Trump embraces NATO allies — except for Spain
THE HAGUE — President Donald Trump lashed out at Spain on Wednesday, saying it would have to pay 'twice as much' in tariffs after Madrid refused to meet NATO's 5 percent spending target.
It was unclear how Trump could single out Spain directly, as it is part of the European Union, which negotiates with the U.S. on trade as a bloc. Still, his caustic comments and promises of retaliatory measures are the latest example of how the president views tariffs as an expansive tool to bludgeon other nations into accepting his terms, even when the NATO defense spending agreement has nothing to do with trade.
'We're negotiating with Spain on a trade deal and will make them pay twice as much. I'm serious about that,' Trump told reporters at the end of this year's NATO summit.
Trump's fit of pique came amid what was otherwise a cheerful victory lap — so conciliatory toward NATO and European allies it almost seemed out-of-character for a man who has a long history of denigrating the transatlantic alliance. During a free-wheeling press conference, Trump affirmed his commitment to NATO, intimated that he could still supply Ukraine with aid, chastised Russian President Vladimir Putin and spoke admiringly of other leaders' love for their countries.
The president also used his platform to defend his decision to strike Iran's nuclear sites as an unequivocal success. He also lashed out at media outlets that reported on intelligence assessments which suggested Iranian capabilities were set back mere months.
Trump heralded NATO's adoption of a new spending goal for members to devote 5 percent of gross domestic product to defense over the next decade as 'a monumental win for the United States, because we were carrying much more than our fair share, quite unfair actually.'
But rather than grousing about the past, Trump reveled in his own catalytic role in helping to rebalance the alliance. 'They said, 'You did it, sir, you did it,'' Trump said. 'Well, I don't know if I did it, but I think I did.'
Asked about Secretary General Mark Rutte's over-the-top flattery, including calling him 'daddy' earlier in the day, Trump joked that the comment was made 'very affectionately.' Secretary of State Marco Rubio, standing behind the president, struggled to suppress laughter.
The light tone at the summit's conclusion was far different than past NATO summits involving Trump, which were characterized by dread among allies.
Instead of criticising European freeloading or hedging on America's Article V commitments, Trump declared outright that NATO allies' 'passion' for their collective defense had erased much of his long-held skepticism about the alliance.
'I left here differently,' Trump said. 'I left here saying that these people really love their countries. It's not a rip off, and we're here to help them protect their country.'
Trump took the stage for his press conference shortly after a nearly hour-long meeting with Ukrainian President Volodymyr Zelenskyy, who he described as 'very nice' and praised for 'fighting a brave battle.'
The president also did not rule out approving additional defense aid for Ukraine — 'we'll see what happens,' he said. Trump expressed empathy for a Ukrainian correspondent who said her husband was in the military and part of the war effort. Perhaps most notably after months of both-sidesing the conflict, he put the onus of ending the war squarely on one side.
'Vladimir Putin really has to end that war,' Trump said.
While European leaders were full of praise for Trump at the summit and credited him with the historic increase in defense spending, some said his tariff negotiations threatened the effort to strengthen collective defense.
'We cannot, among allies, say that we must spend more…and wage a trade war,' French President Emmanuel Macron told reporters after the summit. 'It is very important that we can return to what should be the rule within a group of allies…a true trade peace.'
At a summit marked by a highly intentional, if not forced, degree of comity, the reprimand from Macron, who was also the only leader to criticize Trump's decision to strike Iran last week, stood out.
Trump spent a good portion of his closing press conference defending the Iran strikes, declaring that they were 'very, very successful — total obliteration' and lashing out at CNN and The New York Times over reports that he said 'demeaned' the troops involved.
With intelligence assessments still coming in, Trump said the 'most respected' reports confirmed that Iran was not able to relocate its nuclear material ahead of the U.S. attacks.
'We think we hit 'em so hard and so fast, they didn't get to move,' Trump said. 'We destroyed the nuclear. It's blown up…to kingdom come.'
Trump also compared the attack to the nuclear bombs the United States detonated over Hiroshima and Nagasaki in 1945.
'That ended the war, too. This ended a war in a different way, but it was so devastating,' Trump said, claiming that the use of 'bunker-buster bombs' has 'paved the way for peace' in the Middle East.
Asked what gave him confidence the day-old ceasefire between Iran and Israel would hold, Trump said: 'They're both tired, exhausted. They were both satisfied to go home and get out.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
15 minutes ago
Nestle says it will remove artificial dyes from US foods by 2026
Nestle said Wednesday it will eliminate artificial colors from its U.S. food and beverages by the middle of 2026. It's the latest big food company making that pledge. Last week, Kraft Heinz and General Mills said they would remove artificial dyes from their U.S. products by 2027. General Mills also said it plans to remove artificial dyes from its U.S. cereals and from all foods served in K-12 schools by the middle of 2026. The move has broad support. About two-thirds of Americans favor restricting or reformulating processed foods to remove ingredients like added sugar or dyes, according to an AP-NORC poll. Both California and West Virginia have recently banned artificial dyes in foods served in schools. On Sunday, Republican Gov. Greg Abbott of Texas signed a bill requiring foods made with artificial dyes or additives to contain a new safety label starting in 2027. The label would say they contain ingredients 'not recommended for human consumption' in Australia, Canada, the European Union or the U.K. The federal government is also stepping up its scrutiny of artificial colors. In January, days before President Donald Trump took office, the U.S. regulators banned the dye called Red 3 from the nation's food supply, nearly 35 years after it was barred from cosmetics because of potential cancer risk. In April, Trump's Health Secretary Robert F. Kennedy Jr. and FDA Commissioner Marty Makary said the agency would take steps to eliminate synthetic dyes by the end of 2026, largely by relying on voluntary efforts from the food industry. Nestle has pledged to remove artificial dyes before. Early in 2015, the company said it would remove artificial flavors and colors from its products by the end of that year. But the promise didn't hold. Nestle said Wednesday it's been removing synthetic dyes from its products over the last decade, and 90% of its U.S. portfolio doesn't contain them. Among those that do is Nesquik Banana Strawberry milk, which is made with Red 3. Nestle said Wednesday it wants to evolve with its U.S. customers' changing nutritional needs and preferences. 'Serving and delighting people is at the heart of everything we do and every decision that we make,' Nestle's U.S. CEO Marty Thompson said in a statement.
Yahoo
18 minutes ago
- Yahoo
Trading Day: Whirlwind fades, calm returns
By Jamie McGeever ORLANDO, Florida (Reuters) - TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist After two days of strong gains in world stocks amid the widespread relief over cooling Middle East tensions, relative stability was the hallmark of trading on Wednesday, with major asset classes moving in much narrower ranges. In my column today I look at U.S. foreign direct investment - was the sharp decline in the first quarter an anomaly, or a warning of what's to come in the brave new tariff world? More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. 1. Fed's Powell cautions against ending Fed power to payinterest on reserves 2. U.S. current account gap clocks pre-2008 crashmilestone: Mike Dolan 3. Israel-Iran war highlights Mideast's declining influenceon oil prices: Bousso 4. NATO commits to spending hike sought by Trump, and tomutual defence 5. U.S. exchanges, SEC in talks to ease public companyregulations Today's Key Market Moves * World stocks and the Nasdaq 100 hit new peaks for a secondday in a row. The S&P 500 slips, but is still very close to itsrecord high. * Some big moves in U.S. tech, with Super Micro Computer+8.8%, Nvidia +4.3% to a record high, AMD +3.6%, and Tesla-3.8%. Real estate is the biggest declining sector, -2.5%. * Oil stops the rot, kind of, gaining nearly 1% on inventory drawdown and signs of strong U.S. gasolinedemand. * The dollar slips to fresh multi-year lows against the euroand sterling. * Platinum up another 2.5% to new 11-year high above$1,350/oz. Now up 28% in June, on for its best month since 1986. Whirlwind fades, calm returns The MSCI All Country index and Nasdaq 100 touched new record highs for a second session, and Asian and emerging market stocks posted solid gains earlier in the day. But the Dow, U.S. small caps and benchmark European indexes all fell. The euro's march higher is taking its toll, and European stocks have underperformed since the brief Israel-Iran war broke out on June 13. The euro on Wednesday rose for a fifth straight day to $1.1665, its highest since October 2021. Sterling hit its highest since February 2022 at $1.3670, and Britain's FTSE 100 slipped to its lowest this month. Bank of England policymakers may be secretly cheering the pound's rally, however, if it helps tame inflation pressures. The latest Citi/YouGov survey of UK consumers' inflation expectations on Wednesday showed that long-term inflation expectations among the British public rose to the highest since September 2022. One sector faring better in Europe on Wednesday, though, was defense, after NATO leaders agreed big increases in defense spending, especially from Europe. U.S. defense stocks have moved in the other direction this week following the Iran-Israel ceasefire. On the policy and macro front, Fed Chair Jerome Powell's second day of congressional testimony passed off without fireworks, although there were sparks in his exchanges with some lawmakers. He reiterated his view that the central bank is right to wait and see what the impact is from tariffs before considering further rate cuts. U.S. foreign investment slump - anomaly or warning? Much of the 'de-dollarization' debate has focused on foreign exposure to U.S. securities like stocks and bonds. But investors shouldn't ignore foreign direct investment flows, the traditionally sticky capital that may also be sending out warning signals. Foreign direct investment typically involves an overseas entity acquiring the assets of a company in another country or increasing its holdings, often via the purchase of machinery, plants or a controlling stake. FDI is therefore considered a longer-term investment compared to portfolio flows, which can be more volatile. U.S. President Donald Trump says he has attracted record foreign investment into the country. Indeed, the White House has a page on its website with a "non-comprehensive running list of new U.S.-based investments" since Trump's second term began. The running total is in the trillions of dollars and includes pledges from several foreign countries. Included are more than $4 trillion in U.S.-bound investments pledged by the United Arab Emirates, Qatar, Japan and Saudi Arabia. During Trump's trip to the Middle East last month, he said the U.S. is on track to receive $12-$13 trillion of investments from countries around the globe, which includes "projects mostly announced ... and some to be announced very shortly." These flows may emerge in full, in time. But official figures on Tuesday showed that FDI in the first quarter actually fell to $52.8 billion, the lowest total since the fourth quarter of 2022. That's well below the quarterly averages of the past 10 and 20 years. The Commerce Department figures also showed that the U.S. current account deficit widened to a record $450.2 billion in the quarter, or 6% of U.S. GDP, meaning FDI inflows barely covered 10% of that shortfall. Should the Trump administration be worried? TARIFF DISTORTIONS The short answer is probably not, at least not yet. FDI flows are typically far smaller than portfolio flows into equity and fixed income securities, so from the perspective of funding the current account deficit, the drop in FDI is not as pressing a concern. On the other hand, if foreign investors are also buying fewer U.S. securities, capital from elsewhere will be needed to fund that deficit. Additionally, America's balance of payments data in the first quarter was hugely distorted by domestic consumers and businesses front-running Trump's tariffs, loading up on imports before the duties kick in later this year. Trump's bet is that the deficit will shrink this year and beyond as his 'America First' policies spur more "onshoring" from domestic firms as they bring production back home and the weakening dollar helps U.S. manufacturing by making exports more competitive. The subsequent boom will attract investment from companies and governments overseas. In theory. However, these dynamics work both ways. For example, the European Union is by far the largest provider of U.S. FDI, accounting for 45% of the total in 2023, according to Citi. The combination of the continent's German-led fiscal splurge, U.S. tariffs and 'de-dollarization' concerns could easily crimp that flow, perhaps significantly. Another potential risk to U.S.-bound FDI is 'Section 899' - the possible tax of up to 20% on foreigners' U.S. income that could be part of Trump's budget plans. A Tax Foundation report in May found that Section 899 would "hit inbound investment from countries that make up more than 80 percent of the U.S. inbound FDI stock." Industry pushback may water down Section 899, but it remains a cloud on the U.S. investment horizon. The U.S. is the world's biggest recipient of FDI, with a 25% share of global volumes in 2023, up from around 15% before the pandemic, according to Citi. Its economy is the largest in the world, a thriving hub of innovation, pioneering technology, artificial intelligence and money-making potential. That will always attract FDI. Whether it attracts as much in this new environment remains to be seen. What could move markets tomorrow? * Germany GfK consumer confidence (July) * European Central Bank President Christine Lagarde, VicePresident Luis de Guindos and board member Isabel Schnabel speak(at different events) * Bank of England Governor Andrew Bailey and Deputy GovernorSarah Breeden speak (at different events) * U.S. weekly jobless claims * U.S. durable goods (May) * U.S. trade (May) * U.S. GDP (Q1, final estimate) * U.S. 7-year note auction * Richmond Fed President Thomas Barkin, Cleveland FedPresident Beth Hammack and Fed Governor Michael Barr speak (atdifferent events) Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. (By Jamie McGeever; Editing by Nia Williams) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Politico
18 minutes ago
- Politico
Trump's war on the courts intensifies
Presented by Bayer Welcome to POLITICO's West Wing Playbook: Remaking Government, your guide to Donald Trump's unprecedented overhaul of the federal government — the key decisions, the critical characters and the power dynamics that are upending Washington and beyond. Send tips | Subscribe | Email Sophia | Email Irie | Email Ben| Email Kyle President DONALD TRUMP's administration is in a full-blown war with the federal courts, with the fate of American governance on the line. That's the only way to read the increasingly confrontational, bare-knuckle tactics that the administration is deploying against the judiciary — and the steady, pointed resistance from judges. On Tuesday night, the Justice Department filed an unusual lawsuit against the entire bench of the federal district court in Maryland — where dozens of cases against the administration are pending — over a blanket, automatic two-day pause on deportations in cases brought by detained immigrants. A department spokesperson said the lawsuit was intended to 'rein in unlawful judicial overreach.' In an increasingly pointed Supreme Court showdown with immigration advocates, Solicitor General JOHN SAUER labeled a federal district judge's order reimposing restrictions on the deportation of eight men to South Sudan a 'lawless act of defiance.' Advocates for the men say the fight is even larger than their clients: It is about whether the high court will countenance the administration's defiance of the courts altogether. While the justices ruminate, skirmishes between the courts and the administration are proliferating and intensifying. In the most high-profile case of all, the criminal prosecution of KILMAR ABREGO GARCIA, a magistrate judge in Texas ripped the Justice Department for allegations that 'defy common sense' and relied on flimsy evidence. In another prominent legal showdown, a federal judge ordered the release of pro-Palestinian activist MAHMOUD KHALIL after determining that his continued detention was an unconstitutional attack on free speech. But even in cases that are off the national radar, judges are expressing shock and dismay at mass deportation tactics that stretch the bounds of the law and Constitution: The clearest distillation of this clash of co-equal branches comes in Trump's attempt to place a staunch loyalist onto the Philadelphia-based bench of the 3rd Circuit Court of Appeals. After leading Trump's defense in three criminal cases, EMIL BOVE has become Trump's brashest Justice Department enforcer. He has directed purges of purportedly disloyal prosecutors and attacked the integrity of those who refused to follow orders to drop DOJ's corruption case against New York City Mayor ERIC ADAMS or who participated in the investigation of the Jan. 6, 2021 attack on the Capitol. A day before Bove's confirmation hearing before the Senate Judiciary Committee, a former Justice Department attorney alleged that Bove spearheaded a drive to sidestep adverse court orders in crucial deportation cases. Those allegations were at the center of Democrats' questions today for Bove, who pledged to be an impartial interpreter of the law, despite his track record as a pro-Trump bulldog. Attorney General PAM BONDI, who will have a role in reviewing the whistleblower complaint against Bove, told senators today that she would 'run through a wall for Emil Bove.' And after testifying, she filed into the Senate Judiciary hearing room to catch the end of Bove's confirmation proceedings. Minutes after it ended, Bondi issued a statement slamming courts that had ruled against Trump, saying their orders were 'designed to halt his agenda.' But the courts so far seem undeterred. This afternoon, a judge rejected DOJ's argument to keep Abrego behind bars while he awaits trial on immigrant smuggling charges in Tennessee. The judge, WAVERLY CRENSHAW, JR., said DOJ's position — that DHS might deport Abrego if he is not detained on his criminal charges — 'defies logic,' since the Trump administration controls both agencies. 'If the Government finds this case to be as high priority as it argues here, it is incumbent upon it to ensure that Abrego is held accountable for the charges in the Indictment,' Crenshaw said. 'If the Department of Justice and DHS cannot do so, that speaks for itself.' MESSAGE US — West Wing Playbook is obsessively covering the Trump administration's reshaping of the federal government. Are you a federal worker? A DOGE staffer? Have you picked up on any upcoming DOGE moves? We want to hear from you on how this is playing out. Email us at westwingtips@ Did someone forward this email to you? Subscribe! POTUS PUZZLER Which former president was buried with a copy of the Constitution under his head? (Answer at bottom.) Knives Out LAKE MAKES HER CASE: KARI LAKE, senior adviser to the U.S. Agency for Global Media, today defended the Trump administration's dismantling of the agency and its independent outlet Voice of America, where more than 600 full-time staffers received termination notices last week, telling the House Foreign Affairs committee that USAGM 'is not needed.' Democratic lawmakers questioned whether Lake was qualified to lead the agency due to her repeated false claims that Trump did not lose the 2020 presidential election and that she did not lose her own gubernatorial and Senate races in 2020 and 2024, respectively. 'I can't imagine how people fighting for democracy today around the world could trust someone who so shamelessly lied about her own election,' said Rep. GREG STANTON (D-Ariz.). One House Republican expressed concern related to the conflict between Israel and Iran, which prompted the agency's Farsi-language service to be hastily called back to work. 'I worry about the U.S. government's ability to win in the information domain during the next crisis, which could be just around the corner,' said Rep. YOUNG KIM (R-Calif.). Agenda Setting EVERY SINGLE STATE: Ahead of the Office of Management and Budget Director RUSS VOUGHT's testimony before the Senate Appropriations Committee this afternoon on the $9.4 billion rescissions package, Vice Chair Sen. PATTY MURRAY (D-Wash.) released a map of the 1,500 local radio and TV stations that would lose funding from the Corporation for Public Broadcasting. Some Republicans including Sen. MIKE ROUNDS (R-S.D.) have raised concerns about public broadcasting cuts. 'UNNECESSARILY CHAOTIC': Sen. MITCH McCONNELL, the longest-serving party leader in Senate history, sharply criticized how the administration has executed its plan to root out government waste, our HASSAN ALI KANU writes in. 'There's plenty of absolute nonsense masquerading as American aid that shouldn't receive another bit of taxpayer funding, but the administration's attempt to root it out has been unnecessarily chaotic,' McConnell said to Vought. 'In critical corners of the globe, instead of creating efficiencies, you've created vacuums for adversaries like China to fill.' McConnell has been sharply critical of some of the Trump administration's foreign policy moves, chiefly on its handling of Ukraine. But his comments today raise new questions about his support for the administration's rescissions package. PAGING DR. CASSIDY: The newly formed vaccine advisory committee chosen by HHS Secretary ROBERT F. KENNEDY JR. announced today that it would review childhood vaccines and shots not studied in more than seven years, our SOPHIE GARDNER and DAVID LIM report. The decision by the new group, tasked with reviewing the childhood immunization schedule, could open the door to changes on how and when children are vaccinated. The chair of the Advisory Committee for Immunization Practices said the committee would maintain existing working groups tasked with examining vaccines and that new work groups will also be established. MORE ON VACCINES: Kennedy announced today that the U.S. will withdraw financial support for Gavi, a global organization that helps purchase vaccines for children in poor countries, NYT's STEPHANIE NOLEN reports. Kennedy accused the group's leaders of having 'ignored the science' in immunizing children globally. Kennedy argued that Gavi's leaders had been selective in their use of science to support vaccine choices and said that the U.S. would not deliver on its $1.2 billion pledge to support the program until it changed its processes. Gavi's leaders rejected the suggestion that its vaccine purchases were driven by anything other than scientific evidence. In the Courts WIN FOR UNIONS: A federal judge in San Francisco today blocked Trump's executive order seeking to terminate the collective bargaining rights of workers whose unions have opposed and sued the administration, Hassan writes in. Judge JAMES DONATO's order restores the status and rights of about 950,000 federal workers at 21 agencies who are represented by the American Federation of Government Employees and four other unions, according to the AFGE. Trump sought to abruptly revoke collective bargaining rights from much of the public sector in March, relying on a law that allows agencies to be excluded from coverage if the president determines their primary function is national security work. But Donato held that the White House's own statements are fairly clear that at least part of the motivation is unlawful 1st Amendment retaliation. Trump's anti-union policies have survived a separate challenge before the D.C. Circuit Court of Appeals, which temporarily revived the executive order last month in a case brought by the National Treasury Employees Union. THE WHOLE GANG'S ON BOARD: Almost two dozen Democratic attorneys general are challenging the Trump administration's argument for cutting billions of dollars in federal grant funding for states and other recipients, POLITICO's E&E News' NIINA H. FARAH reports. The new lawsuit, filed in Massachusetts federal district court on Tuesday, is the latest challenge to the administration's 'slash-and-burn campaign' to freeze congressionally mandated funding for an array of programs. The lawsuit does not ask the federal court to restore canceled grant funding, unlike previous, pending challenges. Instead, it asks for a judge to weigh in on the administration's reliance on a clause in a 2020 regulation that says agencies can cancel grant funding that 'no longer effectuates … agency priorities.' WHO'S IN, WHO'S OUT (BIG) BALLS TO THE WALL: The infamous EDWARD CORISTINE, the 19-year-old DOGE staffer known as 'Big Balls,' has left his government role, WIRED's JAKE LAHUT, MAKENA KELLY, VITTORIA ELLIOTT and ZOË SCHIFFER report. 'Edward Coristine resigned yesterday,' a White House official told WIRED. Coristine received full-time employment status at the General Services Administration late last month, but as of Tuesday, his Google Workspace account with GSA was no longer active. His name no longer appears on a White House contact list of current DOGE employees on the federal payroll maintained by a senior administration official. Coristine, according to another former DOGE staffer, 'was one of a small group of technologists who were highly trusted within DOGE and deployed across multiple federal agencies, and given multiple federal laptops,' WIRED writes. What We're Reading The Self-Deportation Psyop (The Atlantic's Nick Miroff) U.S. Textile Makers, Feeling Forgotten by Trump, Hope Boom Days Are Ahead (NYT's Alan Rappeport) A Military Ethics Professor Resigns in Protest (The Atlantic's Tom Nichols) POTUS PUZZLER ANSWER Former President ANDREW JOHNSON was buried in 1875 with a copy of the Constitution under his head and his body wrapped in an American flag, according to the National Park Service.
