MNI POLITICAL RISK - Cracks Emerge In Big Beautiful Bill

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Executive summary:

• President Donald Trump will meet German Chancellor Friedrich Merz today for a bilateral meeting and working lunch. A spray at the top will be Trump’s first press interaction since his bust-up with Elon Musk over the ‘One Big Beautiful Bill’.
• Merz is unlikely to be in for an Oval Office 'ambush', but the Trump administration has a long list of grievances with Germany. Merz will tout a pledge to make the Bundeswehr Europe’s strongest army, facilitated by loosening Germany’s restrictive debt brake. 
• Staffing shortages at government agencies could impact the accuracy of key data releases.
• The White House sought to discredit a CBO estimate that the GOP megabill will add $2.4 trillion to federal deficits.
• Senate changes to the megabill's provisions on SALT and clean energy credits are likely to complicate final passage in the House.
• Trump suggested that the debt limit could be carved out of the reconciliation package, a move that could buy the GOP more time.
• Trump conceded that a call with Russian President Vladimir Putin would not "lead to immediate Peace". Senator Graham (R-SC) said he will exempt countries that help Ukraine's defence from his sanctions bill, smoothing over some potential objections from Europe.
• Iran’s supreme leader effectively rejected the US nuclear proposal.
• Poll of the Day: The 90-day deadline the Trump administration set itself to negotiate trade deals is a tenth of the time such deals usually take.

Please find the full article attached below: US DAILY BRIEF