Trump poised to offer Saudi Arabia over $130b arms package, sources say, World News
WASHINGTON/RIYADH — The United States is poised to offer Saudi Arabia an arms package worth well over US$100 billion (S$130 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 finalise a defence pact with Riyadh as part of a broad deal that envisioned Saudi Arabia normalising ties with Israel.
The Biden proposal offered access to more advanced US 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 US Defence official said: "Our defence relationship with the Kingdom of Saudi Arabia is stronger than ever under President Trump's leadership. Maintaining our security co-operation remains an important component of this partnership and we will continue to work with Saudi Arabia to address their defence needs."
In his first term, Trump celebrated weapons sales to Saudi Arabia as good for US 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 US defence 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.
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 US$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 defence companies are considering travelling to the region as a part of the delegation, three of the sources said.
The US has long supplied Saudi Arabia with weapons. In 2017, Trump proposed approximately US$110 billion of sales to the kingdom.
As of 2018, only US$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 US 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.
The United States guarantees that its close ally Israel receives more advanced American weapons than Arab states, giving it what is labelled a Qualitative Military Edge (QME) over its neighbours.
Israel has now owned F-35s for nine years, building multiple squadrons.
ALSO READ: Saudi Arabia plans $810b in new US investment, trade over 4 years
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
34 minutes ago
- Straits Times
Trump says China will supply rare earths, US to allow students
FILE PHOTO: U.S. President Donald Trump gestures while he poses for a picture at the presidential box at the Kennedy Center, in Washington, D.C., U.S., March 17, 2025. REUTERS/Carlos Barria/File Photo Trump says China will supply rare earths, US to allow students WASHINGTON - President Donald Trump said on Wednesday the U.S. deal with China is done, with Beijing to supply magnets and rare earth minerals while the U.S. will allow Chinese students in its colleges and universities. "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!" Trump wrote on Truth Social without elaborating. Trump said the deal is subject to final approval by him and President Xi Jinping. "FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!)," Trump said. U.S. and Chinese officials said on Tuesday they had agreed on a framework to get their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade tensions. At the end of two days of intense negotiations in London, U.S. Commerce Secretary Howard Lutnick told reporters the framework deal puts "meat on the bones" of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs that had reached crushing triple-digit levels The Geneva deal had faltered over China's curbs on critical minerals exports, prompting the Trump administration to respond with export controls of its own preventing shipments of semiconductor design software, aircraft and other goods to China. Trump's shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
42 minutes ago
- Business Times
Haidilao operator Super Hi swings to US$11.9 million Q1 profit on forex gains, delivery growth
[SINGAPORE] Super Hi International, the operator of Haidilao's international business, posted a net profit of US$11.9 million for the first quarter ended Mar 31, reversing a net loss of US$4.5 million in the same period the year before. The turnaround was mainly driven by a US$20.4 million reduction in net foreign exchange losses due to currency fluctuations – particularly the revaluation of local currencies against the US dollar – said Super Hi in a press release on May 21. Earnings per share for the company – which is listed on both the Nasdaq and Stock Exchange of Hong Kong – stood at US$0.02, up from a loss of US$0.01 a year earlier. Revenue rose 5.4 per cent year on year (yoy) to US$197.8 million, from US$187.6 million. This was led by a 37.9 per cent increase in revenue from the delivery business to US$4 million, up from US$2.9 million from the year-ago period. Super Hi attributed the jump in delivery revenue to sustained investment and marketing efforts in the delivery business, as well as the expansion of its delivery network alongside growing restaurant coverage. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Revenue from restaurant operations grew by 4.5 per cent to US$188.4 million, while that from its other business, including retail food products, rose 22.7 per cent to US$5.4 million. Super Hi did not disclose the performance of its Singapore operations, but noted that average daily revenue per restaurant in South-east Asia fell 3.2 per cent to US$15,300. In contrast, average daily revenue rose by 19.9 per cent in East Asia to US$19,300, and by 3.3 per cent in North America to US$22,200. Its income from operation fell 33.9 per cent yoy to US$8.2 million, while income from operation margin narrowed to 4.1 per cent from 6.6 per cent. The decline was mainly due to higher spending on customer and employee benefit initiatives; increased outsourcing and maintenance costs from network expansion; and higher short-term lease payments. Total guest visits rose 6.8 per cent yoy to 7.8 million. The group also opened four new Haidilao outlets and closed three underperforming ones during the quarter. As at end-March, it operated 123 restaurants outside China, up 3 per cent from 119 a year earlier, with South-east Asia remaining its largest market (73 outlets). Chief executive and executive director Yang Lijuan said Super Hi focused on refining operational strategies during the first quarter of the year, to boost customer value and loyalty through pricing adjustments, improved portion value and more diverse dining formats. Yang said the group will continue advancing its 'Pomegranate Plan', launched in 2024 to drive product diversification. The initiative aims to grow new dining formats such as fast food and halal hotpot, supported by specialised teams in operations, product development and marketing.
Straits Times
an hour ago
- Straits Times
At G-7 summit, S. Korea's President Lee faces delicate balance in US-China rivalry
South Korea's new President Lee Jae-myung and his wife Kim Hye-kyung (left) at the Seoul National Cemetery on June 6. PHOTO: REUTERS – As South Korea's new President Lee Jae-myung gears up for his international diplomacy debut at the Group of Seven (G-7) summit next week, all eyes are on whether he will be made to pick sides in the Sino-American rivalry. Mr Lee has acknowledged that the South Korea-US alliance remains the foundation of South Korea's diplomacy and security, and has pledged to strengthen the alliance along with the trilateral partnership with Japan. But he has also said South Korea should not be made to choose between the United States and China and 'put all our eggs in one basket'. Mr Lee was elected with a 49.42 per cent mandate in a snap election on June 3 after his predecessor Yoon Suk Yeol's failed martial law bid saw the former leader deposed by the country's Constitutional Court. Mr Lee's win under the liberal flag, which traditionally prioritises relations with China and engagement with North Korea, has Washington watching his foreign policy directions closely, said Dr Lee Seong-hyon, a senior fellow at the Washington-based George H.W. Bush Foundation for US-China Relations. The previous conservative administration under Yoon had antagonised Beijing by openly taking sides with the US, and also seeding rife speculation of Chinese espionage and interference in South Korean domestic politics. During his election campaign, Mr Lee had taken a more centrist stance by repeatedly emphasising a non-committal 'pragmatic diplomacy' to maximise South Korea's national interests. Amid growing rivalry between the two superpowers, however, Mr Lee's vision, which requires a delicate balancing act between its biggest security ally, the US, and its largest trading partner, China, will likely be put to the test. US Defence Secretary Pete Hegseth had earlier cautioned allies against playing both sides by 'seeking both economic cooperation with China and defence cooperation with the United States', during his speech at the Shangri-La Dialogue, an annual defence and security forum, on May 31 in Singapore. Mr Hegseth had also urged allies to increase their defence spending as regional deterrence against China. Seoul's share of the defence cost-sharing for US troops stationed in South Korea has been a major bugbear of US President Donald Trump, who has said that 'money machine' South Korea can afford to pay much more. Recent leaked plans about the possibility of the US redeploying its forces stationed in South Korea to other parts of the Pacific to exercise 'strategic flexibility' in its plans to contain China, also called into question the commitment of US security in the region. South Korea's participation as an observing country at the G-7 summit on June 15-17 in Vancouver is, thus, seen as important. Issues related to China, Russia and North Korea are expected to feature high on the meeting agenda. Besides the US, other members of the political and economic forum are Canada, France, Germany, Italy, Japan and the United Kingdom. Seoul is also pushing hard for a face-to-face meeting between Mr Lee and Mr Trump on the sidelines of the meeting to ride on the momentum of the first phone call between the two leaders that took place on June 6. The 20-minute courtesy call had ended with an agreement to meet in person at the earliest possible opportunity for more in-depth talks. The call had taken place later than usual – three days after Mr Lee was elected – causing concern when it had not happened. Past South Korean presidents had traditionally spoken to their biggest ally either on the day of their election or the day after. A cryptic congratulatory message issued by the White House after the election had affirmed the 'ironclad alliance' between the US and South Korea , before going on to express concern over 'Chinese interference and influence in democracies around the world'. That had fuelled speculation that the message was a hint for the new Lee administration to distance itself from Beijing. While Washington does not expect Mr Lee's administration to 'diverge significantly from the established US-South Korea alliance framework', it will, nevertheless, be keenly watching any potential policy reversals, such as weakening ties with Japan while gravitating towards China and resuming inter-Korean engagement, Dr Lee told The Straits Times. Research fellow Lee Dong-gyu, from the Asan Institute for Policy Studies in Seoul, said the broaching of the idea of a US troop drawdown could be a diplomatic signal to South Korea to step up and play 'an augmented role' to contain China. 'But if the new government under Mr Lee pursues a revitalisation of South Korea-China relations, then it may result in the erosion of the US' containment efforts,' he said. While it is clear that President Lee's priority is in forging ties with Mr Trump and to iron out tariff negotiations before the July 9 deadline, rising tensions over Chinese-built structures in the South Korea-China Provisional Maritime Zone in the West Sea will also be an immediate test of his diplomacy tight-rope act, said international politics professor Mason Richey from Hankuk University of Foreign Studies. He added that Seoul needs to be prepared to respond strategically, and 'to be clear with China that even though they are economic partners, South Korea will not be easily bullied'. After his first phone call with Chinese President Xi Jinping on June 10, Mr Lee has called China an important partner to South Korea 'in all aspects, including economy and security' and that he looks forward to developing relations between Seoul and Beijing. Mr Lee has also asked China to play a constructive role for the denuclearisation of the Korean peninsula, to which Mr Xi replied that promoting peace and stability on the peninsula was a matter of mutual interest to both South Korea and China. Carnegie Mellon Institute for Strategy and Technology's non-resident fellow, Dr Troy Stangarone, told ST that while the new administration's repairing of relations with China is a priority after the deterioration of ties under the previous Yoon administration, it will need to 'take a realistic view of the relationship'. He believes that Mr Lee would likely have a bit more time before being made to pick sides between the US and China at the G-7 summit, as South Korea is ultimately not a member country but just an observer. However, he warns that 'geostrategic shifts and US-China rivalry may create limits to improving relations with China'. 'The Lee administration should focus its efforts on maintaining good economic ties while also working to bring China back as a constructive partner for dealing with the North Korean nuclear issue,' he said. Wendy Teo is The Straits Times' South Korea correspondent based in Seoul. She covers issues concerning the two Koreas. Join ST's Telegram channel and get the latest breaking news delivered to you.
