House Republicans are struggling to reach a consensus on President Trump's budget bill. The legislation passed the Senate on Tuesday, but some Republican holdouts in the House aren't happy with the changes made in the upper chamber.

Washington

The White House is urging House Republicans to support President Trump's budget bill, which includes an extension of tax cuts first enacted in 2017. While some of Trump's economic advisors argue that these cuts will boost economic growth and help offset the federal deficit, experts note that the impact of tax cuts on growth is not guaranteed and depends on various factors, including consumer sentiment and interest rates. 

The debate comes as the Trump administration announces a new trade deal with Vietnam, adjusting tariffs on Vietnamese goods. The tariffs, initially set at 46 percent, have been reduced to 20 percent for goods manufactured in Vietnam and 40 percent for goods routed through Vietnam from other countries. These changes may affect the cost of consumer products, though companies may absorb some of the increased costs.

Will Trump's tax cut promises lead to economic growth?

The White House is urging House Republicans to come together and pass President Trump's massive budget bill. At the center of the legislation is an extension of the tax cuts passed during the first Trump administration in 2017. Two of President Trump's top economic advisors wrote in an opinion piece for USA Today, quote, if Congress passes President Donald Trump's proposed tax cuts, we are confident that a surge in economic growth will help offset the federal deficit. CBS News Money Watch correspondent Kelly O'Grady joins us now. It is always great to have you here to make sense of all of this. Does lowering taxes automatically mean economic growth? And if not, why? So it doesn't always. And the reason being is if you and I have more money in our pockets or companies have more money to play with, they don't always go back and spend or invest that. Now, there are a number of times if we go back through history where you do see this spurring economic growth. Think of Kennedy's tax cuts in the 60s, Reagan's tax cuts in the 80s. Those both did and are associated with economic growth. After that, the 2017 tax cuts, though, a lot of economists say yes, some say no. So the jury is still out on that. The reason why it would, in theory, spur economic growth is think back to what happened during COVID. A lot of people got stimulus checks, more money in your pocket. In this case, you get taxed less. So you would bring more money home. The idea would be you and I would go out and spend more. But we are at a really interesting moment where this isn't happening in a vacuum. You also have consumer sentiment going down. So maybe you and I don't spend more. We say, hey, I've got more money in my pocket. I'm going to save. I'm not going to go spur economic growth. It's also depending, I think, on a lot on these interest rate cuts that the president is hoping for. So there is a credence to the argument that it would spur economic growth, but a lot of factors have to be exactly right. So many things at play there. Let's turn to global trade. The U.S. has announced that they have, the Trump administration announced a trade deal with Vietnam. What more do we know about that? So initially, if you go back to the liberation day, as the White House called it, it was going to be a 46 percent tariff on Vietnam. It was brought down to 10 percent. I know that's a high number. It is a high number. It was brought down to 10 percent with the July 9th deadline. This is now going to land, though, at 20 percent for goods that are coming into the U.S. that are manufactured in Vietnam, and 40 percent if goods were manufactured in another country and then shipped through Vietnam. What this means, maybe your Nikes, Lululemon, companies that manufacture products there, it could cost more. But we also know there are many points in the supply chain where companies are going to try and eat a little bit of the cost here and there. So you and I will still go out and buy those products. All right.

Ukrainian President Volodymyr Zelenskyy said Kyiv will do "anything" to advance EU accession talks. Zelenskyy spoke alongside Danish Prime Minister Mette Frederiksen, President of the European Council António Costa and President of the European Commission Ursula von der Leyen.

Kyiv

Ukraine Invasion

Ukraine will do 'anything' to advance EU accession talks: Zelenskyy

President Donald Trump said Washington will start sending letters to countries on Friday specifying what tariff rates they will face on imports to the United States, a clear shift from earlier pledges to strike scores of individual deals.

Global Tariffs

Trump: Letters telling countries their tariff rate going out Friday

Indonesian rescuers on Thursday (July 3) temporarily halted a search for 30 people still missing after a ferry carrying 65 people sank near the island of Bali with the loss of six lives, the national search and rescue agency said.

Gilimanuk

Indonesia suspends search for 30 missing after ferry sinks near Bali

After marathon debate sessions in the Senate and House, President Donald Trump’s budget bill passed in the House. Republicans secured the biggest win of Trump’s presidency.

Trump’s landmark ‘big, beautiful bill’ narrowly passes U.S. House

Florida says the first group of migrant detainees have arrived at the new immigration detention center known as "Alligator Alcatraz." CBS News correspondent Shanelle Kaul has more.

Ochopee

First group of detainees arrive at "Alligator Alcatraz," Florida says

U.S. President Donald Trump said Thursday (July 3) that he spoke with Russian President Vladimir Putin and that he plans to hold a call with Ukrainian President Volodymyr Zelenskyy. CBS News White House reporter Willie James Inman has more.

Trump speaks with Putin, plans call with Zelenskyy

CNN’s Priscilla Alvarez reports on a lawsuit from lawyers for Kilmar Abrego Garcia alleging he suffered “torture and mistreatment” after he was wrongfully deported and held in El Salvador’s notorious mega prison.

Tecoluca

Kilmar Abrego Garcia claims he was tortured in El Salvadoran prison

The Kremlin welcomed the development, with spokesman Dmitry Peskov claiming it proves Western arsenals are being depleted and predicting that less aid will hasten the end of the conflict.

U.S. pauses military aid to Ukraine over depleted weapons stockpile

Two contractors employed by UG Solutions spoke to the AP on condition of anonymity as they were revealing their employers’ internal operations.

Jerusalem

U.S. contractors say live ammo used at Gaza aid distribution site

Democratic leader Hakeem Jeffries spoke for hours on the House floor about potential impacts of President Trump's "big, beautiful bill" that Republicans are looking to pass before July 4. Following debate, the House is set for a final vote on the massive budget bill.

House debates Trump's 'big, beautiful bill' ahead of final vote

CBS News political contributor Caroline Polisi joins "CBS Mornings" to break down the jury's verdict in Sean "Diddy" Combs' federal trial and the judge's decision to deny bail for the music mogul ahead of his sentencing.

Manhattan

Sean "Diddy" Combs denied bail after split verdict

Liverpool soccer player Diogo Jota has died aged 28, just weeks after marrying his childhood sweetheart. The footballer passed away in a car crash in northern Spain.

Madrid

Liverpool soccer player dies in car crash 10 days after wedding

The Pentagon said that U.S. strikes 10 days ago had degraded Iran's nuclear program by up to two years, suggesting the U.S. military operation likely achieved its goals despite a far more cautious initial assessment that leaked to the public.

Tehran

Iran Strikes

Iran nuclear program degraded by up to two years: Pentagon

Days before his 90th birthday, the Dalai Lama announced the Gaden Phodrang Trust, a non-profit he founded, will have the sole authority to recognize his future reincarnation, but China insists it will choose the successor of the Tibetan spiritual leader.

Lhasa

China rejects Dalai Lama’s succession plan

The U.S. Congress inched towards approving President Donald Trump’s Big Beautiful Bill, despite attempts by Democrats to stop it. The bill is Trump’s signature legislation which includes massive spending increases on the military and immigration enforcement while slashing social programs.

Trump’s Big Beautiful Bill nears approval

Sean (Diddy) Combs was found guilty on prostitution-related charges, but was acquitted on more serious charges of racketeering and sex trafficking giving him a maximum sentence of 20 years. But the courtroom victory was subdued following a judge’s ruling to deny him bail.

New York

Diddy denied bail, avoids life in prison

President Trump says Israel has agreed to a 60-day ceasefire in Gaza, but it remains unclear if Hamas will accept the terms. CBS News senior foreign correspondent Debora Patta has more.

Trump says Israel has agreed to Gaza ceasefire conditions

Bryan Kohberger changed his plea to guilty Wednesday for the 2022 murders of four University of Idaho students. CBS News national correspondent Carter Evans has more on the case.

Boise

New details revealed as Kohberger pleads guilty for 2022 Idaho murders

The Wisconsin Supreme Court struck down a state abortion law that was adopted in 1849 in a 4-3 landmark decision. CBS News' Shanelle Kaul reports.

Madison

Wisconsin Supreme Court strikes down 176-year-old state abortion ban

Macron and Putin held regular discussions around the start of Russia's invasion of Ukraine, with Macron visiting Putin in Russia in February 2022, but dialogue eventually stalled.

Paris

Macron held 'substantial' phone call with Putin

President Trump toured “Alligator Alcatraz,” a migrant detention center he teamed up with Ron DeSantis to build in the Everglades.

Everglades

Protesters gather around ‘Alligator Alcatraz’ as President Trump visits

Jurors in Sean “Diddy” Combs’ federal criminal trial said they have reached a verdict on four of the five counts, but they cannot reach a verdict on Count 1, which is racketeering conspiracy. The judge has instructed the jury to keep deliberating. Deliberations will resume Wednesday (July 2).

Jury reaches partial verdict in Sean "Diddy" Combs case

The U.S. Senate passed the Republicans' reconciliation bill on Tuesday (July 1) after more than 24 hours of marathon voting on amendments. Vice President JD Vance cast the tie-breaking vote.

U.S. Senate passes Trump's "big, beautiful bill"

The new order does not rescind existing sanctions on ousted longtime President Bashar al-Assad, his top aides, officials and family members who are accused of having committed war crimes and human rights violations against Syrian civilians.

Trump signs executive order lifting U.S. sanctions on Syria

Former criminology graduate student Bryan Kohberger has agreed to plead guilty to killing four Idaho college students in 2022, a move that would spare him the death penalty under a deal with prosecutors, ABC News reported on Monday (June 30).

Moscow

Suspect in murders of four Idaho college students to plead guilty

Thailand's Constitutional Court on Tuesday suspended Prime Minister Paetongtarn Shinawatra from duty pending a case seeking her dismissal, adding to mounting pressure on a government fighting for survival on multiple fronts.

Bangkok

Thai court suspends PM from duty pending case seeking her dismissal

Israeli strikes killed at least 60 people across Gaza on June 30 in some of the heaviest attacks in weeks as Israeli officials were due in Washington for a new ceasefire push by U.S. President Donald Trump.

Israel strikes pound Gaza, killing 60, ahead of U.S. talks

U.S. President Donald Trump says he's not planning to extend the pause on global tariffs set to expire on July 9. Brian Schwartz, reporter for the Wall Street Journal, joins CBS News to discuss.

Trump says he's not planning to extend July 9 global tariff deadline

The jury has informed the judge in Sean "Diddy" Combs' sex trafficking trial that they have concerns about one juror's ability to follow the court's instructions. Deliberations in the trial are underway.

Jury in Sean "Diddy" Combs trial sends note to judge

Jury deliberations are set to begin in the Sean "Diddy" Combs sex trafficking and racketeering trial. CBS News' Katrina Kaufman has the latest updates.