Global Shifts: Spending Plans, Trade Deals, and a New Crypto Frontier

12th June 2025

Trump’s tax bill faces an $11 trillion gap between White House claims and economists' forecasts. UK’s Rachel Reeves unveiled a £2 trillion plan to boost growth and public services. China confirmed a trade deal with the U.S., urging both sides to stick to the agreement. Binance opened crypto trading to Syrians after U.S. sanctions were lifted.

• The $11 Trillion Divide: Trump’s “Big, Beautiful” Bill Faces Economic Reality Check

There’s a staggering $11 trillion gap between what the White House says President Trump’s new tax bill will do and what economists believe. Independent groups like the Congressional Budget Office, the Tax Foundation, and the Penn-Wharton Budget Model estimate the legislation could add around $3 trillion to the deficit over the next decade. But the Trump administration insists the opposite: that the bill will make money, promising up to $8 trillion in surplus thanks to anticipated economic growth.

Economists are scratching their heads. “You can’t square it because it’s ridiculous,” said Erica York of the Tax Foundation, pointing out the bill mainly extends existing tax rates without major economic impact. Still, the White House is holding firm, even as tensions rise on Capitol Hill. Treasury Secretary Scott Bessent faced bipartisan skepticism in a recent hearing, especially when he cited Trump ally Arthur Laffer as proof the bill won't add to the debt,  a moment that drew laughter in the room.

At this point, even some officials in the administration are softening their language, admitting that “it remains to be seen” whether the bill will increase the deficit. Yet spokespeople like Karoline Leavitt are doubling down, recently claiming on Fox News that Trump’s broader agenda will cut the deficit by $8 trillion over the next decade. Whether markets or voters  buy into that optimism is still up for debate. Yahoo. Finance 

• Rachel Reeves Unveils £2 Trillion Plan to Boost UK Growth and Rebuild Public Services

UK finance minister Rachel Reeves has laid out an ambitious multi-year spending plan worth over £2 trillion, aiming to breathe new life into public services and win back the trust of voters. Speaking in Parliament on Wednesday, Reeves emphasized that the government's priorities; health, defence, and infrastructure, reflect the needs of working people, who Labour has pledged to put at the heart of its agenda. The plan includes boosted investment in housing, transport, and clean energy, but with more money going toward health and defence, other departments may feel the pinch.

Reeves has backed her bold plans with the biggest tax increase in a generation and relaxed borrowing rules to allow for long-term investment. She promised departmental budgets would grow by 2.3% a year in real terms, delivering an additional £190 billion for public services compared to the previous Conservative government's framework. However, much of that spending is front-loaded, and from 2025–26 onward, real-terms growth slows to 1.5%. Key winners include defence, set for a 3.6% annual increase, and the NHS, which will see a 2.8% rise, together accounting for a major chunk of day-to-day government spending. CityAM 

• China Confirms Trade Deal with U.S., Reaffirms Commitment to “Keeping Its Word”

China has confirmed its agreement to the latest trade deal announced by U.S. President Donald Trump, signaling a temporary calm in the ongoing economic tensions between the two countries. Following a phone call between Trump and Chinese President Xi Jinping last week, both sides agreed to move forward on the terms of a deal initially outlined in Geneva. “China has always kept its word and delivered results,” Foreign Ministry spokesperson Lin Jian told reporters Thursday, emphasizing that both nations should now stick to the consensus reached.

The agreement, which aims to ease tit-for-tat tariffs, gained momentum with follow-up discussions in London. It also marks a shift in tone after earlier disputes over China’s mineral export restrictions and the U.S.’s subsequent export controls. While President Trump celebrated the deal on social media, highlighting commitments from China on rare earth supplies and concessions on educational exchanges; details around enforcement and implementation are still murky. A White House official later clarified that the U.S. tariff total includes a mix of previously imposed levies and new measures linked to trade imbalances and fentanyl concerns. Bloomberg 

• Binance Opens Crypto Trading to Syrians After U.S. Sanctions Lifted

Crypto giant Binance has officially opened its platform to users in Syria, following the U.S. government's recent move to lift long-standing sanctions on the country. In a statement on Thursday, Binance confirmed that Syrian users can now trade a wide range of cryptocurrencies; over 300 tokens and stablecoins; including popular options like Bitcoin and Ethereum.

The exchange also announced that the Syrian pound is now supported for buying and selling digital assets, making it easier for locals to access crypto markets. The policy shift comes after a surprise decision by the Trump administration last month to ease sanctions, following pressure from Saudi Arabia, which had pushed for the change.

With a new government in place after the fall of former President Bashar al-Assad in December, Syrian leaders say they're eager to rebuild, starting with public services and digital infrastructure. Binance’s entry into the market could mark an important step in the country's economic recovery. Yahoo.Finance 

• Minor Headlines 

• Pentagon Halts M10 Booker Combat Vehicle Program Amid Global Uncertainty. CNN 

• CDC Rehires 450 Staff Members After Previous Layoffs. CityAM 

• Trump Team Reassessing Biden-Era Submarine Deal with Australia and the UK.  CNN 

• Northern Ireland Sees Third Night of Unrest, But Tensions Ease at Key Site. CNN 

• Wincanton Reports Widening Losses as GXO Takeover Talks Drag On. CityAM 

• Scott Bessent Seen as Potential Successor to Fed Chair Jerome Powell. Reuters

• Poundland Sold for £1, Receives Major Cash Injection for Turnaround Effort. Bloomberg 

• UK Agrees to Allow Spanish Passport Checks in Gibraltar Under New EU Deal. Financial Times 

• Meta Reportedly Launching Advanced AI Lab with Massive Pay Packages to Attract Top Talent. Yahoo.Finance 

• DNC Vice Chair David Hogg to Step Down from Leadership Role. Reuters 

• Gen Z Word of the Day 

• Ghosting

• This term is common in the earlier talking stages of a relationship. Ghosting someone means you start ignoring them or stop texting them back.