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      Donald Trump announces 30% tariffs on goods from the EU and Mexico

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      Donald Trump announced on Saturday that goods imported from both the European Union and Mexico will face a 30% US tariff rate starting 1 August, in letters posted on his social media platform, Truth Social.The tariff assault on the EU came as a shock to European capitals as the European Commission and the US trade representative Jamieson Greer had spent months hammering out a deal they believed was acceptable to both sides.The agreement in principle put on Trump’s table last Wednesday involved a 10% tariff, five times the pre-Trump tariff, which the bloc already described as “pain”.EU trade ministers will meet on Monday for a pre-arranged summit and will be under pressure from some countries to show a tough reaction by implementing €21bn ($24.6bn) in retaliatory measures, which they had paused until midnight the same day.In his letter to Mexico’s leader, Trump acknowledged that the country had been helpful in stemming the flow of undocumented immigrants and fentanyl into the United States.But, he said, the country had not done enough to stop North America from turning into a “Narco-Trafficking Playground”.“We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,” Trump wrote in the letter to the EU. “Our relationship has been, unfortunately, far from Reciprocal.”Claudia Sheinbaum said on Saturday she is sure an agreement can be reached before Trump’s threatened tariffs take effect on 1 August.Speaking during an event in the Mexican state of Sonora, the Mexican president added that Mexico’s sovereignty is never negotiable.The higher-than-expected rate has dealt a blow to the EU’s hopes of de-escalation and a trade deal and could risk a trade war with goods of low margins including Belgian chocolate, Irish butter and Italian olive oil.The EU was informed of the tariff hike before Trump’s declaration on social media.In a letter to the EU, Trump warned that the EU would pay a price if they retaliated: “If for any reason you decide to raise your Tariffs and retaliate, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge.”The European Commission president, Ursula von der Leyen, said the 30% rate would “disrupt transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic”.She said the bloc was one of the more open trading places in the world, and still hoped to persuade Trump to climb down.“We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” she said.Italy’s prime minister, Giorgia Meloni, called for “goodwill  … to reach a fair agreement that can strengthen the west as a whole. It would make no sense to trigger a trade war between the two sides of the Atlantic.” She added that both sides should avoid “polarisation”.The decision to hike the tariffs will also be another test of Trump’s ability to act in good faith in negotiations.Brussels will view the latest threat as a maneuver by Trump to extract more concessions from the EU, which he once described as “nastier” than China when it came to trade.Bernd Lange, head of the European Parliament’s trade committee, said on Saturday that Brussels should react immediately with countermeasures against Trump’s “outrageous” threat to hike tariffs on imports from the European Union.The EU had been negotiating intensively with Washington for more than three weeks and had made concessions, said Lange.“It is brazen and disrespectful to increase the tariffs on European goods announced on April 2 from 20% to 30%,” Lange told Reuters.“This is a slap in the face for the negotiations. This is no way to deal with a key trading partner.”While Trump indicated earlier this week that his new rates, also levelled against big economies including Japan, South Korea and Brazil, will not apply until 1 August, his latest tactic will create much distrust.Europe should make it clear that these “unfair trade practices” were unacceptable, Lange said.“We have postponed the first stage of our countermeasures for the time being, but I am firmly convinced that they must now be implemented immediately,” he said.“The first list of countermeasures must be activated on Monday as planned, and the second list should also follow quickly.”Brazil’s president, Luiz Inácio Lula da Silva, downplayed the impact of the threatened 50% tariff. Trump and Lula have indicated a willingness to negotiate, though Lula also said: “Trump could’ve called, but instead posted the tariff news on his website – a complete lack of respect which is typical of his behavior towards everyone.”Even if Trump had agreed to the proposal put on his table on Wednesday, further negotiations would have been needed in any case to create a legal text that can be formally registered by the US government, a process that is itself laden with risk.The UK took seven weeks to get its agreement registered with a promise included to reduce tariffs on car exports from 27.5% to 10%, but the agreed zero tariff for the British steel industry was omitted.Douglas Holtz-Eakin, a former congressional budget office director and president of the center-right American Action Forum, said the letters were evidence that serious trade talks had not been taking place over the past three months. He stressed that nations were instead talking among themselves about how to minimize their own exposure to the US economy and Trump.“They’re spending time talking to each other about what the future is going to look like, and we’re left out,” Holtz-Eakin said.He added that Trump was using the letters to demand attention, but, “in the end, these are letters to other countries about taxes he’s going to levy on his citizens”.The new tariff ends a turbulent week for the EU with Trump announcing an extension for talks until 1 August on Monday, then on Tuesday announcing the EU would “probably” receive a letter setting its new US tariff rate within 48 hours, claiming the bloc had shifted from being “very tough” to “very nice”.But diplomats viewed it as a mixed message as Trump stressed that he was still talking to negotiators from the bloc, but that he was displeased with European policies toward US tech firms. More

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      Threats, delays and confusion: 10 key points to understand another week of Trump tariff turmoil

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      Donald Trump ramped up his trade rhetoric this week, firing off more than 20 letters to governments outlining new tariff rates if agreements aren’t reached by 1 August.In April, Trump announced a 10% base tariff rate and additional duties ranging up to 50% for many other countries, although he later delayed the effective date for all but 10% duties until 9 July after market panic.Trump officials initially suggested they would strike dozens of deals with key economies by the 9 July deadline, but as the 90-day pause ended this week, the president announced a range of new rates for various countries, but delayed their implementation until next month.Here’s what’s happened:

      Trump informed powerhouse suppliers Japan, South Korea and a number of other nations at the start of this week that they will face tariffs of at least 25% starting from August unless they can quickly negotiate deals.

      On Wednesday he announced more tariffs on countries like the Philippines, Sri Lanka and Algeria, as well as a 50% tariff on products from Brazil, tying the move to what he called the “witch-hunt” trial against its former president, Jair Bolsonaro. Trump criticised the trial Bolsonaro is facing over trying to overturn his 2022 election loss. Brazil’s president, Luiz Inácio Lula da Silva, threatened to hit back with reciprocal 50% tariff on US goods.

      On Thursday, Trump announced the US would impose a 35% tariff on imports from Canada, despite ongoing negotiations and prime minister Mark Carney’s decision last month to rescind a digital services tax that faced criticism from the US president. Carney said his government would continue to defend Canadian workers and businesses in their negotiations and work towards the 1 August deadline.

      Trump also said on Thursday that a letter would be sent to the European Union, the US’s biggest trading partner, “today or tomorrow”. Last week the EU and US were closing in on a high-level “framework” trade deal that would avert 50% tariffs on all exports from the bloc.

      The steep tariff rates announced throughout the week range from 25-50%, with some of the harshest levies imposed on developing nations in south-east Asia, including 32% for Indonesia, 36% for Cambodia and Thailand and 40% on Laos and Myanmar, a country riven by years of civil war.

      On his first official visit to Asia, US secretary of state Marco Rubio sought to reassure regional powers of Washington’s commitment to them, saying countries there may get “better” trade deals than the rest of the world. Prior to Rubio’s arrival in Kuala Lumpur, Malaysian prime minister Anwar Ibrahim condemned the tariffs at the opening of an Asean foreign ministers’ meeting.

      Trump has also vowed to implement tariffs of up to 200% on foreign drugs and 50% on copper. Copper prices hit a record high in the US after the announcement.

      US treasury secretary Scott Bessent said he expected several trade announcements this week, but to date the US has secured just two deals with trading partners. The first with the UK, signed on 8 May, includes a 10% tariff on most UK goods, including cars, and zero tariffs for steel and aluminium. A second deal was reached with Vietnam last week that sets a 20% tariff for much of its exports, although the full details are unclear, with no text released.

      On Thursday, Trump said the tariffs had been “very well-received”, adding that the stock market “hit a new high today”.

      Global stock markets have largely shrugged off the latest threats. Analysts say traders now expect a deal or another delay, while investors appear to be waiting until a deal is done or the tariffs kick in. More

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      Trump announces 50% tariff on Brazil, citing what he claims is a ‘witch-hunt’ against Bolsonaro – live updates

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      Donald Trump announced a 50% tariff on imports from Brazil in a letter posted on social media in which he began by complaining about the the prosecution of his ally, the former president Jair Bolsonaro.Until now, Trump’s tariff letters have been nearly identical, changing little more than the names of countries and leaders and the tariff rates, but the intemperate letter addressed to Brazil’s current president, Luiz Inácio Lula da Silva, was markedly different, beginning with a diatribe about the supposed “international disgrace” of the “Witch Hunt” against Bolsonaro, who is now standing trial before the country’s supreme court for his role in an alleged coup attempt on 8 January 2023, following his election defeat.The pro-Bolsonaro riots at the seat of Brazil’s federal government in Brasília that day closely echoed the pro-Trump riot at the US capitol on January 6 2021.“The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader during his Term , including by the United States, is an international disgrace. This Trial should not be taking place. It is a Witch Hunt THAT should end IMMEDIATELY!”, Trump wrote, employing the idiosyncratic writing style of his social media posts in a formal letter.“Due in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans (as lately illustrated by the Brazilian Supreme Court, which has issued hundreds of SECRET and UNLAWFUL Censorship Orders to U.S. Social Media platforms, threatening them with Millions of Dollars in Fines and Eviction from Brazilian Social Media market),” Trump added, “starting on August 1, 2025, we will charge Brazil a Tariff of 50% on any and all Brazilian products sent into the United States, separate from all Sectoral Tariffs.”In addition to his outrage over the prosecution of Bolsonaro, over the failed coup attempt, Trump’s letter referred to the country’s decision to ban the former president from running in the next election, and to a dispute over a Brazilian supreme court judge ordering Truth Social, Trump’s social media platform, and Rumble, a video-sharing platform JD Vance invested in, to remove the US-based accounts of a leading supporter of Bolsonaro.As the Guardian reported in February, Trump’s company and Rumble, which is backed by the far-right tech billionaire Peter Thiel, sued the Brazilian supreme court justice Alexandre de Moraes over the orders in federal court in Florida.Donald Trump’s enraged letter to his Brazilian counterpart, Luiz Inácio Lula da Silva, announcing that the US would impose a 50% tariff on imports from Brazil, said that the move was motivated in part by the treatment of former president Jair Bolsonaro, who was barred from running for office until 2030 and is on trial for allegedly plotting to remain in office after losing his bid for re-election in 2022.The culmination of Bolsonaro’s efforts to hold on to power was a riot by his supporters in the nation’s capital who tried to prevent the transfer of power to the election’s winner, Lula, on 8 January 2023.Given that Trump still maintains that he was within his rights to plot to remain in office himself, after losing his bid for re-election in 2020, and the efforts culminated in a riot by his supporters on January 6 2021, it is not hard to see why Trump seems to be so dedicated to the idea that Bolsonaro did nothing wrong.As our colleague Tiago Rogero reported last month, Bolsonaro denied masterminding a far-right coup plot during testimony in his trial before Brazil’s supreme court, but did admit to taking part in meetings to discuss “alternative ways” of staying in power after his defeat in the 2022 election.In just over two hours of questioning, the 70-year-old said that after the electoral court confirmed Luiz Inácio Lula da Silva’s election victory, “we studied other alternatives within the constitution.”Those options included the deployment of military forces and suspension of some civil liberties, Bolsonaro said, but he argued that such discussions could not be considered an attempted coup.During his first term in office, it was obvious that Trump saw then president Bolsonaro – a far-right, climate-change denier – as a kindred spirit, and Bolsonaro’s son, Eduardo, cultivated close ties to Trump’s inner circle, and family, during visits to the US.Eduardo Bolsonaro took leave from his post as a congressman in Brazil and has been living in the US since March, lobbying Trump and Republican politicians to impose sanctions on Brazil.Brazil’s currency, the real, fell over 2% against the dollar late on Wednesday after Trump posted a letter online imposing a 50% tariff on imports and scolding the nation for its supposed mistreatment of its former leader, Jair Bolsonaro, who stands accused of trying to overturn his 2022 election loss through a coup.Trump’s letter said his administration will start collecting the 50% tariff on products imported to the US from Brazil, “separate from all sectoral tariffs”, starting on 1 August.Donald Trump announced a 50% tariff on imports from Brazil in a letter posted on social media in which he began by complaining about the the prosecution of his ally, the former president Jair Bolsonaro.Until now, Trump’s tariff letters have been nearly identical, changing little more than the names of countries and leaders and the tariff rates, but the intemperate letter addressed to Brazil’s current president, Luiz Inácio Lula da Silva, was markedly different, beginning with a diatribe about the supposed “international disgrace” of the “Witch Hunt” against Bolsonaro, who is now standing trial before the country’s supreme court for his role in an alleged coup attempt on 8 January 2023, following his election defeat.The pro-Bolsonaro riots at the seat of Brazil’s federal government in Brasília that day closely echoed the pro-Trump riot at the US capitol on January 6 2021.“The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader during his Term , including by the United States, is an international disgrace. This Trial should not be taking place. It is a Witch Hunt THAT should end IMMEDIATELY!”, Trump wrote, employing the idiosyncratic writing style of his social media posts in a formal letter.“Due in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans (as lately illustrated by the Brazilian Supreme Court, which has issued hundreds of SECRET and UNLAWFUL Censorship Orders to U.S. Social Media platforms, threatening them with Millions of Dollars in Fines and Eviction from Brazilian Social Media market),” Trump added, “starting on August 1, 2025, we will charge Brazil a Tariff of 50% on any and all Brazilian products sent into the United States, separate from all Sectoral Tariffs.”In addition to his outrage over the prosecution of Bolsonaro, over the failed coup attempt, Trump’s letter referred to the country’s decision to ban the former president from running in the next election, and to a dispute over a Brazilian supreme court judge ordering Truth Social, Trump’s social media platform, and Rumble, a video-sharing platform JD Vance invested in, to remove the US-based accounts of a leading supporter of Bolsonaro.As the Guardian reported in February, Trump’s company and Rumble, which is backed by the far-right tech billionaire Peter Thiel, sued the Brazilian supreme court justice Alexandre de Moraes over the orders in federal court in Florida.In brief remarks to the press earlier, Israeli prime minister Benjamin Netanyahu said that following his second meeting with Donald Trump in two days: “President Trump and I have a common goal: we want to achieve the release of our hostages, we want to end Hamas rule in Gaza, and we want to make sure that Gaza does not pose a threat to Israel any more.”On the ceasefire negotiations, the Israeli leader, who was at the US Capitol for meetings with lawmakers, went on:
      President Trump wants a deal, but not at any price. I want a deal, but not at any price.
      Israel has security requirements and other requirements, and we’re working together to try to achieve them.
      Donald Trump earlier told reporters there is a “very good chance” of a ceasefire in Gaza this week or next. He said
      There’s a very good chance of a settlement this week on Gaza. We have a chance this week or next week.
      Trump made it clear several times that his priority was achieving “peace” and getting the hostages back, but – like Netanyahu – he made no mention of other urgent matters like the desperate need to safely get aid to starving Palestinians in the strip.Asked by a reporter whether pushing out Palestinians to third countries they have no connection to will make Israel safer in the long run, Netanyahu said:
      We’re not pushing out anyone, and I don’t think that’s President Trump’s suggestion. His suggestion was giving them a choice.
      He claimed Palestinians should have “freedom of choice” to leave Gaza, “no coercion, no forcible dislocation. If people want to leave Gaza they should be able to do so,” he said of the besieged territory, much of which his military has flattened to rubble.Israel stands accused of committing genocide and ethnic cleansing in Gaza, and has made clear its intention to seize parts of the territory and remain there indefinitely.The US supreme court has maintained a judicial block on a Republican-crafted Florida law that makes it a crime for immigrants in the US illegally to enter the state.The justices denied a request by state officials to lift an order by Florida-based US district judge Kathleen Williams that barred them from carrying out arrests and prosecutions under the law while a legal challenge plays out in lower courts. Williams ruled that Florida’s law conflicted with the federal government’s authority over immigration policy.Florida’s attorney general James Uthmeier and other state officials filed the emergency request on 17 June asking the supreme court to halt the judge’s order. Williams found that the Florida law was likely unconstitutional for encroaching on the federal government’s exclusive authority over US immigration policy.The state’s request to the justices was backed by America First Legal, a conservative group co-founded by Stephen Miller, a senior aide to Donald Trump and a key architect of the administration’s hardline immigration policies.Florida’s immigration measure was passed by the state’s Republican-controlled legislature and signed into law in February by governor Ron DeSantis. It made Florida one of at least seven states to pass such laws in recent years, according to court filings.The American Civil Liberties Union in April sued in federal court to challenge the law. Bacardi Jackson, executive director of the ACLU of Florida, in a statement issued after the challenge was filed said that Florida’s law “is not just unconstitutional – it’s cruel and dangerous”.Williams issued a preliminary injunction in April that barred Florida officials from enforcing the measure.The Atlanta-based 11th US circuit court of appeals in June upheld the judge’s ruling, prompting the Florida officials to make an emergency request to the supreme court.On the same day that Florida’s attorney general filed the state’s supreme court request, Williams found him in civil contempt of court for failing to follow her order to direct all state law enforcement officers not to enforce the immigration measure while it remained blocked by the judge.Williams ordered Uthmeier to provide an update to the court every two weeks on any enforcement of the law.The Senate has voted 53 to 43 approve Republic Airways CEO Bryan Bedford to head the Federal Aviation Administration.Bedford, the head of the regional air carrier nominated by Donald Trump and approved for a five-year-term, will oversee $12.5bn in funding over five years to remake the aging US air traffic control system passed by Congress last week.Bedford has also pledged to maintain tough oversight of Boeing, which came under harsh criticism from the National Transportation Safety Board last month for a mid-air emergency involving a new Alaska Airlines 737 MAX 9 missing four key bolts.The Federal Emergency Management Agency should be eliminated in its current form and reformed so it responds more effectively to disasters, homeland security secretary Kristi Noem said at a meeting on reforming Fema on Wednesday.Speaking at a review council discussing reforms of Fema, Noem said the “entire agency needs to be eliminated as it exists today, and remade into a responsive agency”.Noem’s comments were a restatement of her thinking on Fema’s future but notable given that Fema personnel have been deployed to Texas to help in search and rescue efforts following flash floods on 4 July that have killed at least 119 people, with scores more still unaccounted for.Noem, who chairs the Fema Review Council, noted that the agency had provided resources and supported the search and recovery efforts in Texas, but criticized the agency for what she called past failures to respond to disasters effectively.“It has been slow to respond at the federal level,” Noem said. “That is why this entire agency needs to be eliminated as it exists today, and remade into a responsive agency.”Defenders of the agency have said the Trump administration is seeking to politicize a vital agency that helps states both prepare for natural disasters like hurricanes and floods and clean up in the aftermath.Further to my earlier post on this, Donald Trump said that five west African nations are going to lower their tariffs and that the United States treats the continent better than China does.At a meeting with the leaders of Gabon, Guinea-Bissau, Liberia, Mauritania and Senegal at the White House, Trump added that he did not think those countries at the gathering were likely to see any US tariffs.Donald Trump also said that his administration will reach a deal with Harvard University.“Harvard’s been very bad – totally antisemitic. And, yeah, they’ll absolutely reach a deal,” he told reporters at the White House.Earlier we reported that his administration had escalated its feud with Harvard, declaring the Ivy League school may no longer meet the standards for accreditation and that it would subpoena it for records about its international students.Donald Trump said there is a “very good chance” of a ceasefire in Gaza this week or next, after meeting Israel’s prime minister Benjamin Netanyahu yesterday for the second time in two days to discuss the situation.“There’s a very good chance of a settlement this week on Gaza,” Trump told reporters. “We have a chance this week or next week.”He made it clear several times that his priority was achieving “peace” and getting the hostages back, but made no mention of other matters like the desperate need to safely get aid to starving Palestinian people in the strip.Donald Trump said he would release more letters to countries notifying them of higher US tariff rates today and tomorrow, including Brazil.“Brazil, as an example, has not been good to us, not good at all,” Trump told reporters at the event with west African leaders at the White House. “We’re going to be releasing a Brazil number, I think, later on this afternoon or tomorrow morning.”Trump said the tariff rates announced this week were based on “very, very substantial facts” and past history.Donald Trump earlier told a table of west African leaders that he would like to travel to Africa “at some point”.Trump has never visited the continent in an official capacity, and his signaling that he’s open to doing so is no doubt tied to his view of the many commercial opportunities for the US in African countries.Trump’s guests today include the leaders of Gabon, Guinea-Bissau, Liberia, Mauritania and Senegal, and has so far concentrated on his “trade, not aid” policy.With all of these countries facing 10% tariffs on goods exported to the US, they seem keen to try to negotiate this rate down. Indeed several leaders have sought to flatter Trump as a “peace-maker” and said they want him to get a Nobel Peace Prize, while also touting their countries’ wealth in assets such as critical minerals and rare earths and their strategic importance in terms of migration and maritime security.War-torn South Sudan has said it is holding a group of eight men controversially deported from the United States.Only one of them is from South Sudan. The rest comprise two people from Myanmar, two from Cuba, and one each from Vietnam, Laos and Mexico.The Trump administration is trying to move unwanted migrants to third countries as some nations refuse to accept returnees. Administration officials said the men had been convicted of violent crimes in the US. The decision has been fought in US courts.“They are currently in Juba under the care of the relevant authorities, who are screening them and ensuring their safety and wellbeing,” the South Sudanese foreign ministry said in a statement late on Tuesday.It did not give details, but said the “careful and well-studied decision” was part of “ongoing bilateral engagement”.“South Sudan responded positively to a request from the US authorities as a gesture of goodwill, humanitarian cooperation and commitment to mutual interests,” it added.The deportations have raised safety and other concerns among some in South Sudan.“South Sudan is not a dumping ground for criminals,” said Edmund Yakani, a prominent civic leader.United Nations experts, appointed by the UN Human Rights Council but who do not speak on behalf of the UN, have criticised the move.“International law is clear that no one shall be sent anywhere where there are substantial grounds for believing that the person would be in danger of being subjected to … torture, enforced disappearance or arbitrary deprivation of life,” 11 independent UN rights experts said in a statement.As Donald Trump approaches six months in office as president, his administration’s agenda has shaken every corner of US life.According to research from Harris Poll, Americans are reconsidering major life events including marriage, having children and buying a home amid economic anxiety under the Trump administration.Six in 10 Americans said the economy had affected at least one of their major life goals, citing either lack of affordability or anxiety around the current economy.We want to hear from you. Have you been delaying major life decisions amid economic and political anxieties? When did things begin to feel destabilized? What effect in particular has delaying life decisions had on your household?Find the link to take part here:EU trade commissioner Maroš Šefčovič has not had his scheduled call with US trade representative Jamieson Greer yet, so those on standby for a possible announcement by Donald Trump today on a deal with the bloc may have some time to wait. More

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      Trump and US commerce secretary say tariffs are delayed until 1 August, sparking confusion

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      Donald Trump has said his administration plans to start sending letters on Monday to US trade partners dictating new tariffs, amid confusion over when the new rates will come into effect.“It could be 12, maybe 15 [letters],” the president told reporters, “and we’ve made deals also, so we’re going to have a combination of letters and some deals have been made.”With his previously announced 90-day pause on tariffs set to end on 9 July, the president was asked if the new rates would come into effect this week or on 1 August, as some officials had suggested.“No, there are going to be tariffs, the tariffs, the tariffs are going to be, the tariffs,” the president began uncertainly. “I think we’ll have most countries done by July 9, yeah. Either a letter or a deal.”Sensing the confusion, his commerce secretary, Howard Lutnick, jumped in to add: “But they go into effect on August 1. Tariffs go into effect August 1, but the president is setting the rates and the deals right now.”In April, Trump announced a 10% base tariff rate on most countries and additional duties ranging up to 50%, although he later delayed the effective date for all but 10% duties until 9 July.The new date of 1 August offers countries a further three-week reprieve but also plunges importers into an extended period of uncertainty because of the lack of clarity around the tariffs.Stock markets slipped in Asia on Monday amid the confusion. Japan’s Nikkei lost 0.3%, while South Korean stocks fell 0.7%. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1%.European stocks were mixed. In the UK, the blue chip FTSE 100 index slipped 0.3%, with Shell and BP the biggest fallers on the back of weaker oil prices. The German Dax index rose by 0.3%, while in France the Cac 40 was broadly flat. The Stoxx Europe 600, which tracks the biggest companies on the continent, was also flat.Industrial metals dropped, with copper down by 0.6% to $9,808 per tonne on the London Metal Exchange. Aluminium fell by 1.1% to $2,561 a tonne on the exchange, where all major metals were trading lower on Monday morning.In an update on his social media platform Truth Social, Trump said the US would begin delivering “TARIFF Letters, and/or Deals” from noon ET on Monday.“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” he added in a separate post, referring to the developing nations bloc that includes Brazil, Russia, India, China and South Africa.After a summit in Brazil on Sunday, Brics leaders had issued a joint statement raising “serious concerns about the rise of unilateral tariff” measures, which they said risked hurting the global economy.On Monday, the Chinese government said it opposed tariffs being used as a tool to coerce others. Mao Ning, a spokesperson for the Chinese foreign ministry, said the use of tariffs served no one.Scott Bessent, the US treasury secretary, told CNN’s earlier on Sunday that several big announcements of trade agreements could come in the next days, noting that the EU had made good progress in its talks.He said Trump would also send out letters to 100 smaller countries with whom the US does not have much trade, notifying them that they would face higher tariff rates first set on 2 April and then suspended until 9 July.“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along then on August 1 you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” Bessent told CNN.Since taking office, Trump has set off a global trade war that has roiled financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries.Bessent said on Friday that negotiations were focused on 15 to 18 agreements with important partners. So far, Trump has signed deals with only two of the 60 countries he threatened with tariffs in April – the UK and Vietnam.Indonesia, with which the EU hopes to sign a trade deal by the end of the summer, will sign a deal to import at least 1m tonnes of US wheat annually for the next five years, the country’s flour mills association told AFP on Monday, as Jakarta lays the groundwork to avoid the worst of Trump’s tariffs. More

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      US supreme court declines to fast-track challenge to Trump tariffs

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      The US supreme court declined on Friday to speed up its consideration of whether to take up a challenge to Donald Trump’s sweeping tariffs even before lower courts have ruled in the dispute.The supreme court denied a request by a family-owned toy company, Learning Resources, that filed the legal challenge against Trump’s tariffs to expedite the review of the dispute by the nation’s top judicial body.The company, which makes educational toys, won a court ruling on 29 May that Trump cannot unilaterally impose tariffs using the emergency legal authority he had cited for them. That ruling is currently on hold, leaving the tariffs in place for now.Learning Resources asked the supreme court to take the rare step of immediately hearing the case to decide the legality of the tariffs, effectively leapfrogging the US court of appeals for the District of Columbia circuit in Washington, where the case is pending.Two district courts have ruled that Trump’s tariffs are not justified under the law he cited for them, the International Emergency Economic Powers Act. Both of those cases are on appeal. No court has yet backed the sweeping emergency tariff authority Trump has claimed. More

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      Trump to leave G7 summit early and return to Washington – as it happened

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      Donald Trump will leave the G7 summit early and return to Washington DC on Monday, the White House said about an hour after the president said people in Iran’s capital Tehran should evacuate immediately.Trump’s evacuation warning on Truth Social followed a warning from the Israeli defense forces issued a formal evacuation order to residents of Tehran warning them of the imminent bombing of “military infrastructure”.Trump was originally supposed to arrive back in the US in the early hours of Wednesday morning, according to people familiar with the matter.That’s it for today. My colleagues are continuing coverage of the developments in the Middle East here.Here’s what happened today:

      Donald Trump is leaving the G7 Summit early and return to Washington DC on Monday. “You probably see what I see and I have to be back as soon as I can,” Trump said in an apparent nod to the intensifying conflict in the Middle East.

      President Trump has directed national security staff to convene in the situation room, both CNN and Fox News are reporting.

      Trump says ‘everyone should immediately evacuate Tehran’ and that Iran “should have signed the ‘deal’”.

      The Republican-run Senate Finance Committee published a modified text of Trump’s One Big Beautiful Bill Act that proposes Medicaid reforms and a new federal deduction for state and local taxes.

      Japan’s Prime Minister Shigeru Ishiba met with President Trump on the sidelines of the G7 meeting on Monday to discuss import auto tariffs Washington imposed on Japan, Reuters is reporting.

      European leaders at G7 trying to bring Iran back to negotiating table. But Iran is demanding a joint ceasefire with Israel, while Benjamin Netanyahu, the Israeli prime minister, is resisting the move, and Donald Trump praised the Israeli campaign, suggesting he did not yet believe it was time to relieve the pressure on Iran.

      Britain and the United States should finalize “very soon” the implementation of a trade deal agreed last month, Keir Starmer has said ahead of a meeting with Donald Trump in Canada.

      The US justice department has asked a federal appeals court to dismiss a lawsuit challenging race-conscious admissions at the US Naval Academy after the elite military school said it changed its policy under Donald Trump. The Naval Academy disclosed in March that it was no longer considering race or ethnicity in its admissions decisions following directives from Trump and defense secretary Pete Hegseth

      US House speaker Mike Johnson said he has postponed his planned 22 June trip to Israel to address its parliament, as an escalating battle between Israel and Iran has raised fears of a broader conflict.

      The American Bar Association has sued the Trump administration, seeking an order that would bar the White House from pursuing what the ABA called a campaign of intimidation against major law firms. The lawsuit, filed in federal court in Washington DC, said the administration violated the US Constitution in a series of executive orders targeting law firms over their past clients and lawyers they hired.

      Minnesota shooting suspect had more than 45 names of elected officials, prosecutors say. Reuters reports that notebooks recovered from Boelter’s car, as well as the home where he had been staying, showed that he had meticulously planned the attacks for some time. He had the names and, in some cases, home addresses for more than 45 elected officials – “mostly or all Democrats” – according to an affidavit from an FBI agent.

      The suspect in the assassination of a Minnesota lawmaker and her husband this weekend drove to the homes of two other state politicians before he succeeded in killing one of the targets of his carefully planned attack, federal authorities said today.

      A federal judge has said she would issue a brief extension of an order temporarily blocking Donald Trump’s plan to bar foreign nationals from entering the US to study at Harvard University while she decides whether to issue a longer-term injunction.

      Trump once again complained about removing Russia from what was once the G8. Russia used to be a part of the exclusive club of major economies but was kicked out following its 2014 annexation of Crimea from Ukraine.

      Trump says Iran wants to talk about de-escalating hostilities with Israel, and he advises that they should do so immediately “before it’s too late”.

      Iran has been urgently signaling that it seeks an end to hostilities and resumption of talks over its nuclear programs, sending messages to Israel and the US via Arab intermediaries, the Wall Street Journal reports.

      The Trump Organization has launched a self-branded mobile service and a $499 smartphone, dubbed Trump Mobile, signaling a new effort to court conservative consumers with a wireless service positioned as an alternative to major telecom providers. The new mobile venture will include call centers based in the United States and phones made in America, the organization said.
      Trump aide Alex Pfeiffer said Israeli news reports that indicate US fighter jets are participating in airstrikes on Iran are not true.“This is not true,” Pfeiffer posted on X. “American forces are maintaining their defensive posture, and that has not changed. We will defend American interests.”“You probably see what I see and I have to be back as soon as I can,” Trump said in an apparent nod to the intensifying conflict in the Middle East, when asked why he’s cutting short his G7 trip and heading back to Washington tonight.President Trump has directed national security staff to convene in the situation room, both CNN and Fox News are reporting, citing a White House official. Trump will be leaving the G7 Summit in Canada early.There are few other details available.Donald Trump will leave the G7 summit early and return to Washington DC on Monday, the White House said about an hour after the president said people in Iran’s capital Tehran should evacuate immediately.Trump’s evacuation warning on Truth Social followed a warning from the Israeli defense forces issued a formal evacuation order to residents of Tehran warning them of the imminent bombing of “military infrastructure”.Trump was originally supposed to arrive back in the US in the early hours of Wednesday morning, according to people familiar with the matter.The scientist responsible for overseeing the CDC team that collects data on COVID-19 and RSV hospitalizations resigned on Monday.Dr. Fiona Havers told colleagues in an email that she no longer had confidence the data would be used “objectively or evaluated with appropriate scientific rigor to make evidence-based vaccine policy decisions,” according to Reuters.She resigned before a planned meeting of a new vaccine panel put in place by Health Secretary Robert Kennedy Jr. after he fired all 17 members of the CDC’s independent vaccine advisory panel. Kennedy also dropped a recommendation to get the Covid shot for healthy children and pregnant women.A Health and Human Services spokesperson told Reuters that the agency is committed to “gold standard science.”Trump says everyone should evacuate Tehran and that Iran “should have signed the ‘deal’”.“I told them to sign,” Trump posted on Truth Social. “What a shame, and waste of human life. IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!”Canadian Prime Minister Mark Carney said he thinks he and Trump will be able to wrap up a new economic and security deal between the US and Canada within 30 days. His office did not say whether that means he had accepted Trump’s earlier emphasis on tariffs.Defense Secretary Pete Hegseth said he ordered the deployment of additional defensive capabilities to the Middle East over the weekend “to enhance our defensive posture in the region,” according to a statement he posted on X on Monday. He did not disclose what military capabilities he sent to the region.“Protecting U.S. forces is our top priority and these deployments are intended to enhance our defensive posture in the region,” Hegseth posted.The Republican-run Senate Finance Committee published a modified text of Trump’s One Big Beautiful Bill Act that proposes Medicaid reforms and a new federal deduction for state and local taxes.The proposed changes will now be debated by Senate Republicans.Among the proposed changes are:

      An end to the $7,500 tax credit on new electric vehicles 180 days after the law is enacted. And an end to the $4,000 used-vehicle EV tax credit 90 days after the law is passed.

      A full phase-out of solar and wind energy tax credits by 2028, but an extension of the incentive for Trump administration-favored hydropower, nuclear and geothermal energy to 2036.
      Minnesota senator Ann Rest says she is “so grateful” for the work of law enforcement after learning that the shooting suspect, Vance Boelter, was allegedly parked outside her home before going to former Rep. Melissa Hortman’s home.“I have been made aware that the shooting suspect was parked near my home early Saturday morning,” Rest said in a statement. “I am so grateful for the heroic work of the New Hope Police Department and its officers. Their quick action saved my life.I am also thankful for the work of state and local law enforcement to apprehend the suspect before he could take any more lives.While I am thankful the suspect has been apprehended, I grieve for the loss of Melissa Hortman and her husband Mark, and I am praying for the recovery of John and Yvette Hoffman.”At the G7 summit, Trump said a new economic deal with Canada was possible but that he wanted tariffs to be a part of it, according to Reuters.“I have a tariff concept. [Canadian Prime Minister] Mark [Carney] has a different concept … we’re going to see if we can get to the bottom of it,” Trump said when meeting Carney on the sidelines of a G7 summit in Alberta. “I’m a tariff person.”Canada is the top supplier of steel and aluminum to the United States and currently faces tariffs imposed by Trump on both metals as well as on auto exports.“We are in the middle of a discussion – we are not at the end of the discussion. Our position is that we should have no tariffs on Canadian exports to the United States,” Kirsten Hillman, Canada’s ambassador to Washington, told reporters after Carney met Trump.“We will continue to talk until we find a deal that is the best deal we can achieve for Canada,” Hillman said.Japan’s Prime Minister Shigeru Ishiba met with President Trump on the sidelines of the G7 meeting on Monday to discuss import auto tariffs Washington imposed on Japan, Reuters is reporting.Tokyo is urging Washington to drop the tariffs because they threaten to slow Japan’s economy, the Japanese government said.Ishiba wants Trump to end the 25% auto tariff he imposed on Japanese cars and a 24% reciprocal tariff paused until July 9. More

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      Trump trade deal shows how vital China’s rare-earth metals are to US defense firms

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      The draft trade agreement with China announced by Donald Trump on Wednesday would ease concerns from top US military suppliers about rare-earth metals and magnets that, if cut off permanently, could hobble production of everything from smart bombs to fighter jets to submarines and other weapons in the US arsenal.While the deal has not yet been finalised, it may reassure major defense companies such as Lockheed Martin, the largest US user of samarium – a rare-earth metal used in military-grade magnets – whose supply is entirely controlled by China.The issue of China’s export restrictions on the metals and magnets was so important that Trump specifically mentioned them as part of his announcement of a broader trade agreement with China that would reduce US tariffs to 55% and Chinese tariffs to 10%.“Our deal with China is done, subject to final approval with President Xi and me,” Trump wrote. “Full magnets, and any necessary rare earths, will be supplied, up front, by China.”Rare earths are crucial to the production of F-35 fighter jets, Virginia- and Columbia-class nuclear-powered submarines, Tomahawk missiles, radar systems, unmanned aerial vehicles and smart bombs, according to Gracelin Baskaran of the Center for Strategic and International Studies, a thinktank.China in April imposed export restrictions on seven rare earth elements during the tough negotiations over Trump’s new tariffs. China also targeted the aerospace and defense industries by limiting 15 US entities with ties to the industry from receiving dual-use goods.“The United States is already on the back foot when it comes to manufacturing these defense technologies,” Baskaran said in an interview published by CSIS. “China is rapidly expanding its munitions production and acquiring advanced weapons systems and equipment at a pace five to six times faster than the United States. While China is preparing with a wartime mindset, the United States continues to operate under peacetime conditions.”Trump has amassed a team of foreign policy China hawks, including a number who have warned that the US should focus more on the pacing threat posed by China over the coming decades instead of current conflicts in Ukraine or the Middle East.“Even before the latest restrictions, the US defense industrial base struggled with limited capacity and lacked the ability to scale up production to meet defense technology demands,” she continued. “Further bans on critical minerals inputs will only widen the gap, enabling China to strengthen its military capabilities more quickly than the United States.”China and the US had agreed last month in Geneva to pause the implementation of sky-high tariffs that would have delivered a severe economic blow to manufacturers and consumers in the US, as well as exporters in China.But China maintained export licenses on rare-earth metals used by both defense producers and carmakers that threatened to upend global supply chains and imperil production in the US.In particular, China has a stranglehold on the production and export of samarium, a magnet used in combination with cobalt to provide highly durable magnets used to withstand the intense temperatures in military-grade tech. China produces the entire world’s supply of the rare-earth metal.skip past newsletter promotionafter newsletter promotionIn particular, the magnets are important for the production of guided missiles, satellite-guided “smart bombs”, and aircrafts, including fighter jets, according to Apex Magnets, a supplier.Those supplies of weapons have been depleted through deliveries of missiles and other ordnance to Ukraine and to the Israeli military. Pentagon planners and other officials in the administration of Joe Biden, regularly squared off over whether foreign weapons deliveries expose a US vulnerability in case it faced off with a major military power.In order to break the deadlock, secretary of state Marco Rubio also abruptly announced plans to cancel hundreds of thousands of visas for Chinese students in the US. While publicly that was said as a plan to root out Chinese spies in US higher education, Axios reported that the visa ban was also motivated by China’s obstinance on resuming rare earths exports.The breakthrough comes as Trump is planning to display US military prowess at a parade in Washington DC this weekend that has been seen as an attempt to flex American muscle and reinforce the US president’s bonafides as a supporter of the military.Trump in 2019 ordered the Pentagon to find new sources of procuring rare earth minerals, in particular samarium, because the US did not have the capacity to produce them domestically. The initiative was “essential to the national defense”, he said then. More

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      Majority of Canadians dislike US in face of trade policy and sovereignty threats

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      A majority of Canadians hold unfavourable views towards the US, their closest ally, as frustration over trade policy and threats to Canada’s sovereignty persist.Canada’s growing dislike of its closest trading partner mirrors a shared skepticism in other G7 countries, according to a new poll that finds that Americans like their allies far more than those nations approve of the US.The results come as Canadians maintain boycotts of American goods and avoid travel to the US in response to tariffs imposed by Donald Trump’s administration. But the results of the survey also show the challenge for Mark Carney as the Canadian prime minister seeks to ease tensions between the two economically entwined nations.According to the newly released study from the Pew Research Center, a majority of Americans see the other G7 countries favourably. More than seven in 10 have positive views of Japan (77%), Canada (74%), Italy (74%) and the UK (70%).Those finds come as leaders from those nations prepare to meet in the Canadian province of Alberta later this week for the G7 summit.But those feelings of goodwill are not reciprocated.Populations in all of the G7 countries hold more skeptical views towards the US, with the largest decrease in favorability toward the US among G7 countries coming from Canada. Only one-third of Canadians (34%) think positively of their southern neighbour today, compared with 54% last year.Sixty-four percent of Canadians now hold unfavourable views of the US, and nearly 40% say they hold very unfavourable views of their neighbour, up from 15% who felt that way last year.Canadian wariness towards the US is also reflected in new travel data from Statistics Canada, which found return trips by air fell nearly 25% in May 2025 compared with the same month in 2024. Canadian-resident return trips by automobile dropped by nearly 40% – the fifth consecutive month of year-over-year declines.Carney crafted his successful federal election campaign around a patriotic defiance against Trump’s threats to the nation’s sovereignty. Carney also used his first post-election press conference to once again quash any idea Canada was interested in becoming the 51st US state, a proposal repeatedly floated by Trump.skip past newsletter promotionafter newsletter promotionA positive meeting between the two leaders at the White House in May buoyed hopes among business leaders and diplomats the pair could break the impasse over tariffs. Those fears were dashed after Trump doubled tariffs on Canadian steel and aluminum.Earlier this week, Carney announced Canada would spend far more on its defence budget – a key ask of Trump – while at the same time underscoring his government’s pledge to reduce reliance on the US.“We stood shoulder to shoulder with the Americans throughout the cold war and in the decades that followed, as the United States played a dominant role on the world stage,” he said. “Today, that dominance is a thing of the past.” More