Trump signs One Big Beautiful Bill into law amid IMF concerns over rising deficits

U.S. President Donald Trump signed his landmark policy bill, the One Big Beautiful Bill, into law on Friday afternoon.

The signing ceremony at the White House came a day after the bill was passed by the House of Representatives on Thursday with a narrow margin of 218 to 214, with every Democrat and two Republicans, Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania, voting against it.

The law represents Trump's agenda policies including tax cuts and funding boosts for military expenditure and border security.

Representatives of both parties in the House were deeply divided on the bill, which features sweeping cuts to spending on healthcare and food programs for the poor while cutting taxes on a broad line of incomes.

It has been predicted that the bill will add 3.3 trillion U.S. dollars to the country's already high debt burden.

Democrats have criticized the bill as "robbing the poor to enrich the wealthy", warning that it could lead to nearly 12 million people losing their health care coverage.

Prior to the House vote, Julie Kozack, spokesperson for the International Monetary Fund (IMF), said that the bill runs counter to the IMF's recommendations that Washington reduce fiscal deficits over the medium term, cautioning that it would exacerbate U.S. fiscal deficit.

Kozack emphasized that the U.S. needs to reduce its fiscal deficit over time to put public debt-to-GDP on a decisive downward path, and the sooner that process starts to reduce the deficit, the more gradual the deficit reduction can be over time.

In recent years, the IMF has recommended that the U.S. raise taxes, including on middle income earners, to close fiscal deficits. However, this new legislation continues Trump's policies in his first term as U.S. President and introduces additional tax cuts.

The IMF is currently assessing the potential global economic implications of the bill, with findings expected to be included in the upcoming World Economic Outlook report set to be released at the end of July.

In May, Gita Gopinath, the IMF's First Deputy Managing Director, warned about the "rising debt levels" in the U.S., urging swift action to reduce the deficit in response to widespread concerns stemming from the U.S. tariff policies.

Gopinath cited data from the U.S. Congressional Budget Office, which shows that federal debt held by the public rose to 98 percent of GDP at the end of the fiscal year 2024, compared to 73 percent a decade ago.

According to previous IMF forecasts, the U.S. GDP growth is expected to slow to 1.8 percent in 2025 due to the impacts of its tariff policies.

Trump signs One Big Beautiful Bill into law amid IMF concerns over rising deficits

Trump signs One Big Beautiful Bill into law amid IMF concerns over rising deficits

Trump signs One Big Beautiful Bill into law amid IMF concerns over rising deficits

Trump signs One Big Beautiful Bill into law amid IMF concerns over rising deficits

Visiting Chinese Foreign Minister Wang Yi said Saturday China is willing to work with Lesotho to strengthen exchanges on governance experience, enhance coordination in multilateral affairs, and advance the China-Lesotho strategic partnership.

Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks when meeting with Lesotho Prime Minister Sam Matekane in the capital of Lesotho.

During the meeting, Wang congratulated Lesotho on the 60th anniversary of its independence this year, and spoke highly of Lesotho government's efforts to prioritize economic development and steer the African country onto a path of sustainable growth. Since the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) in 2024, the two sides have advanced cooperation under the 10 partnership action plans unveiled at the summit, successfully implementing a number of key projects to effectively promote Lesotho's development and revitalization, Wang said.

China stands ready to work with Lesotho to strengthen exchanges on governance experience, enhance coordination in multilateral affairs, and push for greater development of the China-Lesotho strategic partnership, he added.

Calling on the two sides to firmly support each other, Wang said that China will accelerate the implementation of its zero-tariff policy for African countries, including Lesotho, expand bilateral trade, investment and industrial cooperation, facilitate broader access of Lesotho's specialty products to the Chinese market, and continue to support Lesotho's national development.

China will continue to stand firmly with African countries, uphold justice for the Global South, including Lesotho, oppose unilateralism and acts of bullying, and work together to build a community with a shared future for humanity, Wang said.

On his part, Matekane said during the meeting that Lesotho cherishes its friendship with China and the strategic partnership between the two countries, and expressed gratitude for China's valuable support for the development of African countries, including Lesotho.

Lesotho firmly adheres to the one-China principle and resolutely supports China in safeguarding its core interests, he said, noting that his country stands ready to strengthen strategic mutual trust with China, expand people-to-people exchanges, jointly implement the outcomes of the FOCAC Beijing Summit, and deepen cooperation in areas such as infrastructure, manufacturing and energy.

Matekane stressed that China's zero-tariff policy for African products will inject new impetus into Lesotho's development. He also expressed Lesotho's willingness to strengthen solidarity and cooperation with China on multilateral platforms such as BRICS to jointly address global challenges.

On the same day, Wang also held talks with Lejone Mpotjoana, minister of foreign affairs and international relations of Lesotho.

China, Lesotho to strengthen exchanges, advance cooperation

China, Lesotho to strengthen exchanges, advance cooperation