Heading to NATO summit, Trump casts doubt on mutual defence
THE HAGUE: President Donald Trump cast doubt on Tuesday (Jun 24) over the United States' commitment to defending its NATO partners, suggesting there were "numerous" definitions to the cornerstone of the alliance's mutual defence clause.
Trump was speaking to reporters en route to a NATO summit in the Netherlands, a two-day gathering which is intended to signal to Russian President Vladimir Putin that NATO is united, despite Trump's past criticism, and determined to expand and upgrade its defences to deter any attack from Moscow.
However, pressed by reporters on Air Force One over whether he remained committed to mutual defence among allies as set out by NATO's Article 5, Trump responded:
"I'm committed to saving lives. I'm committed to life and safety. And I'm going to give you an exact definition when I get there."
NATO'S RUTTE HAILS TRUMP'S "DECISIVE ACTION IN IRAN"
Trump also posted a screenshot of a message from NATO Secretary General Mark Rutte congratulating him on his "decisive action in Iran" and getting all NATO allies to agree to spend more on defence.
"Europe is going to pay in a BIG way as they should, and it will be your win," Rutte's message read, indicating the effort he has put into keeping on the right side of Trump and ensuring the summit is a success.
Trump singled out Spain for criticism after Spanish Prime Minister Pedro Sanchez declared Madrid did not need to meet the new spending target.
The summit and its final statement will be focused on heeding Trump's call to spend 5 per cent of GDP on defence - a significant jump from the current 2 per cent goal. It is to be achieved both by spending more on military items and by including broader security-related spending in the new target.
TRUMP SET TO MEET ZELENSKYY
Trump is expected to meet Ukraine's President Volodymyr Zelenskyy for talks during the summit. Zelenskyy has said he wants to discuss substantial purchases of weaponry, including Patriot missile defence systems, as well as sanctions and other ways to put pressure on Putin.
Zelenskyy warned European NATO members on Tuesday that they risked being attacked by Russia if it was not defeated in Ukraine.
"Russia is even planning new military operations on NATO territory – meaning your countries," Zelenskyy told a defence industry event on the sidelines of the summit, hours after Russian missiles killed at least 17 people in southeast Ukraine.
Zelenskyy said it was essential that Ukraine lead in drone technology, which has shaped the battlefield and developed at a breathtaking pace in the 40 months the war has lasted so far.
The Kremlin accused NATO of being on a path of rampant militarisation and portraying Russia as a "fiend of hell" in order to justify its big increase in defence spending.
Russia has cited its neighbour's desire to join the US-led transatlantic defence pact as one of the reasons why it invaded Ukraine in 2022.
NATO was founded by 12 Western countries in 1949 to resist the threat from the communist Soviet Union.
Russia denies any plan to attack the alliance, which now boasts 32 members, but Kremlin spokesman Dmitry Peskov said it was "largely a wasted effort" to assure the grouping of this because it was determined to demonise Russia.
"It is an alliance created for confrontation ... It is not an instrument of peace and stability," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AsiaOne
an hour ago
- AsiaOne
Trump tells Congress that Iran had nuclear weapons programme, contradicting US spy agencies, World News
WASHINGTON — US President Donald Trump told Congress this week that the Iranian sites bombed by the US housed a "nuclear weapons development programme," even though US spy agencies have said no such programme existed. Trump's claim raised questions whether US intelligence backed up his decision to order the strikes on Iran on Sunday. The Republican president made the assertion in a letter dated Monday to House of Representatives Speaker Mike Johnson, a key ally, and it was posted on the White House's website. "United States forces conducted a precision strike against three nuclear facilities in Iran used by the Government of the Islamic Republic of Iran for its nuclear weapons development programme," Trump wrote. The most recent US assessment, presented to Congress in March by Director of National Intelligence Tulsi Gabbard, said Iran's supreme leader, Ayatollah Ali Khamenei, had not ordered the restarting of a nuclear-weapons effort shuttered in 2003. A source with access to US intelligence reports told Reuters last week that the March assessment had not changed. Iran insists that its nuclear programme is for peaceful uses. President George Bush justified the invasion of Iraq in 2003 by saying intelligence showed the country had weapons of mass destruction. This was later discredited and prompted a political backlash. Trump first cast doubt on intelligence about Iran's nuclear programme last week, when he repudiated the assessment that Gabbard delivered to Congress. "I don't care what she said. I think they were very close to having one," Trump told reporters, referring to a nuclear weapon. Gabbard herself on Friday disputed media accounts of her March testimony, saying on X that US intelligence showed Iran could make a nuclear weapon "in weeks to months" if it chose. According to unclassified US intelligence reports compiled before the strikes, Iran closed a nuclear weapons programme in 2003 — a conclusion shared by the UN nuclear watchdog — and has not mastered all of the technologies required. But Tehran does have the expertise to build a warhead at some point, according to the reports. The US attacked three Iranian nuclear sites — Natanz, Isfahan and Fordow — on Sunday. It hit deeply buried Fordow, where advanced centrifuges could produce low-enriched uranium for nuclear reactor fuel and highly enriched uranium for warheads, with "bunker busting" bombs. Trump and other top officials said the sites were obliterated. But a preliminary US intelligence assessment found the attack set back Tehran's programme by only months, three sources with knowledge of the matter told Reuters on Tuesday. A US official who read the assessment said it contained a number of caveats and a more refined report was expected in the coming days and weeks. [[nid:719454]]
Business Times
an hour ago
- Business Times
Gold prices flat as fragile Iran-Israel ceasefire tempers safe-haven demand
[BENGALURU] Gold prices held their ground on Wednesday (Jun 25) as a tentative ceasefire between Iran and Israel dampened safe-haven demand, though a weaker US dollar and bargain-hunting after bullion's decline in the previous session helped limit losses. Spot gold was unchanged at US$3,326.39 per ounce, as at 0042 GMT, after hitting an over two-week low on Tuesday. US gold futures edged 0.2 per cent higher to US$3,340. On Tuesday, Iran and Israel signalled a halt to their air war following US President Donald Trump's public reprimand over ceasefire violations announced earlier that day. The US dollar index hovered near a one-week low, making greenback-priced gold more attractive to overseas buyers. US consumer confidence unexpectedly deteriorated in June as households increasingly worried about job availability, another indication that labour market conditions were softening against the backdrop of rising economic uncertainty because of the Trump administration's tariffs. 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 Higher tariffs could begin raising inflation this summer, a period that will be key to Federal Reserve's consideration of possible rate cuts, Fed chair Jerome Powell told members of Congress on Tuesday. Federal Reserve Bank of Cleveland president Beth Hammack said on Tuesday that she sees no pressing need to cut interest rates when there's still a lot of uncertainty what trade tariffs will do to inflation, which is still above the central bank's target. Fed funds futures traders are now pricing in 61 basis points of rate cuts for 2025, with the first move expected to come in September. According to a report by the Official Monetary and Financial Institutions Forum, one in three central banks managing a combined US$5 trillion plan to increase exposure to gold over the next one-to-two years after stripping out those planning to decrease, the highest in at least five years. Elsewhere, spot silver was up 0.1 per cent at US$35.94 per ounce, platinum fell 0.2 per cent to US$1,313.88, while palladium was down 0.2 per cent at US$1,064.01. REUTERS
Business Times
an hour ago
- Business Times
Trump's chip tariff threat sparks pushback from auto industry to tech
[WASHINGTON] Blowback to US President Donald Trump's idea of tariffs on imported semiconductors is proving to be broad and deep, stretching from auto companies and boat makers to the technology industry and crypto enthusiasts, according to a review of more than 150 public comments on the proposal. The possible levy of up to 25 per cent has united rivals such as Tesla, General Motors and Ford Motor in voicing reservations. It's brought together industry lobbies from the Crypto Council for Innovation to the National Marine Manufacturers Association. Even Taiwan and the People's Republic of China are finding common cause, along with predictable parts of the tech sector, including chipmakers and wireless providers. The reason is that chips are now in almost everything: refrigerators and microwaves, tyre pressure sensors and navigation systems, electronic bidets and sonar equipment and, of course, smartphones and computers. Tariffs threaten to snarl supply lines and jack up costs for consumers. 'There's a large mismatch between the amount of chips we use in this country in various products and the supply created here in the US,' JoAnne Feeney, a partner and portfolio manager at Advisors Capital Management, said. 'Putting a tax on those imports will simply raise the cost, and that's not a good thing for consumers.' Case in point is the marine association, which warns that the impact would be felt by more than 1,300 manufacturers who face higher expenses for essentials such as propulsion technology, engines and GPS systems. 'These systems are not optional luxuries – they are fundamental to safety, function and performance,' the association said. 'Many components have no US equivalent or are only available from highly concentrated suppliers overseas.' 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 The boating sector's concerns were among comments from 154 stakeholders submitted to a Commerce Department review of whether to slap tariffs on chips as part of Trump's campaign to redraw global supply lines and boost domestic manufacturing. Predictable tech sources weighed in, including chipmakers Taiwan Semiconductor Manufacturing Company (TSMC) and Intel. But feedback also landed from a wide spectrum of sectors, along with trading partners such as Japan and Brazil. The companies, trade groups and individuals who commented on the chips investigation largely signalled support for the president's vision of deepening the US manufacturing base and expanding the American workforce. Yet most expressed concern over the potential consequences and urged making any levies that emerge as targeted as possible. Taken together, the filings point to unease across a range of industries about the economic fallout from targeting chips. Trump has so far brushed off many of those concerns and cited plans by a range of companies to invest in the US, including Taiwan-based TSMC's decision to boost its commitment to building plants near Phoenix. White House spokesperson Kush Desai said Trump remains committed to reshoring manufacturing critical to US national security. 'While the Commerce Department completes its Section 232 investigation, the administration is expanding domestic critical mineral production, slashing regulations, and pushing pro-growth policies,' Desai said. The Commerce Department did not respond to a request for comment. In its submission, TSMC highlighted plans for six advanced semiconductor fabs and two packaging facilities along with a research centre as part of a US$165 billion investment in Arizona that's expected to create thousands of jobs. Yet the company warned import levies would make it harder to deliver those projects on schedule, while slowing US efforts to expand domestic production of chips for 5G wireless, artificial intelligence (AI) and autonomous driving. 'Additional tariffs or other restrictive measures on semiconductors could reduce the profitability of leading US companies by limiting sourcing options, driving up production costs, and reducing product demand,' TSMC's Arizona subsidiary wrote. In its filing, Tesla urged coordination between government and industry to minimise uncertainty that could upset supply chains, citing its ties to Asia, Europe and Africa. 'These partnerships allow us to focus on increasing US dominance in advanced manufacturing,' the company wrote. 'Impacts to these inputs for which there is insufficient domestic availability will put a strain on resources during a key moment in the global AI race.' Chipmaker Intel cautioned that trading partners could respond with protective measures that exclude American products. Intel is seeking to reverse years of struggle by spending more than US$100 billion to expand its domestic manufacturing, and the company called on the administration to spare US-made wafers as well as any chips made abroad using American technology. A common concern aired by TSMC, Intel and others in the semiconductor industry centred on the risk that chipmaking equipment produced by foreign suppliers such as ASML Holding would get hit with import taxes. A single extreme ultraviolet lithography machine from Netherlands-based ASML, the world's sole provider of the most advanced chipmaking gear, can cost nearly US$400 million. Adding tariffs would significantly boost the cost of equipping new US facilities. ASML submitted feedback to the Commerce Department, but its filing was marked 'business confidential' and unavailable for public review. In its comments, Intel urged exempting such machines, noting that 'the primary cost driver for semiconductor fabs, accounting for two-thirds of total construction expenses, is equipment and machinery'. Replacing semiconductors produced abroad with domestic output would be very difficult, Feeney said. 'It takes years to create the industrial infrastructure to make creating a semiconductor fabrication facility even possible,' she said. 'At a time, we are trying to build up an AI infrastructure of data centres, the last thing you want to do is put a substantial tariff on the most important input into those data centres.' Major US trading partners, already stung by Trump's so-called reciprocal tariffs, objected to the idea of targeting chips, after seeing the auto sector, along with steel and aluminium imports, hit with levies. Taiwan, which produces nearly 90 per cent of the world's most advanced semiconductors, highlighted the complementary role of TSMC foundries that churn out wafers for leading American chip designers Nvidia and Advanced Micro Devices. Tariffs on semiconductors or related products from the island 'would severely impair Taiwan's ability to meet the demands of the US semiconductor industry in a timely manner', the Taiwanese government said in its filing. 'This would drive up costs for US companies, raise end-product prices, reduce profitability and revenue, and ultimately weaken the capacity of US firms to invest in R&D and innovation.' BLOOMBERG
