FINANCIAL TIMES
-President Donald Trump has significantly reduced the White House National Security Council by firing several officials, placing others on administrative leave, and ordering many secondees to return to their home agencies. The NSC, temporarily run by secretary of state Marco Rubio, retained some staff, mostly senior directors, while eliminating dozens of positions in the office. The move, described as a "liquidation," comes three weeks after the president fired Mike Waltz as his first national security adviser. The officials who lost their positions were notified on Friday afternoon. It was unclear if Alex Wong, the deputy national security adviser, had been dismissed. Laura Loomer, a right-wing activist who helped persuade Trump to fire Waltz, has also been gunning for Wong, who is well-regarded with hawkish views on China. Ivan Kanapathy, senior director for Asia, remained but his entire team, including his China staff, had been let go.
-In an editorial, former Israeli Prime Minister Ehud Barak Israel warns that Israel must decide to either end the war by bringing all hostages home, or launch a full-scale assault on Gaza for a "total victory" over Hamas. The government also has to decide whether to align with far-right ministers like Itamar Ben-Gvir and Bezalel Smotrich, who advocate for Gaza's reoccupation and resettlement, or turn towards the international community, US President Donald Trump's vision of regional peace and international law. Trump has warned Israeli Prime Minister Benjamin Netanyahu that he will be abandoned if the war continues. France, Britain, and Canada have demanded Israel renew humanitarian aid, and the UK has suspended talks on a bilateral trade deal. A deal would benefit Israel by bringing back remaining hostages, ending the fighting, and allowing Israel to integrate into a new regional architecture.
-Donald Trump has announced plans to impose a 50% tariff on imports from the European Union (EU) starting on June 1, 2025. The US president accused the EU of unfair trade practices and said negotiations over a new deal were failing. The EU responded by stating it would defend its interests and was committed to securing a deal that works for both parties. Trump's comments escalated the stand-off with the EU, just two weeks after the US agreed with China to slash tariffs in a pact that comforted global investors. Trump said he had set the deal at 50% and did not know if the EU could avoid the new levy, although he would consider a delay if European companies committed to moving manufacturing to the US.
- Donald Trump has endorsed Nippon Steel's $15bn deal to buy US Steel, a move that reversal of his opposition to a cross-border transaction blocked by Joe Biden on national security grounds. The partnership will create at least 70,000 jobs and add $14 billion to the US economy, with the bulk of the additional investment expected to be made within the next 14 months. Trump's post was considered "tacit approval" by the administration for the $15B takeover they agreed at the end of 2023. The US company will remain headquartered in Pittsburgh, Pennsylvania, where it has been based for over a century. Trump opposed Nippon Steel's planned takeover of US Steel in last year's presidential election campaign, stating it would be a "horrible thing" if sold to a foreign entity. More meetings are needed to formalize the president's approval.
- British security officials are investigating whether Russia may be involved in three arson attacks on properties connected to Prime Minister Sir Keir Starmer. The attacks occurred earlier this month at Starmer's family home in Kentish Town, north London, along with a car and a previously owned residential property. Two Ukrainian men and a Romanian national have been charged with conspiracy to commit arson with intent to endanger life. UK officials are investigating whether actors in Russia may have recruited the trio accused of starting the fires. Prosecutor Sarah Przybylska has said the alleged conspiracy is currently "unexplained", while counterterrorism police are keeping an open mind about motive.
- The EU is content with the economic status quo established by Boris Johnson's Trade and Cooperation Agreement of December 2020, and has viewed the default option as perfectly acceptable. This has allowed EU negotiators to hold London hostage over its desire for a deal on agriculture, insisting on a 12-year extension to current fishing quotas in return. Neither of the UK's key "asks" - access to the EU's defense procurement schemes or a deal on agricultural trade - were formally signed off. Brexit has not made Britain more prosperous, but both sides were wary of the optics of failing to agree anything. Geopolitics was a major issue in the bilateral talks, and failing to agree a security deal due to a row over fishing would not have been a good look. The UK government's pragmatism came as a shock after years of posturing and ridiculous claims that "no deal is better than a bad deal." Although acutely conscious of the political incentives to set clear limits to its ambitions, it was also aware of the need to reduce trade frictions and secure a tighter security partnership.
- South Africa has proposed legislation to meet Elon Musk's conditions for offering his Starlink satellite internet service in his birth country, following Musk's refusal to comply with Black empowerment laws he called "openly racist". Following a meeting between President Cyril Ramaphosa and US President Donald Trump, Pretoria loosened affirmative action laws requiring foreign telecom investors to sell 30% of equity in their local entity to historically disadvantaged groups. Communications minister Solly Malatsi proposed companies invest in "equity equivalence programs" such as signing up local suppliers, creating jobs, or financing small businesses. The proposal will be open to public comment for 30 days.
-Spain is the last major holdout on a NATO plan to announce that the entire alliance will spend 5% of GDP on defense by 2032, a target demanded by US President Donald Trump. Madrid is under pressure to commit to the target and enable NATO to announce that all its members will meet the pledge at a meeting of its defense ministers in Brussels on June 5. Diplomats are straining to secure unanimous NATO backing ahead of the alliance's leaders' summit in The Hague on June 24, where many hope Trump will accept the promises of increased spending and reaffirm US security guarantees to Europe. Spain has yet to confirm its support for the 5% pledge, potentially blocking a unanimous statement and undermining alliance unity.
NEW YORK TIMES
-Harvard University has been embroiled in a confrontation with the Trump administration, following a demand for data on international students. The Department of Homeland Security's secretary, Kristin Noem, sent a letter to Harvard requesting coursework and information on student visa holders involved in misconduct or illegal activity. Harvard rebuffed some of the request, and the Trump administration retaliated by stating that Harvard could no longer enroll any international students, who make up about one-fourth of its total enrollment. The government also expanded its request for records to include videos of international students involved in protests or illegal activities.
-The Trump administration has threatened to block Harvard from enrolling international students, potentially removing over a quarter of the university's student body and potentially impacting tuition revenue. The move, which was frozen within 24 hours by a federal judge, highlights the risk other universities face from an administration that has shown deep hostility towards higher education. N.Y.U., Johns Hopkins, Columbia, and Carnegie Mellon have even larger international student shares than Harvard. The share of international students studying at these colleges and across the United States has been growing for the past two decades due to rising incomes in countries like China and India.
-A federal judge has ordered the Trump administration to return a Guatemalan man, O.C.G., who was deported to Mexico despite fearing persecution. O.C.G., a gay man, is currently living in hiding in Guatemala, claiming he cannot be gay there. Judge Brian E. Murphy criticized the government for initially claiming O.C.G. was not afraid of being sent to Mexico, where he claimed he was raped and held captive. He also found that O.C.G. was likely to prove that his removal lacked due process. The ruling criticized the government's initial claim of O.C.G.'s fear of persecution.
-A federal judge has stopped the Trump administration's attempts to block international students from attending Harvard University, the nation's oldest and prestigious institution. Harvard sued the administration less than 24 hours after the Department of Homeland Security moved to bar international students. The Boston judge, Allison D. Burroughs, issued a temporary restraining order against the federal edict, agreeing that Harvard had shown that its implementation would cause immediate and irreparable injury. Harvard's response signified a dramatic escalation of the battle between the administration and Harvard, as it feared destabilizing the school.
-A bipartisan group of senators arrived in Ottawa to stabilize the US-Canada relationship, aiming to mend a once-tight alliance that President Trump has tested with tariffs and tough talk. The group, consisting of four Democrats and a lone Republican, met with Prime Minister Mark Carney and senior Canadian officials to defuse tension that has built up in recent months. Senator Jeanne Shaheen of New Hampshire, the top Democrat on the Foreign Relations Committee, emphasized the importance of Canada to both states and the US and Canadian relationship to both countries. The delegation included fellow Democrats Tim Kaine, Amy Klobuchar, Peter Welch, and Kevin Cramer, the sole Republican.
-President Trump has threatened to impose a 50% tariff on all goods coming into the United States from the European Union starting next weekend, the latest zig in a series of trade policy blunders that have been confusing financial markets, businesses, and political leaders worldwide. The economic fallout on the American, European, and global economies will be severe if Trump follows through. Carsten Brzeski, chief Eurozone economist at ING, warned that such tariff levels could lead to higher inflation and slower growth in the United States, pushing Europe into a recession, and global growth falling. Julian Hinz, a trade researcher at the Kiel Institute for the World Economy, calculated that U.S. economic growth would drop 1.5%.
-Marco Rubio, the secretary of state and national security adviser, has announced a significant restructuring of the National Security Council, reducing its staff size by at least half. The downsizing is due to President Trump's preference for a style of foreign policy debate, where advisers follow the president's desired outcomes and comply with them. The council, a coordinating body across departments, guides the president and his top aides on key policy decisions. Some National Security Council officials from other agencies are returning to their original offices, while others are placed on administrative leave. Some teams will be gutted, while others will be collapsed and folded into others. Some teams will cease to exist. The downsizing is expected to help Trump conduct foreign policy debates in his preferred style.
-China's logistics machine in Ho Chi Minh City, Vietnam, has been a significant source of employment for workers packing cosmetics, clothes, and shoes for Shein, a Chinese fast-fashion retailer. Recruiters are also interviewing candidates outside the industrial park owned by Alibaba's supply chain arm. This activity, powered by Chinese money, has made Vietnam a thriving destination for companies seeking alternatives to China's factories. However, as President Trump's trade war disrupts supply chains, China's role is becoming a significant obstacle for Vietnam in avoiding a 46% tariff.
-Two commercial flights were diverted from Ronald Reagan National Airport on May 1 due to a communications glitch between an Army Black Hawk helicopter and Pentagon air traffic controllers. The helicopter attempted to land on the helipad near the Pentagon but was asked to fly around and land a short while later. The request came from air traffic controllers at the Pentagon, who lost audio and visual contact with the helicopter just moments before it was set to land. The Federal Aviation Administration and the National Transportation Safety Board are also investigating the incident. The Army and the Associated Press reported details of the Army review.
-Iran and the US made some progress during talks in Rome over the future of Iran's nuclear program, according to an intermediary. The talks, which took place for less than three hours, had "some but not conclusive progress," according to Oman's foreign minister, Badr al-Busaidi. The main issue at stake was Washington's demand that Iran halt all nuclear enrichment and dismantle all of its centrifuges. Iran has insisted that it will not give up the right to nuclear enrichment at lower levels as guaranteed by the Nuclear Nonproliferation Treaty. President Trump's Middle East envoy, Steve Witkoff, is trying to find a formula that works, and the fact that the talks did not break up in acrimony was viewed as positive. Iran's foreign minister, Abbas Araghchi, will need to consult with Iran's leadership, including Supreme Leader Ali Khamenei, over how to proceed. Araghchi said that the negotiations were one of the most professional stages he has experienced so far, and that there is now a clearer understanding of the American side's positions.
-A knife attack at Hamburg's central train station injured 17 people, with four in critical condition. The police believe a 39-year-old woman acted alone in the attack, but the investigation is ongoing. The motive is still being investigated, but the police believe the woman might have been in a state of mental distress. Hamburg's mayor, Peter Tschentscher, confirmed that the perpetrator is in custody. The attack occurred at the station, and all victims have been hospitalized. The police are still investigating a possible motive, but the woman surrendered without resistance upon arrival.
NEW YORK POST
-Cryptocurrency investor John Woeltz, a Kentucky-based cryptocurrency investor, is suspected of torturing an Italian tourist with a chainsaw in a weeks-long extortion attempt to gain the password for his accounts at a Manhattan apartment. The 28-year-old man broke out of the SoHo house of horrors and ran to a police officer, who said he had been held prisoner for more than two weeks. Cops discovered multiple Polaroid photos showing the tourist being tied up with electrical wire and tortured, including one of him bound to a chair with a gun pointed at his head. Woeltz was taken into custody and charged with two counts of second-degree assault, first-degree kidnapping, first-degree, first-degree unlawful imprisonment, and criminal possession of a weapon. The nightmare erupted from a dispute over cryptocurrency, in which the suspect allegedly tried to extort millions of dollars from the man by unleashing a litany of horrific tortures.
-Boeing has agreed to pay over $1B but avoided prosecution over two 737MAX plane crashes that killed 346 people. The non-prosecution agreement allows the aerospace giant to avoid being branded a convicted felon and was criticized by many families who lost relatives in the crashes and had pressed prosecutors to take Boeing to trial. The Justice Department expects to file the written agreement with Boeing by the end of next week, and Boeing will no longer face oversight by an independent monitor under the agreement.