&w=3840&q=100)
Ahead of May visit, Trump poised to offer Saudi Arabia over $100 billion arms package
The US is poised to offer Saudi Arabia an arms package worth well over $100 billion, according to a report, citing six sources with direct knowledge of the issue. The proposal was being lined up for announcement during President Trump's visit to the kingdom in May read more
The United States is poised to offer Saudi Arabia an arms package worth well over $100 billion, six sources with direct knowledge of the issue told Reuters, saying the proposal was being lined up for announcement during US President Donald Trump's visit to the kingdom in May.
The offered package comes after the administration of former President Joe Biden unsuccessfully tried to finalize a defense pact with Riyadh as part of a broad deal that envisioned Saudi Arabia normalising ties with Israel.
STORY CONTINUES BELOW THIS AD
The Biden proposal offered access to more advanced U.S. weaponry in return for halting Chinese arms purchases and restricting Beijing's investment in the country. Reuters could not establish if the Trump administration's proposal includes similar requirements.
The White House and Saudi government communications office did not immediately respond to requests for comment.
A U.S. Defense official said: 'Our defense relationship with the Kingdom of Saudi Arabia is stronger than ever under President Trump's leadership. Maintaining our security cooperation remains an important component of this partnership and we will continue to work with Saudi Arabia to address their defense needs.'
In his first term, Trump celebrated weapons sales to Saudi Arabia as good for U.S. jobs.
Lockheed Martin Corp could supply a range of advanced weapons systems including C-130 transport aircraft, two of the sources said. One source said Lockheed would also supply missiles and radars.
RTX Corp, formerly known as Raytheon Technologies, is also expected to play a significant role in the package, which will include supplies from other major U.S. defense contractors such as Boeing Co, Northrop Grumman Corp and General Atomics, said four of the sources.
All the sources declined to be named due to the sensitivity of the matter.
STORY CONTINUES BELOW THIS AD
RTX, Northrop and General Atomics declined to comment. Boeing did not immediately respond to a request for comment. A Lockheed Martin spokesperson said foreign military sales are government-to-government transactions. Questions about sales to foreign governments are best addressed by the US government.
Reuters could not immediately establish how many of the deals on offer were new. Many have been in the works for some time, two of the sources said. For example, the kingdom first requested information about General Atomics' drones in 2018, they said. Over the past 12 months, a deal for $20 billion of General Atomics' MQ-9B SeaGuardian-style drones and other aircraft came into focus, according to one of the sources.
Several executives from defense companies are considering traveling to the region as a part of the delegation, three of the sources said.
The U.S. has long supplied Saudi Arabia with weapons. In 2017, Trump proposed approximately $110 billion of sales to the kingdom.
STORY CONTINUES BELOW THIS AD
As of 2018, only $14.5 billion of sales had been initiated and Congress began to question the deals in light of the murder of Saudi journalist Jamal Khashoggi.
In 2021, under Biden, Congress imposed a ban on sales of offensive weapons to Saudi Arabia over the Khashoggi killing and to pressure the kingdom to wind down its Yemen war, which had inflicted heavy civilian casualties.
Under U.S. law, major international weapons deals must be reviewed by members of Congress before they are finalised.
The Biden administration began to soften its stance on Saudi Arabia in 2022 after Russia's invasion of Ukraine impacted global oil supplies. The ban on offensive weapons sales was lifted in 2024, as Washington worked more closely with Riyadh in the aftermath of Hamas' Oct. 7 attack to devise a plan for post-war Gaza.
A potential deal for Lockheed's F-35 jets, which the kingdom has been reportedly interested in for years, is expected to be discussed, three of the sources said, while downplaying the chances for an F-35 deal being signed during the trip.
STORY CONTINUES BELOW THIS AD
The United States guarantees that its close ally Israel receives more advanced American weapons than Arab states, giving it what is labeled a 'Qualitative Military Edge' (QME) over its neighbors.
Israel has now owned F-35s for nine years, building multiple squadrons.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Economic Times
8 minutes ago
- Economic Times
Market Wrap: D-Street ends higher as RBI easing, U.S. jobs data fuel rally; Sensex adds 256 pts, Nifty above 25,100
Synopsis Indian benchmark indices ended Monday's session in the green, with the banking index surging to a record high during the day, lifted by the Reserve Bank of India's surprise policy easing, upbeat U.S. jobs data, and progress in U.S.-India trade talks. Indian benchmark indices ended Monday's session in the green, with the banking index surging to a record high during the day, lifted by the Reserve Bank of India's surprise policy easing, upbeat U.S. jobs data, and progress in U.S.-India trade talks. ADVERTISEMENT The BSE Sensex jumped 256.22 points, or 0.31%, to 82,445.21, while the NSE Nifty rose 100.15 points, or 0.40%, to close at 25,103.20. (You can now subscribe to our ETMarkets WhatsApp channel) SensexRBI easingNiftyU.S. jobs databanking index Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY Business News › Markets › Stocks › News › Market Wrap: D-Street ends higher as RBI easing, U.S. jobs data fuel rally; Sensex adds 256 pts, Nifty above 25,100


Time of India
8 minutes ago
- Time of India
Auto companies 'in full panic' over rare-earths bottleneck
Frank Eckard, CEO of a German magnet maker, has been fielding a flood of calls in recent weeks. Exasperated automakers and parts suppliers have been desperate to find alternative sources of magnets, which are in short supply due to Chinese export curbs. Some told Eckard their factories could be idled by mid-July without backup magnet supplies. "The whole car industry is in full panic," said Eckard, CEO of Magnosphere, based in Troisdorf, Germany. "They are willing to pay any price." Car executives have once again been driven into their war rooms, concerned that China's tight export controls on rare-earth magnets - crucially needed to make cars - could cripple production. U.S. President Donald Trump said Friday that Chinese President Xi Jinping agreed to let rare earths minerals and magnets flow to the United States. A U.S. trade team is scheduled to meet Chinese counterparts for talks in London on Monday. The industry worries that the rare-earths situation could cascade into the third massive supply chain shock in five years. A semiconductor shortage wiped away millions of cars from automakers' production plans, from roughly 2021 to 2023. Before that, the coronavirus pandemic in 2020 shut factories for weeks. Those crises prompted the industry to fortify supply chain strategies. Executives have prioritized backup supplies for key components and reexamined the use of just-in-time inventories, which save money but can leave them without stockpiles when a crisis unfurls. Judging from Eckard's inbound calls, though, "nobody has learned from the past," he said. This time, as the rare-earths bottleneck tightens, the industry has few good options, given the extent to which China dominates the market. The fate of automakers' assembly lines has been left to a small team of Chinese bureaucrats as it reviews hundreds of applications for export permits. Several European auto-supplier plants have already shut down, with more outages coming, said the region's auto supplier association, CLEPA. "Sooner or later, this will confront everyone," said CLEPA Secretary-General Benjamin Krieger. Cars today use rare-earths-based motors in dozens of components - side mirrors, stereo speakers, oil pumps, windshield wipers, and sensors for fuel leakage and braking sensors. China controls up to 70% of global rare-earths mining, 85% of refining capacity and about 90% of rare-earths metal alloy and magnet production, consultancy AlixPartners said. The average electric vehicle uses about .5 kg (just over 1 pound) of rare earths elements, and a fossil-fuel car uses just half that, according to the International Energy Agency. China has clamped down before, including in a 2010 dispute with Japan, during which it curbed rare-earths exports. Japan had to find alternative suppliers, and by 2018, China accounted for only 58% of its rare earth imports. "China has had a rare-earth card to play whenever they wanted to," said Mark Smith, CEO of mining company NioCorp, which is developing a rare-earth project in Nebraska scheduled to start production within three years. Across the industry, automakers have been trying to wean off China for rare-earth magnets, or even develop magnets that do not need those elements. But most efforts are years away from the scale needed. "It's really about identifying ... and finding alternative solutions" outside China, Joseph Palmieri, head of supply chain management at supplier Aptiv, said at a conference in Detroit last week. Automakers including General Motors and BMW and major suppliers such as ZF and BorgWarner are working on motors with low-to-zero rare-earth content, but few have managed to scale production enough to cut costs. The EU has launched initiatives including the Critical Raw Materials Act to boost European rare-earth sources. But it has not moved fast enough, said Noah Barkin, a senior advisor at Rhodium Group, a China-focused U.S. think tank. Even players that have developed marketable products struggle to compete with Chinese producers on price. David Bender, co-head of German metal specialist Heraeus' magnet recycling business, said it is only operating at 1% capacity and will have to close next year if sales do not increase. Minneapolis-based Niron has developed rare-earth free magnets and has raised more than $250 million from investors including GM, Stellantis and auto supplier Magna. "We've seen a step change in interest from investors and customers" since China's export controls took effect, CEO Jonathan Rowntree said. It is planning a $1 billion plant scheduled to start production in 2029. England-based Warwick Acoustics has developed rare-earth-free speakers expected to appear in a luxury car later this year. CEO Mike Grant said the company has been in talks with another dozen automakers, although the speakers are not expected to be available in mainstream models for about five years. As auto companies scout longer-term solutions, they are left scrambling to avert imminent factory shutdowns. Automakers must figure out which of their suppliers - and smaller ones a few links up the supply chain - need export permits. Mercedes-Benz, for example, is talking to suppliers about building rare-earth stockpiles. Analysts said the constraints could force automakers to make cars without certain parts and park them until they become available, as GM and others did during the semiconductor crisis. Automakers' reliance on China does not end with rare earth elements. A 2024 European Commission report said China controls more than 50% of global supply of 19 key raw materials, including manganese, graphite and aluminum. Andy Leyland, co-founder of supply chain specialist SC Insights, said any of those elements could be used as leverage by China. "This just is a warning shot," he said.


Mint
11 minutes ago
- Mint
UK to end ban on retail investors buying crypto exchange-traded notes
(Refiles to remove extraneous word in the headline; no change to text) LONDON (Reuters) -Britain's financial regulator is to remove a ban on consumers buying crypto exchange-traded notes (ETNs), ditching its previous position of wanting to keep them out of the hands of retail investors. The Financial Conduct Authority said on Friday that allowing retail investors to buy ETNs would support growth and competitiveness, in the latest sign that the UK is shifting its approach to crypto as the government seeks to grow the economy and support a digital assets industry. Last year the FCA had approved the launch of crypto ETNs for professional traders but banned retail investors from access, calling the products "ill-suited" because of "the harm they pose". "We want to rebalance our approach to risk and lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them given they could lose all their money," David Geale, executive director of payments and digital assets at the FCA, said in a statement on Friday. The proposal will now go out for consultation. Britain in April published draft laws for bringing cryptocurrencies under compulsory regulation for the first time, aligning it with the United States' approach, rather than the European Union, which has built rules tailored to the industry. To be sold to individual consumers, the ETNs will need to be traded on an FCA-approved investment exchange, the regulator said. A ban on retail investors trading cryptoasset derivatives would remain, the watchdog added. (Reporting by Tommy Reggiori Wilkes. Editing by Jane Merriman)