### CBO Revises Cost Estimate of Trump’s Tax Bill as Opposition Mounts

The nonpartisan Congressional Budget Office (CBO) has issued a revised assessment of the tax and spending cut bill backed by former President Donald Trump, suggesting it will add $2.4 trillion to the federal government's $36.2 trillion debt. This new estimate, issued just a day after Elon Musk criticized the bill as a "disgusting abomination," is expected to bolster the arguments of Republican deficit hawks who oppose the measure.

Initially, the CBO had estimated that the bill, which narrowly passed the House of Representatives on May 22 without any Democratic support, would increase Washington’s debt by about $3.8 trillion over the next decade. The bill seeks to extend the 2017 tax cuts introduced by the Trump administration while implementing substantial spending reductions, particularly targeting Medicaid, to offset the tax cuts.

The latest CBO assessment considers last-minute amendments made to the bill by Republican leaders in their efforts to secure its passage. One notable projection from the CBO is the expected increase of 10.9 million uninsured individuals as a result of the bill, which includes about 1.4 million people residing in the country without legal status and currently covered under state-funded programs.

Meanwhile, international trade tensions continue to escalate. Mexican President Claudia Sheinbaum has announced that Mexico will implement measures next week if no agreement is reached with the United States regarding the newly proposed steel and aluminum tariffs. Sheinbaum condemned the US’s move to hike tariffs as an "unfair measure" but clarified that Mexico's reaction will not follow a tit-for-tat approach.

Additionally, the United States and the United Arab Emirates (UAE) have initiated discussions on a possible bilateral trade agreement to potentially ease tariffs on the Gulf state’s steel and aluminum sectors. Sources close to the matter revealed that these discussions began during former President Trump’s recent visit to Abu Dhabi. The UAE, which has been significantly impacted by Trump's imposition of a 25% tariff on its steel and aluminum exports—now proposed to double to 50%—is keen on striking a deal quickly. The UAE was the second-largest exporter of these metals to the US in 2024, representing 8% of US consumption.

During Trump's visit, UAE officials underscored their capability to swiftly negotiate trade deals, referencing comprehensive agreements made with other countries over the past three years. Despite multiple requests for comments, neither the Office of the US Trade Representative nor Emirati officials have provided an official statement.