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    Netanyahu vows to combat what he calls ‘vilification against Israel’ online

    Benjamin Netanyahu said on Tuesday that he’s vowed to combat an orchestrated social media campaign of “vilification and demonization” that he says is responsible for a drop in support for Israel among US voters, especially Democrats.“I think there’s been a concerted effort to spread vilification and demonization against Israel on social media,” the Israeli prime minister told journalists on Capitol Hill after being asked to respond to opinion polls showing a move away from the historic trend of strong backing for Israel.“It’s directed, it’s funded. It is malignant. We intend to fight it, because nothing defeats lies like the truth, and we shall spread the truth for everyone to see once people are exposed to the facts, we win hands down. That’s what we intend to do in the coming months and years.”Netanyahu’s comments came during a visit to Congress, where he met the Republican speaker of the House of Representatives, Mike Johnson.They also followed the recent victory of Zohran Mamdani in the Democratic primary race for the mayor of New York, which commentators believe was partly fueled by the candidate’s vocal support for Palestinian rights and criticism of Israel’s military offensive in Gaza.A range of surveys have shows a marked decline in support for Israel among Democratic-leaning voters amid rising disquiet about the impact of the war in the now devastated coastal territory. The ongoing war has killed about 60,000 people – most of them Palestinians – and has seen much of the population threatened with starvation.A Gallup poll in March showed less than half of the US public sympathized with Israel’s position, the lowest figure recorded since the organization started taking surveys on the issue. Among Democrat voters, 38% sympathize with the Palestinians over the Israelis, a reversal of a 2013 Gallup survey, which saw Democrats sympathizing with Israelis by a margin of 36%.Other polls have shown similar trends, raising concerns for the future of the traditional strong bipartisan US support for Israel.The Israeli leader said his government had accepted a proposal from Qatari mediators for a fresh ceasefire with Hamas, saying it matched what had been proposed by Steve Witkoff, Donald Trump’s Middle East envoy.skip past newsletter promotionafter newsletter promotionWitkoff, speaking at a cabinet meeting earlier on Tuesday, had spelled out the terms of a proposed deal to broker a 60-day ceasefire he hoped would be in place by the end of the week, saying it would involve the release of Israeli hostages.“Ten live hostages will be released, nine deceased will be released,” Witkoff said. “We’re meeting at the president’s direction with all the hostage families to let them know, and we think that this will lead to a lasting peace.”Netanyahu said: “We accepted a proposal that came from the mediators. It’s a good proposal. It matches Steve Witkoff’s original idea and we think that we’ve gotten closer to it, and I hope we can cross the line.”He also said he expected to meet the US president again during his current visit, his third to Washington since Trump was inaugurated in January. The two met at the White House on Monday evening, when Netanyahu presented Trump with a letter nominating him for a Nobel peace prize.Netanyahu said the the military coordination with Washington during Israel’s recent 12-day war with Iran, which resulted in repeated strikes on Tehran’s nuclear facilities, was unprecedented.“In the entire 77 years of Israeli history, there has never been the degree of coordination of cooperation and trust between America and Israel as we have today,” he said. “And I credit President Trump with this extraordinary achievement.” More

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    Trump is bullying Canada over ‘digital taxes’ and Canada caved | Joseph Stiglitz

    Donald Trump’s announcement calling off trade talks with Canada over its digital tax – and that he would impose retaliatory tariffs – demonstrates, once again, not only the president’s ignorance of economics and willful disregard of international norms and the rule of law, but also his willingness to use brute power to get whatever he and the oligarchs who support him want.He was wrong in labeling the tax as outrageous and “a direct and blatant attack on our country”. It is actually an efficient tax, well designed to ensure that the technology companies – the profits of which benefit the tech oligarchs who have come to dominate US policy – pay their fair share of taxes.It is accordingly disappointing that Canada appears to have caved, even more so as the prime minister had stood up strongly against Trump’s demand for Canada to become the 51st state. Regrettably, others are giving in – New Zealand and India have reportedly retreated.Trump’s bullying tactics have been in evidence since he took office. In January he threatened to double taxes on Australian citizens and companies in the US if they went ahead with their planned digital levy.Why digital taxes?Because digital companies operate all over the globe, and generate revenue in countries where they do not have a physical presence, they avoid taxation by shifting revenue and profit around the world. Some of the most egregious examples include Google moving $17bn to Bermuda, Apple owing France 10 years of back taxes, and the Italian government’s recent investigation of Meta over whether the firm owes €938m in VAT payments. Apple was so successful in avoiding taxes in Europe that it is estimated that it paid in some years a tax of just 0.005% on its European profits. Of course, when the most profitable companies in the world don’t pay their fair share of taxes, it just shifts the burden on to others.As more and more activity occurs online, and often from services provided from abroad, countries are losing revenue from sales, employment and profits taxes. Just because an activity is provided digitally doesn’t mean it should not be taxed; indeed, economists argue that digital taxes are among the easiest to administer, precisely because there is a digital record. The idea of the digital service tax is to help countries recoup revenue by taxing any kind of digital service provided from anywhere in the world: online sales, digital advertising, data usage, e-commerce or streaming services. They might include consumption taxes on internet purchases. Indeed, more than 18 countries have such taxes and some 20 others have proposed them.When it looked like the Organisation for Economic Co-operation and Development (OECD) would get a global agreement to raise corporate taxes, the agreement included a prohibition on digital taxes. Indeed, one of the reasons that the US was even willing to engage in these discussions on global taxation was to circumscribe others’ ability to impose such taxes. While that agreement was under discussion, the US government, influenced by its tech giants, strongly opposed these digital taxes and then US treasury secretary Janet Yellen spent a good deal of time calling up her counterparts and telling them not to impose them.But on 20 January, Trump issued an executive order saying that the agreement that had been negotiated over years and years “had no force or effect” in the US. As a result, more countries are now trying to decide whether to keep or adopt digital services taxes. Imposing them will incur the wrath of the US government and tech giants, but countries are well within their rights to do so. Indeed, there was a moratorium on levying digital taxes while there were some prospects of the OECD agreement going into effect; but with Trump, that prospect has all but disappeared, and that moratorium has come to end.Any country concerned with designing efficient, fair and easy-to-administer digital services duties should consider such taxes – indeed, they have the support not only of economists but of global civil society, including the Independent Commission on Reform of International Corporate Taxation (which I co-chair).skip past newsletter promotionafter newsletter promotionLong-established principles of international taxation hold that so long as a tax does not discriminate across countries – or corporations that are headquartered in different countries – which taxes a country imposes is a matter of national sovereignty. A country may be foolish, levying taxes that are not good for its economy, but so be it: that is a matter for the country to decide. In this case, the tax is actually good for the economy. What Trump has been doing has violated international norms in several ways: using the threat of tariffs or taxes against corporations headquartered in a country whose policy he dislikes, and walking away from what were supposed to be binding trade agreements, without even a pretense of using the mechanisms for dispute resolution embodied in those agreements.The question now: will countries cave in to these threats or can they stick together and collect the billions they are rightly owed? Make no mistake: what is at stake is more than money that will be collected. It is a matter of the rule of law, which Trump has trampled on so fiercely, both within the US and globally. The rule of law is essential not just for economic performance, but for social justice and democracy. And Canada’s capitulation to Trump’s unilateral move makes a mockery of the whole process by which international agreements are negotiated. Some were skeptical that the so-called “inclusive framework” was but a facade: others may have been at the table, but their voices were not heard. What has now happened verifies this: whatever the US wants, it gets.Canada should have stood up for its principles and national sovereignty, even in the face of such transparent bullying. The alternative now emerging is the law of the jungle, brute power and Canada becoming, de facto, the 51st US state.

    Joseph E Stiglitz is a Nobel laureate in economics, university professor at Columbia University and chief economist of the Roosevelt Institute

    Anya Schiffrin, senior lecturer at Columbia University’s School of International and Public Affairs, and her student Philip L Crane contributed to this piece More

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    Tuesday briefing: Is a ceasefire in Gaza on the table as Netanyahu and Trump meet in Washington?

    Good morning. The war in Gaza – which began with the horror of the Hamas slaughter and kidnapping of innocent Israelis on 7 October 2023, and has brought unimaginable death and destruction to the civilian population of Gaza almost every day since – has entered its 21st month.So far every attempt to end the conflict has failed. But the the fraying patience of the US president, Donald Trump, who has promised to deliver peace to Gaza, has seen Israeli prime minister Benjamin Netanyahu dispatch a team of negotiators to Qatar for indirect talks with Hamas, with the Israeli leader expected to come under pressure on this week’s trip to Washington DC to agree to a ceasefire.Yet despite Trump’s desire to end the war, and Israel and Hamas making positive noises about the prospect of a ceasefire, the two sides are still far apart on a number of crucial negotiating points.Last night, just hours before Netanyahu told Trump at a White House dinner that he had nominated him for the Nobel peace prize, Israel laid out a plan that would force all Palestinians in Gaza into a camp on the ruins of Rafah, in a scheme that legal experts described as “a blueprint for crimes against humanity”.For today’s newsletter, I talked to the Guardian’s Middle East correspondent Emma Graham-Harrison about the prospects for peace, and what is at stake for everyone involved. First, the headlines.Five big stories

    Immigration | Keir Starmer and Emmanuel Macron are expected to announce plans for French police to do more to block small boats crossing the Channel at a summit in London this week, but a wider deal on returning asylum seekers is still up in the air.

    Iran | The Iranian president, Masoud Pezeshkian, said in an interview released on Monday that Israel, which last month fought a 12-day war with Iran, had attempted to assassinate him by bombarding an area in which he was holding a meeting.

    Poverty | Children in England are living in “almost Dickensian levels of poverty” where deprivation has become normalised, the children’s commissioner has said, as she insisted the two-child benefit limit must be scrapped.

    Environment | Millions of tonnes of treated sewage sludge is spread on farmland across the UK every year despite containing forever chemicals, microplastics and toxic waste. An investigation by the Guardian and Watershed has identified England’s sludge-spreading hotspots and shown where the practice could be damaging rivers.

    US news | The Texas senator Ted Cruz ensured the Republican spending bill slashed funding for weather forecasting, only to then go on vacation to Greece while his state was hit by deadly flooding – a disaster that critics say was worsened by cuts to meteorology.
    In depth: What a new ceasefire might look like – and the risks if it failsView image in fullscreenA few hours before Benjamin Netanyahu and Donald Trump met yesterday, the latest rounds of indirect ceasefire talks between Israel and Hamas in Doha ended without a breakthrough. Despite this, Trump insisted at a dinner with Netanyahu last night that negotiations were “going along very well”.If a new ceasefire is agreed and does come into effect, it will be the third during a war that has claimed the lives of at least 57,000 Palestinians, mostly civilians.The first ceasefire – in November 2023 – lasted just 10 days. The second, in February and March this year, collapsed after Israel reneged on its promise to move to a second phase that could have seen a definitive end to the conflict.In the months since, a new Israeli offensive has claimed the lives of thousands more Palestinians. Extreme hunger is everywhere after an 11-week siege and ongoing tight blockade, with only minimal food and aid allowed in.What are the terms of this new proposed ceasefire?The details of this new deal include the staggered release of 10 living hostages still held in Gaza by Hamas, and the return of the bodies of 18 more, in exchange for a number of Palestinians held in Israeli jails. There would also be more aid entering the area and a phased withdrawal of Israeli forces from some parts of the Gaza Strip.Like the previous ceasefires, it will last for 60 days, with Trump and regional allies guaranteeing Hamas that Israel will engage in “meaningful” talks to bring about a permanent end to the war.The deal would leave 22 hostages, 10 of them believed to be alive, still held in Gaza.How strong is Netanyahu’s position with Trump?Emma Graham-Harrison said that, on paper, Donald Trump has most of the leverage, which he is using to push a reluctant Netanyahu to the negotiating table.Two weeks ago, the world watched as Trump publicly eviscerated Israel for breaking a tentative ceasefire with Iran. He had already forced the Israeli prime minister to turn around fighter jets on their way to Iran – a display of raw power over Israel’s leader that Emma said is “unprecedented”.Since Trump’s F-word outburst, the two allies have once again appeared in lockstep, with the US going on to launch a bombing run in support of Israel against Iran’s nuclear programme, handing Netanyahu a huge political boost.Trump has also backed Netanyahu on a number of other key political issues, calling for corruption charges facing the Israeli prime minister to be dropped and continuing to back his policy for distributing food to Palestinians in Gaza through the Gaza Humanitarian Foundation (GHF), despite hundreds of Palestinians being shot and killed while trying to reach the distribution points.“Netanyahu has made sure that he appears to be taking Trump’s demands for an end to the war seriously; for example sending a team of negotiators to the ceasefire talks in Doha,” said Emma.At last night’s dinner, Trump was upbeat about the prospect of a ceasefire. When the US president was asked about Israel’s reported plans to force all Palestinians in Gaza into a new “humanitarian city” built on the ruins of Rafah, Trump directed Netanyahu to answer the question. In response Netanyahu said he was working with the US on finding countries that will “give Palestinians a better future”.Does Netanyahu really want to end the war?While Netanyahu is aware he needs to appease Trump’s desire to present himself as a peacemaker by announcing a ceasefire, Emma said that Netanyahu’s critics say he has multiple, compelling reasons not to want a lasting end to the war.He is still very much beholden to far-right parties within his coalition government who are vehemently opposed to a ceasefire. National security minister Itamar Ben-Gvir and finance minister Bezalel Smotrich have both threatened to leave the government if Netanyahu ends the war.“There are very powerful voices in the Israeli government who are openly on a messianic mission to ethnically cleanse Gaza ,” said Emma.There is also the separate issue of that corruption trial which, even with Trump’s support, he may not be able to avoid if he loses political office.A third reason Netanyahu might want to keep the war going, Emma said, is that it allows him to delay any official examination of how the 7 October attacks happened on his watch. She thinks one possible option is that Netanyahu could attempt a “political fudge”, accepting a ceasefire and appearing to agree to Trump’s plan that it should lead to a permanent end to the war, while telling allies at home that Israel can return to fighting once the 10 hostages are home.What about Hamas?The hostages held by Hamas are the group’s only significant leverage in the talks, said Emma.Militarily, Hamas has been crippled by Israel’s relentless assault and obliteration of its senior leadership, (although Emma pointed out that Hamas is far from eliminated as a fighting force.“Agreeing to give up more hostages in a situation that doesn’t seem to be concretely leading to a permanent end to the war is arguably not that attractive an option for them,” says Emma. “I think their key aim now will be to end the war in a way that preserves some kind of power and influence in Gaza and trying to making sure that some elements of their organisation are still functioning.”skip past newsletter promotionafter newsletter promotionWhat if the talks fail?The Israeli offensive has reduced most of Gaza to ruins since 2023, displaced almost the entire 2.3 million population, destroyed its healthcare system and killed more than 57,000 people, burying thousands of others under the rubble.The total siege imposed for 11 weeks after the collapse of the last ceasefire has only partly been lifted to allow a small amount of food aid and medical supplies into the territory. Aid workers are saying that fuel stocks are close to running out, which would lead to the “complete collapse” of humanitarian operations, the health system and communications.Amid all the discussions about the ceasefire, the voices of Palestinian people themselves have seldom been heard, so I want to end this newsletter with Lama, a 12-year Palestinian girl who was interviewed by our Gaza correspondent Malak A Tantesh about what is really at stake if peace is not achieved.“I was so happy during the last ceasefire. We felt a bit safe. When the war returned, I cried a lot because it meant going back to the suffering of tents, the summer heat and repeated displacement,” Lama said.When asked about what she was afraid of if the ceasefire talks failed, she told Malak that she was scared of being “torn apart, killed, paralysed or losing a limb”.What else we’ve been readingView image in fullscreen

    If you weren’t tuned in to Australia’s extraordinary “mushroom murders” trial, in which Erin Patterson was found guilty on Monday of deliberately poisoning three relatives, Nino Bucci has a startling breakdown of every twist and turn in the unbelievable tale. Charlie Lindlar, acting deputy editor, newsletters

    Hugh Muir looks back on Ken Livingstone’s speech of defiance and unity that followed the 7/7 London terrorist attacks through the prism of our increasingly divisive politics 20 years on. Annie

    One often hears that we can’t raise taxes on the super-rich or they’ll leave the UK and take their money with them … but is it really true? Lauren Almeida digs into the data in this fascinating piece. Charlie

    Amid the tsunami of Oasis coverage, I loved this piece by Lauren Cochrane on how the band’s fans are having a fashion moment and dusting off their bucket hats and parkas for the reunion tour. Annie

    A compelling piece in the Atlantic (£) from a former New York precinct police chief, Brandon del Pozo, who argues that as ICE agents “rack up arrests on the road to 1 million deportations”, the ghoulish practice of dressing in masks and refusing to identify themselves must end. Charlie
    SportView image in fullscreenTennis | Jannik Sinner was fortunate to advance to the Wimbledon quarter-finals as Grigor Dimitrov was forced to retire through injury when leading by two sets. Novak Djokovic lost the first set in 30 minutes before recovering to beat Alex de Minaur 1-6, 6-4, 6-4, 6-4 and advance. Iga Świątek had a 6-4, 6-1 win over Clara Tauson to set up a quarter-final against 19th-seeded Liudmila Samsonova. The 18-year-old Mirra Andreeva beat Emma Navarro 6-2, 6-3 while Belinda Bencic reached her first Wimbledon quarter-final.Cycling | Tim Merlier took stage three of the Tour de France in Dunkirk after the peloton’s top sprinter and points leader Jasper Philipsen crashed out of the race 60km from the finish.Cricket | Jofra Archer is poised to make his long-awaited comeback in the third Test against India this week, with Brendon McCullum, the England head coach, calling for Lord’s to deliver a pitch that has pace, bounce and sideways movement.The front pagesView image in fullscreenThe Guardian is reporting this morning that “Bosses face ban on non-disclosure deals that silence victims of abuse”. The i paper has “50,000 children will be lifted out of poverty due to rebellion on welfare reforms”. “Trump grants three-week reprieve on return of ‘reciprocal’ trade tariffs” – that’s the Financial Times while the Express takes aim at “‘Hypocrisy’ of Labour’s homes plan”. The Telegraph heralds the French president’s state visit with “No borders between us, King to tell Macron”. “Hand back our £771 million, Mr Macron” says the Daily Mail, tacking “s’il vous plait” on the end in mock courtesy. (A Tory says we’ve paid that money to France without it stopping the boats.) The Times sound more realistic with “PM set to press Macron for ‘one in, one out’ deal”. “Victims’ fury as Epstein probe shut down” – by the “Trump team”, says the Mirror. Top story in the Metro today is “Mushroom murderer targeted me four times”.Today in FocusView image in fullscreenTrump’s big beautiful betrayalEd Pilkington explains the president’s “Big Beautiful Bill” and what it will mean for millions of poorer Americans who voted for him last November.Cartoon of the day | Ben JenningsView image in fullscreenThe UpsideA bit of good news to remind you that the world’s not all badView image in fullscreenSometimes it’s the simple things that make all of the difference. Nikki Allen (above) was conditioned to say yes to requests – from a colleague at work, from the PTA, from a friend. But she discovered one night, after distractions kept her from responding to a request for help right away, that urgent queries were not always pressing. “It was the start of a new habit: to stop saying yes on the spot. To pause and think about whether I really want to first,” writes Allen for The one change that worked. “Now, since that night a few years ago, whenever someone asks me to do something … I tell them: ‘Let me check and get back to you.’” It’s a subtle change that has given her more time, energy and autonomy to focus on the things each day that matter much more than other people’s approval.Sign up here for a weekly roundup of The Upside, sent to you every SundayBored at work?And finally, the Guardian’s puzzles are here to keep you entertained throughout the day. Until tomorrow.

    Quick crossword

    Cryptic crossword

    Wordiply More

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    Donald Trump calls Elon Musk’s new political party ‘ridiculous’ and says Tesla owner is ‘off the rails’ – US politics live

    Welcome to our live coverage of US politics and the second Trump administration.Donald Trump has hit out at Elon Musk’s decision to start and bankroll a new US political party that the tech billionaire believes can offer a viable alternative to the Democrats and Republicans.Speaking to reporters before boarding Air Force One yesterday, the US president said:
    I think it’s ridiculous to start a third party. It’s always been a two-party system and I think starting a third party just adds to the confusion.
    Shortly after speaking about his former ally, Trump posted further comments on his Truth Social platform, writing:
    I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.
    Trump and Musk were formerly close allies, with the Tesla boss and X owner appointed to slash federal spending through the unofficial Department of Government Efficiency (Doge) from January through May.Musk fell out with the Republican president over his sprawling tax and spending plan, signed into law on Friday, which is expected to add at least $3 trillion (£2.2 trillion) to the US’s already huge $37tn (£27tn) debt pile. Musk has argued that the bill, which he has described as “utterly insane and destructive”, would irresponsibly add to the US national debt.Musk, the world’s richest person, posted on X over the weekend that he had set up the America Party to challenge the Republican and Democratic “Uniparty”. The details of the structure of the new venture or a timeline for its creation are still unclear.But some of his social media posts suggests the new political party would focus on two or three Senate seats, and eight to 10 House districts.We will have more on this and other US politics stories throughout the day so stick with us.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.”You can read the full story, by my colleagues Robert Mackey, Lauren Almeida and Lisa O’Carroll, here:The US is extremely mindful of BRICS’ economic might and its growing influence on the diplomatic stage. The group, often described as the developing world’s alternative to the G7 group of nations, has undergone a recent rapid expansion.BRICS was founded by Brazil, Russia, India, China and South Africa, but the group last year expanded to include Indonesia, Iran, Egypt, Ethiopia and the UAE.Some of its members have denounced US tariff policies and have suggested reforms to how major currencies are valued.The group pushes for greater representation for emerging economies and thinks western countries have a disproportionate influence on global organisations like the World Bank and International Monetary Fund.In other news, Donald Trump has widened his trade war after saying the US will impose an additional 10% tariff on any countries aligning themselves with the “anti-American policies” of the BRICS group of developing nations that include China and Russia.Trump wrote on social media:
    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.
    His comments came after a joint Sunday statement from the opening of the BRICS summit in Rio de Janeiro in which the group warned the rise in tariffs threatened global trade, continuing its veiled criticism of Trump’s erratic tariff policies.Since his return to the White House, Trump has announced a series of steep import taxes on foreign goods, arguing they will protect American jobs and the US manufacturing industry.In April, in line with this protectionist view, 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 negotiating window until 9 July has led to announced deals only with the UK and Vietnam. You can read more on Trump’s tariff threat in our business live blog.My colleagues Richard Luscombe and Robert Mackey have a little more detail about how the feud between the world’s richest man and the world’s most powerful man has recently escalated. Here is an extract from their story:
    When the pair fell out earlier in the summer, Musk lashed out during an astonishing social media duel in which he stated Trump’s name was in the files relating to associates of the late pedophile and sex trafficker Jeffrey Epstein.
    Musk later deleted the post and apologized to the president as they embarked on an uneasy truce. On Sunday, however, Musk returned to the subject, reposting a photo of the jailed Epstein facilitator Ghislaine Maxwell that questioned why she was the only person in prison while men who engaged in sex with underage girls – a crime colloquially known in the US as statutory rape – were not.
    In other posts he said it would be “not hard” to break the two-party stranglehold in US politics enjoyed by Democrats and Republicans…
    Trump has made clear his feelings about his former friend in recent days after criticism of the bill. In response to Musk’s posts calling the bill “insane”, Trump said he might “look into” deporting the South African-born, naturalized US citizen billionaire.
    Welcome to our live coverage of US politics and the second Trump administration.Donald Trump has hit out at Elon Musk’s decision to start and bankroll a new US political party that the tech billionaire believes can offer a viable alternative to the Democrats and Republicans.Speaking to reporters before boarding Air Force One yesterday, the US president said:
    I think it’s ridiculous to start a third party. It’s always been a two-party system and I think starting a third party just adds to the confusion.
    Shortly after speaking about his former ally, Trump posted further comments on his Truth Social platform, writing:
    I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.
    Trump and Musk were formerly close allies, with the Tesla boss and X owner appointed to slash federal spending through the unofficial Department of Government Efficiency (Doge) from January through May.Musk fell out with the Republican president over his sprawling tax and spending plan, signed into law on Friday, which is expected to add at least $3 trillion (£2.2 trillion) to the US’s already huge $37tn (£27tn) debt pile. Musk has argued that the bill, which he has described as “utterly insane and destructive”, would irresponsibly add to the US national debt.Musk, the world’s richest person, posted on X over the weekend that he had set up the America Party to challenge the Republican and Democratic “Uniparty”. The details of the structure of the new venture or a timeline for its creation are still unclear.But some of his social media posts suggests the new political party would focus on two or three Senate seats, and eight to 10 House districts.We will have more on this and other US politics stories throughout the day so stick with us. More

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    Tesla shares dive as investors fear new Elon Musk political party will damage brand

    Shares in Tesla are heading for a sharp fall in the US as investors fear Elon Musk’s launch of a new political party will present further problems for the electric carmaker.Tesla stock was down more than 7% in pre-market trading on Monday, threatening to wipe approximately $70bn (£51bn) off the company’s value when Wall Street opens.If the shares fell by that much, the value of Musk’s stock would fall by more than $9bn to about $120bn. The Tesla and Space X boss remains comfortably the world’s richest person, with a wealth of about $400bn, according to Forbes.Tesla is valued at just under $1tn but its shares have come under pressure owing to the Tesla CEO’s relationship with Donald Trump.First, Musk’s strong support for the US president created a consumer backlash and now the antagonistic turn in his relationship with Trump has investors worried Musk will be distracted from his day job, or that the White House will punish his businesses.Dan Ives, analyst at Wedbush Securities, said Musk’s announcement that he is bankrolling a US political party will alarm investors.“Very simply, Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story,” Ives said, adding that there was a “broader sense of exhaustion” among Tesla investors that Musk – the company’s largest shareholder – will not stay out of politics.Trump on Sunday called Musk’s plans to form the America party “ridiculous”, launching new barbs at the world’s richest person.skip past newsletter promotionafter newsletter promotionIn a post on the Truth Social tech platform, Trump wrote: “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.”Musk announced the creation of the America party on his X platform at the weekend. He wrote: “When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America party is formed to give you back your freedom.” More

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

    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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    The UN is our best defence against a third world war. As Trump wields the axe, who will fight to save it? | Simon Tisdall

    The United Nations and its agencies have long struggled with funding shortfalls. Now an entrenched problem is becoming an acute crisis in the shadow of Donald Trump’s executioner’s axe. The US is the biggest contributor, at 22%, to the UN’s core budget. In February, the White House announced a six-month review of US membership of all international organisations, conventions and treaties, including the UN, with a view to reducing or ending funding – and possible withdrawal. The deadline for decapitation falls next month.Trump’s abolition of the US Agency for International Development (USAID), and scrapping of most aid programmes, has already badly damaged UN-led and UN-backed humanitarian operations, which rely on discretionary funding. Yet Trump’s axe symbolises a more fundamental threat – to multilateralism and the much-battered international rules-based order. The basic concept of collective responsibility for maintaining global peace and security, and collaboration in tackling shared problems – embodied by the UN since its creation 80 years ago last week – is on the chopping block.The stakes are high – and Washington is not the only villain. Like the US, about 40 countries are behind in paying obligatory yearly dues. Discretionary donations are declining. The UN charter, a statement of founding principles, has been critically undermined by failure to halt Russia’s illegal war of aggression in Ukraine (and by last month’s US-Israeli attack on Iran). China and others, including the UK, ignore international law when it suits. The number and longevity of conflicts worldwide is rising; UN envoys are sidelined; UN peacekeeping missions are disparaged. The security council is often paralysed by vetoes; the general assembly is largely powerless. By many measures, the UN isn’t working.A crunch looms. If the UN is allowed to fail or is so diminished that its agencies cannot fully function, there is nothing to take its place. Nothing, that is, except the law of the jungle, as seen in Gaza and other conflict zones where UN agencies are excluded, aid workers murdered and legal norms flouted. The UN system has many failings, some self-inflicted. But a world without the UN would, for most people in most places, be more dangerous, hungrier, poorer, unhealthier and less sustainable.The US is not expected to withdraw from the UN altogether (although nothing is impossible with this isolationist, ultra-nationalist president). But Trump’s hostile intent is evident. His 2026 budget proposal seeks a 83.7% cut – from $58.7bn to $9.6bn – in all US international spending. That includes an 87% reduction in UN funding, both obligatory and discretionary. “In 2023, total US spending on the UN amounted to about $13bn. This is equivalent to only 1.6% of the Pentagon’s budget that year ($816bn) – or about two-thirds of what Americans spend on ice-cream annually,” Stewart Patrick of the Carnegie Endowment for International Peace noted. Economic development aid, disaster relief and family planning programmes would be gutted.The impact is potentially world-changing. Key UN agencies in the firing line include the children’s fund, Unicef – at a time when the risks facing infants and children are daunting; the World Food Programme (WFP), which could lose 30% of its staff; agencies handling refugees and migration, which are also shrinking; the International court of justice (the “world court”), which has shone a light on Israel’s illegal actions in Gaza; and the International Atomic Energy Agency, which monitors Iran’s and others’ nuclear activities.Trump is already boycotting the World Health Organization, the Palestinian relief agency (Unrwa) and the UN Human Rights Council, and has rescinded $4bn allocated to the UN climate fund, claiming that all act contrary to US interests. If his budget is adopted this autumn, the UN’s 2030 sustainable development goals may prove unattainable. US financial backing for international peacekeeping and observer missions in trouble spots such as Lebanon, Democratic Republic of the Congo and Kosovo, currently 26% of total spending, will plunge to zero.The withdrawal of USAID support is already proving lethal, everywhere from Somalia and Sudan to Bangladesh and Haiti. UN officials describe the situation in post-earthquake, conflict-riven, aid-deprived Myanamar as a “humanitarian catastrophe”. Research published in the Lancet found that Trump’s cuts could cause more than 14m additional deaths by 2030, a third of them children.The WFP, the world’s largest food aid supplier, says its projected $8.1bn funding deficit this year comes as acute hunger affects a record 343 million people in 74 countries. And other donor states are failing to fill the gap left by the US. So far in 2025, only 11% of the $46.2bn required for 44 UN-prioritised crises has been raised. The UK recently slashed its aid budget by £6bn, to pay for nuclear bombs.UN chiefs acknowledge that many problems pre-date Trump. António Guterres, the secretary general, has initiated thousands of job cuts as part of the “UN80” reform plan to consolidate operations and reduce the core budget by up to 20%. But, marking the anniversary, Guterres said the gravest challenge is the destructive attitude of member states that sabotage multilateral cooperation, break the rules, fail to pay their share and forget why the UN was founded in the first place. “The charter of the United Nations is not optional. It is not an à la carte menu. It is the bedrock of international relations,” he said.Guterres says the UN’s greatest achievement since 1945 is preventing a third world war. Yet respected analysts such as Fiona Hill believe it’s already begun. The UK and other democracies face some pressing questions. Will they meekly give in to Trump once again? Or will they fight to stop this renegade president and rogue states such as Russia and Israel dismantling the world’s best defence against global anarchy, forever wars and needless suffering?Will they fight to save the UN?

    Simon Tisdall is a Guardian columnist More

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    Hegseth falsely cited weapon shortages in halting shipments to Ukraine, Democrats say

    Pete Hegseth, the US defense secretary, unilaterally halted an agreed shipment of military aid to Ukraine due to baseless concerns that US stockpiles of weapons have run too low, it has been reported.A batch of air defense missiles and other precision munitions were due to be sent to Ukraine to aid it in its ongoing war with Russia, which launched a full-scale invasion of its neighbor in 2022. The aid was promised by the US during Joe Biden’s administration last year.But the Pentagon halted the shipment, with NBC reporting that a decision to do so was made solely by Hegseth, Donald Trump’s top defense official and a former Fox News weekend host who has previously come under pressure for sharing plans of a military strike in two group chats on the messaging app Signal, one of which accidentally included a journalist.Hegseth has now halted US military supplies to Ukraine on three occasions, NBC said, with the latest intervention purportedly coming due to concerns that the US’s own weapons stockpile is running too low.When the president was asked about the pause in shipments to Ukraine by a reporter on Thursday, he claimed that it was necessary because “Biden emptied out our whole country, giving them weapons, and we have to make sure we have enough for ourselves”.A White House spokesperson said last week that the decision “was made to put America’s interests first following a [defense department] review of our nation’s military support and assistance to other countries across the globe. The strength of the United States armed forces remains unquestioned – just ask Iran.”“This capability review,” Pentagon spokesperson Sean Parnell told reporters on Wednesday, “is being conducted to ensure US military aid aligns with our defense priorities.”“We see this as a commonsense, pragmatic step towards having a framework to evaluate what munitions are sent and where,” Parnell added. He also seemed to confirm that there is no current shortage of arms for US forces. “Let it be known that our military has everything that it needs to conduct any mission, anywhere, anytime, all around the world,” he said.The decision surprised members of Congress, as well as Ukraine and the US’s European allies. Democrats said there is no evidence that American weapon stocks are in decline.“We are not at any lower point, stockpile-wise, than we’ve been in the three-and-a-half years of the Ukraine conflict,” Adam Smith, a Democrat and ranking member of the House armed services committee, told NBC. Smith said that his staff had “seen the numbers” on weapon supplies and that there is no justification to suspend aid to Ukraine.The weapons being delayed include dozens of Patriot interceptor missiles that can defend against Russian missile attacks, as well as howitzers and other missile systems.skip past newsletter promotionafter newsletter promotionRussia has recently stepped up its bombardment of Ukrainian cities, using missiles and drones to wreak havoc and terror among Ukrainian civilians. The delay in getting help to fend off these attacks is “painful”, a senior Ukrainian lawmaker said last week.“This decision is certainly very unpleasant for us,” said Fedir Venislavskyi, a member of the Ukrainian parliament’s defense committee, according to Reuters.“It’s painful, and against the background of the terrorist attacks which Russia commits against Ukraine.”The Department of Defense did not reply to a request for comment on the aid pause. More