New Delhi, July 4 -- The International Monetary Fund (IMF) has sounded alarms about Trump's new tax bill, warning it could blow up America's deficit by $4 trillion over ten years.

The legislation extends Trump's 2017 tax cuts while adding new breaks like tax-free tips and overtime pay. Despite some spending cuts, the plan would still add $3.4 trillion to the deficit before interest costs.

IMF spokesperson Julie Kozack stressed this "runs counter" to needed debt reduction, especially with US debt nearing 98% of GDP, up from 73% a decade ago.

Trump's team argues tax cuts will boost growth to 3%, offsetting losses through more tax revenue and tariff income. But economists overwhelmingly disagree.

Six Nobel Prize winners call the bill "sh...