The Dictatorship
As markets implode, US trading partners puzzle over whether there’s room for negotiations
BRUSSELS (AP) — America’s trading partners wrestled with responses to U.S. President Donald Trump’s blast of tariff hikes and some planned to send negotiators to Washington, while the head of the European Union’s executive commission offered mutual reduction of tariffs – while warning that retaliation was an option too.
“We stand ready to negotiate with the United States,” said commission President Ursula von der Leyen. “Indeed, we have offered zero for zero tariffs for industrial goods, as we have successfully done with many other trading partners. Because Europe is always ready for a good deal.”
But she warned that “we are also prepared to respond through countermeasures and defend our interests.”
China has already hit back against the U.S. with retaliatory tariffs and similar actions from Europe and elsewhere remain a significant possibility.
The U.S. and the EU had a zero-for-zero deal on wine and spirits from 1997 to 2018, and reducing many tariffs to zero was a goal of complex negotiations for a US-Europe free-trade deal before negotiations stalled in 2016.
Yet there was little indication Trump is ready to deal. The EU trade commissioner, Maros Sefcovic, spoke for two hours with Trump administration Friday and would say only that “we stay in touch.”
And White House trade adviser Peter Navarro told CNBC on Monday that an offer by Vietnam to eliminate tariffs on U.S. imports would not lead to a pullback on the the newly announced 46% levy on its imports to the U.S.
“Let’s take Vietnam. When they come to us and say ‘we’ll go to zero tariffs,’ that means nothing to us because it’s the non-tariff cheating that matters,” Navarro said on CNBC
Major trade partner China was taking a tougher line and accused the U.S. of “bullying” after imposing a 34% tariff on Friday on all US goods, the exact same rate Trump slapped China with in his latest round of new import taxes.
Several other countries said they were sending trade officials to Washington to try to talk through the crisis, which has cast uncertainty over the global economic outlook, hammered markets and left U.S. allies wondering about the value of their ties with the world’s largest economy.
European Union trade ministers were closeted Monday in Luxembourg to weigh possible steps that could include taxes on U.S. tech companies like Google, Apple and Amazon. The European Union’s executive commission – which handles trade issues for the 27-country bloc – is set to impose tariffs on Jeans, whiskey and motorcycles on Wednesday in response to Trumps increase in steel and aluminum tariffs.
But it hasn’t decided a response yet to Trump’s “reciprocal” tariff of 20% on European goods announced Wednesday and a 25% tariff imposed on autos from everywhere. French officials have raised imposing tariffs on services like internet commerce or financial services, where the U.S. sells more than it buys from Europe and is in theory more vulnerable than in goods trade.
Germany’s economy minister, Robert Habeck, was defiant as he arrived, saying the premise of the wide-ranging tariffs was “nonsense” and that attempts by individual countries to win exemptions haven’t worked in the past.
It’s important for the EU to stick together, he said. That “means being clear that we are in a strong position — America is in a position of weakness.”
So far the European approach has been to selectively target politically sensitive goods rather than impose sweeping retaliation since like most economists officials they view tariff wars as a lose-lose game.
China, which hit back Friday at Washington with 34% tariffs on U.S. products and other retaliatory moves, sharply accused the U.S. of failing to play fair. “Putting ‘America First’ over international rules is a typical act of unilateralism, protectionism and economic bullying,” Foreign Affairs spokesperson Lin Jian told reporters.
The ruling Communist Party struck a note of confidence even as markets in Hong Kong and Shanghai crumpled. “The sky won’t fall,” declared The People’s Daily, the party’s official mouthpiece. “Faced with the indiscriminate punches of U.S. taxes, we know what we are doing and we have tools at our disposal.”
China’s Commerce Ministry said officials met with representatives of 20 American businesses including Tesla and GE Healthcare over the weekend and urged them to take “concrete actions” to address the tariffs issue.
During the meeting, Ling Ji, a vice minister of commerce, promised that China will remain open to foreign investment, according to the readout by the ministry.
Other Asian nations seek negotiations
South Korea’s Trade Ministry said its top negotiator, Inkyo Cheong, will visit Washington this week to express Seoul’s concerns over the 25% tariffs on Korean goods and discuss ways to mitigate the damage to South Korean businesses, which include major automakers and steel makers. Asian countries are among the most exposed to Trump’s tariffs ranging from a baseline 10% to 50% since their export-oriented economies send a lot of goods to the U.S.
Pakistan also planned to send a delegation to Washington this month to try negotiate over the 29% tariffs on its exports to the U.S., officials said. The prime minister ordered Finance Minister Muhammad Aurangzeb to assess the tariff’s potential impact on Pakistan’s fragile economy and draw up recommendations.
The U.S. imports around $5 billion worth of textiles and other products each year from Pakistan, which heavily relies on loans from the International Monetary Fund and other lenders.
In Southeast Asia, Malaysia’s Trade Minister Zafrul Abdul Aziz said his country will seek to forge a united response from the Association of Southeast Asian Nations to Trump’s sweeping tariffs.
As chair of the 10-nation body this year, Malaysia will lead a meeting Thursday in its capital Kuala Lumpur to discuss broader implications of the trade war on regional trade and investment, Zafrul told reporters.
“We are looking at the investment flows, macroeconomic stability and ASEAN’s coordinated response to this tariff issue,” Zafrul said.
He said that he had met with the U.S. ambassador to Malaysia to try to clarify how the U.S. came up with its 24% tariff.
Indonesia plans to increase imports from US
Indonesia, one of the region’s biggest economies, said it would work with businesses to increase its imports of U.S. wheat, cotton, oil and gas to help reduce its trade surplus, which was $18 billion in 2024.
Coordinating Economic Affairs Minister Airlangga Hartarto told a news conference that Indonesia will not retaliate against the new 32% tariff on Indonesian exports, but would use diplomacy to seek mutually beneficial solutions.
Some Southeast Asian neighbors, including Vietnam, Cambodia, Laos and Myanmar, face tariffs of over 40%, giving Indonesia a slight advantage, he noted.
“For Indonesia, it is also another opportunity as its market is huge in America,” Hartoto said. He said Indonesia would buy U.S.-made components for several national strategic projects, including refineries.
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Associated Press journalists from around the world contributed to this report.
DUBAI, United Arab Emirates (AP) — Iran again launched drone and missile attacks targeting Bahrainand Kuwaiton Sunday following new U.S. airstrikes against the Islamic Republic, and threatened a “complete halt” in negotiations to end the warif Washington continues its attacks.
Efforts to reopen the Strait of Hormuzwithout Iran’s oversight has sparked days of crossfire. A multinational maritime body overseen by the U.S. Navy said Saturday it would expand a route near Omanfor inbound and outbound traffic.
Iranian Foreign Minister Abbas Araghchi on Sunday reiterated the claim that Tehran must govern the strait to the Persian Gulfthat once carried a fifth of the world’s oil and natural gas.
“Any attempt to establish new or separate arrangements from those currently being carried out by the Islamic Republic of Iran will only lead to further complications, delay the reopening of the Strait of Hormuz and increase the level of tension,” Araghchi said.
The strait has long been considered an international waterway despite its location in Iran and Oman’s territorial waters. In recent days, Iran has twice attacked vessels going through a route near the Omani side.
A Pakistani official involved in the technical talks between the U.S. and Iran told MS NOW Sunday that talks between the sides are on hold given the ongoing fighting between the two sides. The source, who did not want to be named to discuss the sensitive matter, said the U.S., Iran, Pakistan and Qatar all have representatives currently in Switzerland to restart discussions when instructed to do so.
But the Trump administration said nothing has been canceled and technical talks are on track for the coming days.
Talks include arrangements around the strait, the removal of a U.S. blockade on Iranian ports and sanctions on Iran, and the future of Iran’s stockpile of highly enriched uranium. The two sides have 60 days from their signing of the memorandum of understanding earlier this month to work out details.
Continued conflict in Lebanon threatens the agreement, which says fighting must end on all fronts before certain issues can be discussed.
Strikes target Gulf states hosting US military
Iran’s paramilitary Revolutionary Guard claimed responsibility for the attacks in Bahrain and Kuwait.
Kuwait, which hosts a major U.S. military base, said air defenses intercepted Iranian drones and two missiles just after the U.S. strikes in Iran. There were no reports of injuries or damage.
Bahrain said the Iranian strikes damaged a residential building near the international airport and no one was killed. Bahrain is home to the U.S. Navy’s 5th Fleet. The damaged building was not near its headquarters.
Bahrain’s Foreign Ministry denounced what it called “a dangerous escalation that reveals that what Tehran is doing is not a passing act, nor an isolated incident, but rather a deliberate approach and a systematic pattern of repeated aggression.”
Later on Sunday, Qatar said a civilian had been killed, and another person was hurt, by shrapnel related to “military operations in the area” after a vessel didn’t return at its scheduled time on Saturday. It did not give details.
Trump accuses Iran of violating ceasefire
The U.S. military said it struck Iranian military “surveillance infrastructure, communication systems, air defense sites, drone storage facilities and minelayer capabilities” following an attack on a ship on Saturday. The Panamanian-flagged tanker Kiku carried crude oil for the state-run energy company of Qatar, another key mediator.
U.S. President Donald Trump on social media accused Iran of violating the deal and warned of a point where the U.S. may “be forced to militarily complete the job.”
“If that happens, the Islamic Republic of Iran will no longer exist!” Trump wrote.
The exchanges of fire began when an Iranian drone struck a merchant vesseloff Oman on Thursday and the U.S. military retaliated.
Ship traffic on the strait had increased over the past 72 hours, “despite the elevated threat environment,” the multinational maritime body overseen by the U.S. Navy said Sunday, adding that “U.S.-assisted commercial transits continued uninterrupted.”
It said 89 such transits had been made, below the historical average of 138 vessels a day.
Iran calls for new ‘conflict control unit’ in Lebanon
Last week, Israel and Lebanon signed a framework agreementto end the latest fighting between Israel and the Iranian-backed Hezbollah militant group, which began two days after the Iran war started when Hezbollah fired at Israel. Israel has responded with an invasion of southern Lebanon and it has said it will not withdraw until Hezbollah is disarmed.
The agreement did not include Iran or Hezbollah, which has criticized itand rejected calls to disarm.
On Sunday, Iran’s foreign minister again said the U.S. must force Israel to halt attacks and withdraw. Israel occupies around 600 square kilometers (231 square miles) in southern Lebanon, which it says it needs as a security buffer.
Sporadic clashes have continued, and Hezbollah’s leader said Saturday that the group would continue fighting until Israel withdraws from Lebanon.
Key Iranian negotiator and parliament Speaker Mohammad Bagher Qalibaf said Sunday that a meeting of a new “conflict control unit” formed among Iran, the United States and Lebanon should meet as soon as possible, Iran’s state broadcaster reported.
Two strikes hit southern Lebanon on Sunday morning — one in Taybeh town and the other in the Nabatiyeh area, according to Lebanon’s National News Agency. There was no immediate word on casualties.
Overnight, Hezbollah militants killed an Israeli soldier in Deir Siryan village in southern Lebanon, according to Israel’s military. Hezbollah did not comment.
Israel targets a village in Syria
Israel’s military targeted Abdin village in southern Syria’s Daraa province with artillery shelling Sunday evening, Syrian state media reported. There was no immediate report of casualties.
State news agency SANA earlier reported that residents had blocked the road into the village with stones to prevent Israeli forces from entering it again after they had entered and withdrawn.
Earlier Sunday, Israel’s military said it had killed several armed men in southern Syria but gave no details. There was no statement from Syrian officials.
Israel seized control of a U.N.-patrolled buffer zone in southern Syria in December 2024 following the ouster of former Syrian President Bashar Assad in an insurgent offensive. Israeli officials initially called the move temporary, but more recently they have said they plan to occupy the zone indefinitely.
New York Mayor Zohran Mamdani has a message for political opponents using him as the new face of the Democratic Party: “Let them.”
Recent primary races in New York turned into a proxy war between progressives, including democratic socialists like Mamdani, and establishment Democratic politicians after candidates endorsed by Mamdani faced off against those endorsed by House Minority Leader Hakeem Jeffries and New York Gov. Kathy Hochul. After all three of Mamdani’s endorsements bore fruit, a national spotlight shone on the mayor as a growing influence in the Democratic Party.
Asked on ABC News’ “This Week” on Sunday how he felt about Republicans making him the “poster child” for the Democratic Party, Mamdani said, “Let them. We don’t have to ask ourselves what life looks like if a socialist wins. I won last November, and over the course of these last six months, what we’ve delivered for working people are the very things we were told were impossible.”
He touted recent campaign promises he delivered on, including freezing rents for nearly one million rent-stabilized apartments, expanding free child care and filling potholes across the city.
“I think we are seeing a hunger that is not just felt by New Yorkers, but frankly by Americans from coast to coast for a new politics, one that puts working people at the heart of it,” Mamdani told ABC.
Mamdani dismissed criticism from Republicans and Democrats alike. Jeffries, who represents parts of Brooklyn and Queens, said last week that he and the mayor “agree to strongly disagree about some of his endorsements, and he’s got work to do in terms of the conversations that he’s going to have with members of Congress moving forward.” Democratic Sen. Richard Blumenthal of Connecticut said, “The effort to nationalize New York is going to fail.”
Mamdani said he’s focused on the three congressional candidates he has already endorsed: Brad LanderDarializa Avila Chevalier and Claire Valdez. But he didn’t rule out future endorsements outside of New York.
“It’s not just New York City where working people are asking themselves ‘why can’t I afford my rent, why can’t I afford my groceries, why can’t I find enough money in my pocket for childcare no matter how hard I work?,’” Mamdani said.
When asked about a recent manifesto penned by a number of moderate House Democrats and Democratic candidates, promoting capitalism over socialism, Mamdani doubled down on his vision for the party.
“I’m not interested in writing a manifesto, or frankly, in reading one,” the mayor said. “I’m interested in delivering.”
Mamdani also criticized Democrats who continue to make antagonizing Trump the center of their politics rather than working people.
“You’ve got to have something that you are not just willing to stand up for, but that you’re also willing to explain how this is relevant to working people,” he said. “And I think this just comes back to the fact that I’m leading a city that’s the wealthiest city in the wealthiest country in the history of the world. I could end the sentence there and say that life is great for 8.5 million people. But it’s also a city where one in four are living in poverty. And for far too many Americans, those contradictions have become their day to day life.”
Erum Salam is a breaking news reporter for MS NOW, with a focus on how global events and foreign policy shape U.S. politics. She previously was a breaking news reporter for The Guardian.
Despite remaining undefeated in the initial round of the World Cupthe Iran national team is going home after failing to secure enough points to advance. But they do not leave quietly.
Iran’s tumultuous journey in the World Cup has been the subject of widespread attention amid the U.S. war with Iran, with the United States being one of three countries hosting matches. The Iranian team captain, Mehdi Taremi, blamed FIFA, saying, “It’s a disaster World Cup. A disaster.”
“I mean, FIFA, they have to solve every problem here but unfortunately they could not solve it since the beginning,” Taremi said at a press conference Friday after his team drew with Egypt, knocking Iran out of the tournament.
He pointed to the team’s biggest obstacle. “We don’t have our logistics people here. They don’t have a visa,” Taremi said, adding, “We always complain about these things but no one helps. No one.”
The Trump administration denied visas to key Iranian staff and severely restricted players’ travel. The team’s base camp was moved from Arizona to Tijuana, Mexico, where it was required to return immediately after each game.
“How is it possible we always have to travel from Tijuana? We love the people in Tijuana. We love Mexico,” the Iran team captain said, but added, “It’s not fair.”
Throughout the tournament, the Football Federation of Iran lamented the number of issues, threatening to lodge a formal complaint against FIFA. Head coach Amir Ghalenoei called his team the “most oppressed” in the tournament. A few days before Iran’s final match against Egypt in Seattle on Friday, the U.S. loosened travel restrictions to allow players to enter the United States two days before the game.
“The Iran team will still be required to leave the day the match ends,” the Department of Homeland Security said ahead of the match. “The overall security measures and protocol are the same. We remain committed to providing the safest tournament possible for players, staff, and fans alike.”
Still, Iran finished Group G in third place with three points earned after drawing in its matches against Belgium, New Zealandand Egypt. Under FIFA’s new 48-team format, the top eight of third-place teams move on to the next round, but Iran narrowly fell short.
The team initially seemed poised to advance when it was tied with the same amount of points as Algeria, which scored a goal in stoppage-time against Austria Saturday night. But moments later, Austria tied the game, guaranteeing Iran’s elimination.
Off the field, tensions with Iran heightened Friday when the U.S. struck Iran despite signing a memorandum of understanding meant to halt hostilities in order to finalize a peace deal.
Erum Salam is a breaking news reporter for MS NOW, with a focus on how global events and foreign policy shape U.S. politics. She previously was a breaking news reporter for The Guardian.
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