The House on May 22 voted 215 to 214 to pass H.R. 1, the “One Big Beautiful Bill” that reflects the tax priorities of President Trump and House Republicans. The bill includes proposed tax law changes, increased funding for border security and national defense, and spending reductions affecting a large number of federal programs. The bill also includes a provision to increase the federal statutory debt limit by $4 trillion.
The tax provisions of H.R. 1 would extend permanently, with some modifications, certain individual, pass-through business and international tax provisions enacted as part of the 2017 Tax Cuts and Jobs Act (TCJA) that currently are set to change at the end of this year. H.R. 1 features several new business and individual tax proposals, including a new “bonus” depreciation provision for qualified production property and other business investment incentives, “no tax on tips” and certain other tax proposals, and a $40,000 cap for state and local tax deductions, beginning this year. This is up from a $30,000 cap in the previous plan and up from the current $10,000 cap. The bill also accelerates the phase-out date of certain Inflation Reduction Act (IRA) clean energy tax credits.
The package will now go to the Senate, which will begin action in June after a Memorial Day recess week. Republicans are using the budget reconciliation process, which allows the legislation to be approved with a simple-majority vote instead of the 60-vote majority usually required. Republicans currently have a 53-47 majority in the Senate. Congressional leaders have set a goal of sending a final bill to be signed by President Trump before Congress begins its July 4 recess.
The focus on the tax bill comes after weeks of back-and-forth tariffs announcements. On May 12, the US and China agreed to a 90-day pause on most tariffs the countries imposed on one another over the last month. US tariffs on Chinese imports would decrease to 30% from 145%, and Chinese tariffs on US goods would fall to 10% from 125%, the countries said in a joint statement. Both countries affirmed the importance of their trade relationship. This followed a trade deal with the United Kingdom announced on May 8, the first agreement since the president announced his sweeping tariffs announcement on April 2.
Negotiations with several countries, along with some back-and-forth exchanges and some adjustments to address market turmoil or economic concerns, have been ongoing since the president’s “Liberation Day” announcement. As part of this announcement, President Trump set a baseline 10% tariff on most imports from all countries, with higher additional country-specific “reciprocal” tariffs on dozens of countries based on perceived trade imbalances that were set to go into effect April 9. Instead, the president on April 9 announced a 90-day pause on the additional country-specific reciprocal tariffs for certain countries, with a10% base tariff remaining in effect on most imported goods (with the exception of certain exempt goods) from all countries (except Canada, Mexico and China). Goods covered by the United States-Mexico-Canada Agreement (USMCA) would continue to remain exempt from tariffs, while non-USMCA-compliant goods would be subject to a 25% tariff.
President Trump has been moving at a rapid pace since his inauguration, signing more than 100 executive orders (EOs). The president is also focusing on a move toward deregulation, particularly around energy policy. Executives will want to sort through the president’s latest moves to understand what changes mean for their industries, where to find opportunity and how to mitigate risk. Learn more about the administration’s policy changes, what it means for business and how you can prepare. Check back for updates.
May 27, 2025
The European Union agreed to fast-track trade talks with the US.
May 25, 2025
President Trump agreed to delay imposing a 50% tariff on imports from Europe until July 9. Two days earlier, he threatened a June 1 start date for the tariffs, citing stalled talks.
May 22, 2025
The House of Representatives voted 215-214 to pass the “One Big Beautiful” tax bill.
May 12, 2025
The US and China agreed to a 90-day pause on most tariffs each country imposed on the other over the past month.
- House Republicans unveiled the full text of their tax bill.
May 8, 2025
- President Trump announced a trade agreement with the United Kingdom.
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100 days in: What executives are saying now (insights from PwC’s Pulse Survey) | Monday, June 9, 4:00-5:00 p.m. ET
Join our webcast as we share the latest insights on what’s top of mind for executives after the administration’s first 100 days in office. We’ll explore policy changes and the impact on business plans and strategy, opportunities executives see, risks they’re facing and what they’re doing to drive growth and stay competitive. We’ll look at real-time data from our Pulse Survey to understand what executives are thinking right now.
“We can expect a lot of change with the new administration, and that means both risk and opportunity. The best thing to do is to prepare, prepare, prepare. Be proactive and agile and think about who across your company you might need to work with to take advantage of what’s coming.”
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Real-time scenario framework: PwC’s approach to tariffs and supply chain
Global trade is changing. With new tariffs, shifting policies, and increasingly complex supply chains, the challenge is not just to react swiftly, but to make strategic decisions that keep you ahead. PwC’s approach to tariffs and supply chain through the real-time scenario framework is your window into making smart moves to manage risks and capture opportunities. We can help you understand what tariff and trade disruptions mean for your business and your industry, both in the short term and in the future – and what you can do to stay competitive.
PwC’s real-time scenario framework
