country’s fast-growing deficits, while forcing through the largest cuts to the Medicaid health insurance program since its 1960s launch.

While moderates in the House are anxious that the cuts will damage their prospects of reelection, fiscal hawks are chafing over savings that they say fall short of what they were promised by hundreds of billions of dollars.

Johnson has to negotiate incredibly tight margins, and can likely only lose three lawmakers among more than two dozen who have declared themselves open to rejecting Trump’s bill.

Republican leaders had been hoping to spend just a few hours on Wednesday afternoon green-lighting the package, although they have a cushion of two days before Trump’s self-imposed July 4 deadline.

The 887-page text only passed in the Senate after a flurry of tweaks that pulled the House-passed text further to the right.

Republicans lost one conservative who was angry about adding to the country’s $37 trillion debt burden and two moderates worried about almost $1 trillion in health care cuts.

Some estimates put the total number of recipients set to lose their health insurance at 17 million, while scores of rural hospitals are expected to close.

Legislation in the House has to go through multiple “test” votes before it can come up for final approval, and a majority must wave it through at each of these stages.

There were warning signs early in the day as the package stumbled at one of the first steps, with a straightforward vote that ought to have taken minutes remaining open for seven hours and 31 minutes — making it the longest House vote in history.

Johnson had made clear that he was banking on Trump leaning on waverers, as he has in the past to turn around contentious House votes that were headed for failure.

The president has spent weeks cajoling Republicans torn between angering welfare recipients at home and incurring his wrath.

Trump pressured House Republicans to get the bill over the line in a private White House meeting with several holdouts on Wednesday.

“What are the Republicans waiting for?,” he posted on his Truth Social platform just after midnight.

“What are you trying to prove??? MAGA IS NOT HAPPY, AND IT’S COSTING YOU VOTES!!!“

House Democrats have signaled that they plan to campaign on the bill to flip the chamber in the 2026 midterm elections, pointing to analyzes showing that it represents a historic redistribution of wealth from the poorest Americans to the richest.

“Shame on Senate Republicans for passing this disgusting abomination,” House Minority Leader Hakeem Jeffries told reporters.


Ryanair cancels 170 flights due to French air traffic controllers strikes

Ryanair cancels 170 flights due to French air traffic controllers strikes
Updated 34 sec ago

Ryanair cancels 170 flights due to French air traffic controllers strikes

Ryanair cancels 170 flights due to French air traffic controllers strikes
Ryanair said it was forced to cancel 170 flights affecting over 30,000 passengers due to a national strike by air traffic controllers in France, planned on Thursday and Friday.
“In addition to flights to/from France being canceled, this strike will also affect all French overflights,” the Irish airline said in a statement.

Thailand set for another acting PM after cabinet reshuffle

Thailand set for another acting PM after cabinet reshuffle
Updated 43 min 25 sec ago

Thailand set for another acting PM after cabinet reshuffle

Thailand set for another acting PM after cabinet reshuffle
  • Power passed to transport minister and deputy prime minister Suriya Jungrungreangkit who took office for only one full day
  • The revolving door of leadership comes as the kingdom is battling to revive a spluttering economy and secure a US trade deal averting President Donald Trump’s looming threat of a 36 percent tariff

Bangkok: Thailand’s king is scheduled Thursday to swear in a new cabinet in a reshuffle that will see a third person in a week take on the role as the country’s prime minister.

The Southeast Asian nation’s top office was plunged into turmoil on Tuesday when the Constitutional Court suspended Prime Minister Paetongtarn Shinawatra pending an ethics probe which could take months.

Power passed to transport minister and deputy prime minister Suriya Jungrungreangkit who took office for only one full day, as the bombshell was dropped in an awkward interim ahead of the reshuffle.

When former defense minister Phumtham Wechayachai is sworn into his new position as interior minister he will also take on a deputy prime minister role outranking Suriya’s — thus becoming the acting premier.

Before Paetongtarn was ousted she assigned herself the role of culture minister in the new cabinet, meaning she is set to keep a perch in the upper echelons of power.

She arrived at the Government House on Thursday morning for a group portrait before heading to the Grand Palace to meet King Maha Vajiralongkorn for the closed-door oath-taking.

The newly-appointed cabinet is set to hold its first meeting Thursday afternoon, with a royal statement expected in the evening.

The revolving door of leadership comes as the kingdom is battling to revive a spluttering economy and secure a US trade deal averting President Donald Trump’s looming threat of a 36 percent tariff.

Phumtham is considered a loyal lieutenant to the suspended Paetongtarn and her father Thaksin Shinawatra, the powerful patriarch of a dynasty which has dominated Thai 21st-century politics.

Thaksin-linked parties have been jousting with the pro-military, pro-conservative establishment since the early 2000s, but analysts say the family’s political brand has now entered decline.

The 71-year-old Phumtham earned the nickname “Big Comrade” for his association with a left-wing youth movement of the 1970s, but transitioned to politics through a role in Thaksin’s telecoms empire.

In previous cabinets he held the defense and commerce portfolios, and spent a spell as acting prime minister after a crisis engulfed the top office last year.

Paetongtarn has been hobbled over a longstanding territorial dispute between Thailand and Cambodia, which boiled over into cross-border clashes in May, killing one Cambodian soldier.

When she made a diplomatic call to Cambodian ex-leader Hun Sen, she called him “uncle” and referred to a Thai military commander as her “opponent,” according to a leaked recording causing widespread backlash.

A conservative party abandoned her ruling coalition — sparking the cabinet reshuffle — accusing her of kowtowing to Cambodia and undermining the military.

The Constitutional Court said there was “sufficient cause to suspect” Paetongtarn breached ministerial ethics in the diplomatic spat.
bur-sjc/jts/mtp


South Korea’s leader says trade deal with US remains unclear ahead of Trump’s deadline

South Korea’s leader says trade deal with US remains unclear ahead of Trump’s deadline
Updated 54 min 9 sec ago

South Korea’s leader says trade deal with US remains unclear ahead of Trump’s deadline

South Korea’s leader says trade deal with US remains unclear ahead of Trump’s deadline
  • Lee said the tariff negotiations with the US have been “clearly not easy”
  • Trump’s 90-day pause in global reciprocal tariffs is set to expire on July 9, potentially exposing South Korean products to 25 percent tax rates

SEOUL, South Korea: South Korean President Lee Jae Myung said that it remained unclear whether Seoul and Washington could conclude their tariff negotiations by the deadline set by President Donald Trump for next week, noting Thursday that both nations were still working to clarify their positions and identify areas of agreement.

Speaking at his first news conference since taking office last month, Lee also reiterated his intentions to improve badly frayed ties with North Korea, though he acknowledged that mutual distrust between the Koreas is too deep to heal anytime soon.

Trump’s tariff hikes and other “America First” policies are major challenges for Lee’s month-old government, as are North Korea’s expanding nuclear program and domestic economic woes. Lee, a liberal, came to power after winning a snap presidential election caused by the ouster of conservative President Yoon Suk Yeol over his ill-fated imposition of martial law in December.

Lee said the tariff negotiations with the US have been “clearly not easy” and stressed that the countries must reach mutually beneficial outcomes.

“It’s difficult to say with certainty whether we will be able to reach a conclusion by July 8. We are now doing our best,” Lee said. ”What we need is a truly reciprocal outcome that benefits both sides and works for everyone, but so far, both sides are still trying to define exactly what they want.”

Trump’s 90-day pause in global reciprocal tariffs is set to expire on July 9, potentially exposing South Korean products to 25 percent tax rates.

Washington has separately been seeking higher duties on specific products such as automobiles and semiconductors, which are key exports for South Korea’s trade-dependent economy. There are growing concerns in Seoul that Trump may also demand a broader deal requiring South Korea to pay significantly more for the 28,000 US troops stationed on the peninsula to deter North Korean threats.

Lee has consistently urged patience on tariffs, arguing that rushing to secure an early deal would not serve the national interest. His trade minister, Yeo Han-koo, was reportedly arranging a visit to Washington for possible meetings with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.

On North Korea, Lee said he would seek to restore long-dormant talks with North Korea, whose expanding military cooperation with Russia pose major security concerns to their neighbors.

“I think we should improve relations with North Korea based on a reliable coordination and consultation between South Korea and the US,” Lee said. “But I expect that won’t be easy as mutual antagonism and distrust are too serious.”

Lee previously faced criticism that he was tilting toward North Korea and China and away from the US and Japan. But since the election, Lee has repeatedly vowed pragmatic diplomacy, saying he would bolster the alliance with the US while also seeking to repair ties with North Korea, China and Russia. Some critics say it’s too difficult to satisfy all parties.

Lee’s government has made proactive efforts to build trust with North Korea, halting frontline anti-Pyongyang propaganda broadcasts and taking steps to ban activists from flying balloons carrying propaganda leaflets across the border.

North Korea hasn’t publicly responded to the conciliatory gestures by Trump and Lee, but officials said North Korean propaganda broadcasts have since been unheard in South Korean border towns.

Lee said he’s been talking with his presidential security and intelligence officials about how to revive talks with North Korea but didn’t elaborate.

Trump has also expressed intent to resume diplomacy with North Korean leader Kim Jong Un. Lee has said he would support Trump’s push.

North Korea has refused talks with the US and South Korea since earlier Trump-Kim nuclear talks collapsed in 2019. North Korea is now pursuing relations with Russia, supplying troops and weapons to support its war against Ukraine in return for economic and military assistance.


Ukrainian drone attack kills one in Russia’s Lipetsk, regional governor says

Ukrainian drone attack kills one in Russia’s Lipetsk, regional governor says
Updated 03 July 2025

Ukrainian drone attack kills one in Russia’s Lipetsk, regional governor says

Ukrainian drone attack kills one in Russia’s Lipetsk, regional governor says
  • The debris fell on a residential building in the district surrounding the regional capital

A woman in her 70s was killed, and two other people injured, by falling debris from a destroyed Ukrainian drone in Russia’s southwestern region of Lipetsk, regional governor Igor Artamonov said early on Thursday.

The debris fell on a residential building in the district surrounding the regional capital, killing the woman and injuring two more, Artamonov said on the Telegram messaging app.

“Signals about falling debris are coming from various areas,” Artamonov added. “Rescue services and emergency agencies are working in an enhanced mode.”

The Russian defense ministry said that it destroyed 10 Ukrainian drones overnight over the Lipetsk region and 69 in total over Russian territory and the Crimean Peninsula. The ministry reports only how many drones its forces destroy, not how many Ukraine launches.

Artamonov said in another post that an apartment building under construction in the city of Yelets in the Lipetsk region was damaged as result of an attack and that a small fire broke out at a nearby parking lot.

The full damage were not immediately known. There was no immediate comment from Ukraine about the attack.

Both sides deny targeting civilians in their strikes during the war that Russia launched against Ukraine more than three years ago. But thousands of civilians have died in the conflict, the vast majority of them Ukrainian.

Ukraine has launched multiple air strikes into Lipetsk, a strategically important region with an air base that is the chief training center for the Russian Aerospace Forces.

Kyiv has been attacking Russian air bases to reduce Moscow’s ability to use its warplanes to strike targets in Ukraine and hammer front lines with guided bombs and missiles. In August, the Ukrainian military said it had hit the Lipetsk airfield, damaging stockpiles of guided bombs and causing a series of explosions.


China, EU should not ‘seek confrontation,’ says FM Wang Yi

China, EU should not ‘seek confrontation,’ says FM Wang Yi
Updated 03 July 2025

China, EU should not ‘seek confrontation,’ says FM Wang Yi

China, EU should not ‘seek confrontation,’ says FM Wang Yi
  • Europe is “facing various challenges,” Wang said, but stressed that none were caused by China “in the past, present or future”

BRUSSELS: China’s top diplomat warned his EU counterpart against “confrontation,” his foreign ministry said Thursday, after she urged Beijing to stop undermining Europe’s security.
Meeting Kaja Kallas in Brussels on Wednesday, Wang Yi said China and the European Union “should not be regarded as opponents because of differences, nor should they seek confrontation because of disagreements,” according to a Chinese foreign ministry statement.
Europe is “facing various challenges,” Wang said, but stressed that none were caused by China “in the past, present or future.”
Ahead of their meeting, Kallas, the EU’s foreign affairs chief, said China was “not our adversary, but on security our relationship is under increasing strain.”
She said Chinese firms were “Moscow’s lifeline to sustain its war against Ukraine” and accused Beijing of carrying out cyberattacks, democratic interference and unfair trade practices that “harm European security and jobs.”
China has portrayed itself as a neutral party in Russia’s more than three-year war with Ukraine. But Western governments say Beijing has given Moscow crucial economic and diplomatic support.
“Enabling war in Europe while seeking closer ties with Europe is a contradiction Beijing must address,” Kallas added on Wednesday.
Wang, meanwhile, sought to cast Beijing as a steady counterweight against superpower rival Washington, which has threatened to slap sweeping tariffs on imports from European nations.
“The path taken by the United States should not be used as a reflection of China,” he said. “China is not the United States.”
Beijing’s foreign ministry also said the two sides had discussed Ukraine, the conflict between Israel and the Palestinians, and the Iran nuclear issue.
Beijing and Brussels should treat one another with “respect,” Wang said, adding that Europe should pursue a more “active and pragmatic” China policy.
The Chinese diplomat also met European Commission chief Ursula von der Leyen and his Belgian counterpart Maxime Prevot on Wednesday.
China and the EU should “uphold multilateralism and free trade... and work together to address global challenges such as climate change,” Wang told von der Leyen.
Wang will next travel to Germany, where he will hold talks with Foreign Minister Johann Wadephul on diplomacy and security.
And in France, Wang will meet minister for Europe and foreign affairs Jean-Noel Barrot, who visited China in March.
The visits come about three weeks ahead of a summit between Chinese President Xi Jinping and the EU’s top officials in Beijing.