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Inside Trump’s 72-hour EU trade whiplash

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CNN
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President Donald Trump stunned European officials and caught some of his own senior advisers off guard with his snap decision Friday to reignite his market-rattling trade war with the European Union.

Three days later, he got exactly what he wanted.

“I have just been informed that the E.U. has called to quickly establish meeting dates,” Trump posted Tuesday on his Truth Social account, calling it a “positive event.”

The journey from Trump’s threat to slap 50% tariffs on EU imports – to his pause on that threat Sunday – reshapes the process for trade negotiations that had become a growing irritant inside the White House, according to two people familiar with the matter.

There was agreement among Trump administration officials that the EU trade talks needed to be shaken up. What, exactly, that would entail and when it was coming was Trump’s domain.

“We expected it,” National Economic Council Director Kevin Hassett told CNN of Trump’s broadside. “In the end, the president makes up his mind and he’s got a lot of stuff on his plate.”

Top Trump administration officials privately warned their EU counterparts in recent weeks that the plodding pace of trade talks between the US and 27-country bloc had become a significant problem.

But there was never an explicit threat or new deadline included in those warnings, according to three European diplomats. The EU had a process – and despite the methodical and time-consuming nature of that process, plodding is simply how trade negotiations worked, one said.

The US side had its own issues in their view: European negotiators were making unreasonable demands and lacked clarity about what the outlines of an acceptable proposal would look like.

Still, some European officials expressed cautious optimism that a term sheet presented to the administration early last week would demonstrate a level of concrete progress that would ease White House frustrations.

US Trade Representative Jamieson Greer had stated clearly in conversations that the lack of any proposals in writing had been an undeniable irritant, and the EU proposals represented an effort to address that issue.

The offer differed substantially from a list of priorities laid out by the US side beforehand, but its content and those differences were expected to serve as the basis for a call scheduled between Greer and Maros Sefcovik, the EU’s trade chief, one of the EU diplomats said.

That call was scheduled for May 23 at 11:30 a.m. ET. US officials were preparing to use the call to reject the outline of tariff reductions drafted by the EU. And then Trump posted his thoughts on social media.

Trump’s own personal view was delivered on his Truth Social account four hours before the call was set to take place.

“Our discussions with them are going nowhere!” Trump posted. “Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”

There was little immediate public explanation or detail from the White House in the aftermath of Trump’s dramatic escalation.

Markets tumbled upon recognizing the weeks-long reprieve in Trump’s tariff war would be cut short, a reality that seemed to harden when Trump spoke later that in the Oval Office afternoon and offered no indication he was seeking an off-ramp.

But Treasury Secretary Scott Bessent, who had been out of Washington throughout the week leading up to Trump’s escalation, offered the first clue at Trump’s endgame in a live television interview a few hours after Trump’s threat.

“I believe the president believes that the EU proposals have not been of the same quality that we’ve seen from our other important trading partners,” Bessent said in an interview on Fox News. “I would hope that this would light a fire under the EU.”

The statement offered a clue about what has become a never-ending market debate over whether Trump’s tariff threats represent a negotiating tactic or clear intent to implement in full.

The truth, according to multiple advisors, is that it depends – in part because Trump at times hasn’t made up his own mind.

But Bessent’s comments were a tell, despite the fact he’d given no sign he’d been aware of Trump’s threatened escalation ahead of time.

Bessent, who has become Trump’s chief economic spokesman and top negotiator, had just returned the US from the G7 finance leader meetings in Canada when Trump sent his post.

Bessent did not provide any indication in his meetings with European counterparts in attendance or the European Commission executive vice president that Trump’s escalation was coming, people familiar with the matter said.

The role Bessent played and approach he brought to the meetings with finance officials who were unsettled by Trump’s tariff strategy was “productive and very well received,” one European official said. The group managed to agree on a final communique despite persistent doubts based tied in part to Trump’s tariffs.

Bessent kept a low public profile during the meetings and did not hold a press conference while in attendance.

“The conversation in Canada was fine,” Bessent said on Fox News. “The problem was the lead up to that.”

Bessent has publicly pointed to that problem before – and it’s one that has deeply frustrated Trump’s economic team in recent weeks.

They have a collective action problem,” Bessent said on Bloomberg Television the same day. “They’re twenty-seven countries, they all have different needs.”

Hassett, who has been involved in the EU negotiations when they take place in Washington, said of all 18 bilateral trade talks now under way as part of Trump’s 90-day “reciprocal” tariff pause, the EU is “actually about the toughest nut to crack.”

“They can’t make up their minds,” Hassett told CNN. “It’s been very difficult to negotiate with them.

But Hassett emphasized that Trump has formed a close relationship with European Commission President Ursula von der Leyen, which played an important role in his decision to delay the 50% levies until July 9.

In their call over the weekend, von der Leyen committed to move “swiftly and decisively” on talks going forward to Trump but made clear the EU would need more time.

Trump said it would be “his privilege” to do so, setting in motion what will now be a six-week sprint for US and EU negotiators to reach an agreement.

Sefcovic held calls with Lutnick and Greer on Monday to lay the groundwork for the path ahead, posting on social media that the EU Commission “remains fully committed to constructive and focused efforts at pace” toward a deal.

Trump, in the same post touting the “positive” direction of the talks, made sure to maintain some of that leverage should it all fall apart.

“I was extremely satisfied with the 50% Tariff allotment on the European Union, especially since they were “slow walking (to put it mildly!), our negotiations with them,” Trump posted. “Remember, I am empowered to “SET A DEAL” for Trade into the United States if we are unable to make a deal, or are treated unfairly.”



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UK to build new attack submarines and ramp up ‘war-fighting readiness’ with an eye on Russia, Starmer says

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London
CNN
 — 

Britain will build new attack submarines, invest billions on nuclear warheads and move toward “war-fighting readiness,” Prime Minister Keir Starmer said Monday, shortly before the publication of a landmark review of the future of the country’s military.

Starmer’s government said it would build “up to” 12 new attack submarines as part of its AUKUS partnership with the United States and Australia, replacing the country’s current class of seven subs from the late 2030s.

And he will launch a “historic renewal” of the UK’s nuclear deterrent backed by a £15 billion ($20.3 bn) investment, Starmer said in a speech in Scotland on Monday.

The announcements came on the same day as the publication of the long-awaited UK Strategic Defense Review into Britain’s armed services, which outlined how the British military would pursue an “immediate” shift toward greater use of autonomy and AI in the wake of Ukraine’s experiences in its war with Russia.

“When we are being directly threatened by states with advanced military forces, the most effective way to deter them is to be ready, and frankly, to show them that we’re ready to deliver peace through strength,” Starmer said Monday.

But Starmer refused to set out the timeline for his pledge that Britain’s overall defense spending would hit 3% of the UK’s gross domestic product (GDP). The uplift, announced earlier this year, is set to be reached by the end of the next parliament in 2034, but is dependent on economic conditions.

And the prime minister did not set out where the money to pay for the new weaponry will come from; he previously announced cuts to the UK’s aid budget to fund the uplift in defense spending, and he declined to rule out similar moves on Monday.

Starmer pledged to turn the UK into a

According to the 144-page review, units in future will be made up of only 20% crewed vehicles, with the remainder of capabilities split between “reusable” platforms, like drones that survive repeated missions, and 40% single-use weapons, like rockets or attack drones.

The Royal Navy is to “move toward a more powerful but cheaper and simpler fleet,” and the UK’s two aircraft carriers (the largest in Europe) will shift to being used as a base for European – rather than only British – aircraft and drones.

Meanwhile, under the waves, unmanned subs and sensors will police the North Atlantic against Russian military movements.

However, some such capabilities will require a decade of investment and development, Dr Marion Messmer, a senior research fellow at thinktank Chatham House told CNN.

That stretches far beyond the forecast of certain European countries that Russia could be ready to threaten European borders militarily six months to a few years after ending fighting with Ukraine.

Even so, the boosted investment in the UK’s nuclear capabilities as well as potential integration with European deterrence outlined in the document will strike a nerve with Moscow, she said.

The fiscal promise from the UK falls short of defense spending promises from some NATO countries, whose spending has been closely scrutinized by US President Donald Trump.

NATO’s Secretary General Mark Rutte said last month he “assumed” NATO members will agree on a defense spending target of 5% at June’s NATO summit, a significant increase from the 2% benchmark, which was agreed to in 2014.

Per 2024 NATO data, only Poland’s defense expenditure was above 4% of GDP, although Latvia and Estonia had promised increases to 5%, with Italy promising a hike to between 3.5 and 5% of GDP. The US’ defense expenditure sat at 3.38% of GDP in 2024, making up some 64% of total NATO expenditure.

Just weeks before NATO allies could agree on a significantly higher spending target, “it seems a little risky for the UK government to essentially have boxed itself in” to a 2.5%-of-GDP spending cap, analyst Messmer told CNN.

The UK’s ambition to lead in NATO, doesn’t fit with spending in the middle of the pack among NATO allies, she said.

Russia’s invasion of Ukraine – and the subsequent pressure from Trump’s administration on European nations to boost their own military capabilities – has sparked a race among Europe’s key military powers to boost their readiness and counter the Russian threat should the White House pull its support for Kyiv.

The UK “cannot ignore the threat that Russia poses,” Starmer told the BBC on Monday. “Russia has shown in recent weeks that it’s not serious about peace, and we have to be ready.”

Starmer said Monday he intended to turn the UK into a “battle-ready, armor-clad nation with the strongest alliances, and the most advanced capabilities, equipped for the decades to come.”

Government MP and member of the British Parliament’s Defence Select Committee, Fred Thomas, told CNN that the review was a “bold plan,” and the first since the 1980s that argued for doing more, not less, with the UK’s military.

However, the British military of today is a long way from its Cold War ancestor. At under half the strength of the regular military in 1989, the British army is a shadow of its former self. In 1989, defense spending accounted for 4.1% of GDP.

“If you want to prepare for tomorrow’s war, you need to make sure you’re at least ready for today’s war. And we’re not ready for today’s war,” MP Thomas said.

The planners hope machines will make up for manpower.

As part of the UK military “fundamentally transforming how it works,” the review recommended enabling any sensor and weapon across the armed forces’ arsenal to work in tandem, using AI to predict threats and speed up decision-making.

Combining conventional armored forces with AI and “land drone swarms,” the review boasted of creating a military 10 times more lethal than the British military’s currently is.

Writing in the Financial Times MP Thomas on May 31, the lawmaker criticised the UK’s ministry of defence’s, “deep cultural and structural resistance to change,” but he said he saw reason to hope in the recommendations laid out in today’s review.

At times frank – the review highlighted how a focus on focus on ‘exquisite’ capabilities has masked the ‘hollowing out’ of the Armed Forces’ warfighting capability – the document still offered a somewhat rosy vision of the British armed forces.

This is at odds with much commentary in the British press, which has slammed the dwindling size, troubled and inefficient equipment procurement and failures of conduct plaguing the British military through its wars in Iraq and Afghanistan.

Analyst Messmer advised caution around some of the review’s promises.

“Ten times more lethal is something that sounds good, but I would really want to see more evidence,” she said, “I think it’s more marketing than anything else.”

Given decades of shrinking investment in the British military, questions have been raised over the deterrence that Britain’s conventional and nuclear weapons offer, particularly given its reliance on a US supply chain. In the past eight years, the UK has publicly acknowledged two failed nuclear missile tests, one of them in the waters off Florida, when dummy missiles didn’t fire as intended.



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Inside Ukraine’s audacious drone attack on Russian air bases

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CNN
 — 

Ukraine’s drone attack against Russian airfields was audacious and daring. But most of all, it was meticulously planned and flawlessly executed.

Kyiv struck where it could make a difference, damaging or destroying military aircraft that Moscow has been using to terrorize Ukrainian civilians with near daily aerial attacks.

The Ukrainian Security Service said 41 Russian aircraft were hit, including strategic bombers and surveillance planes, although it is unclear how many were taken completely out of action.

Justin Bronk, a senior research fellow at the Royal United Services Institute in London, said the attack was “a stunning success for Ukraine’s special services.”

“If even half the total claim of 41 aircraft damaged/destroyed is confirmed, it will have a significant impact on the capacity of the Russian Long Range Aviation force to keep up its regular large-scale cruise missile salvos against Ukrainian cities and infrastructure, whilst also maintaining their nuclear deterrence and signaling patrols against NATO and Japan,” he wrote in a note.

This is what we know about how the attack unfolded.

The attacks targeted four airfields deep inside Russia, with the farthest one, the Belaya base in Irkutsk region, some 4,500 kilometers (2,800 miles) from Ukraine’s border with Russia.

The other targets included the Olenya base near Murmansk in the Arctic Circle, more than 2,000 kilometers (1,200 miles) from Ukraine; the Diaghilev airbase in Ryazan Oblast, some 520 kilometers (320 miles) from Ukraine; and the Ivanovo air base, which is a base for Russian military transport aircraft, some 800 kilometers (500 miles) from the border.

A visual shared by the SBU, Ukraine’s security agency, also showed another base in the eastern Amur region as a target. It is not clear whether an attack on this base failed or was aborted.

It’s these huge distances from the border with Ukraine that likely made Russia complacent about protecting the sites.

Its most prized aircraft at the Belaya base were regularly parked in plain sight in the airfield, clearly visible in publicly available satellite images – including on Google Maps.

Moscow likely believed the distance itself was enough to keep the aircraft safe from Ukrainian attacks.

Russia maintains air superiority over Ukraine and while Kyiv’s allies have supplied Ukraine with some long-range missile systems, including US-made ATACMS and British-French Storm Shadows, neither has the range to strike this deep inside Russia.

Ukraine has been using drones against targets inside Russia, including in Moscow, but the low speed at which they travel makes them relatively easy for Russian air defenses to strike them.

This is where the audacity of the attack really played out: rather than trying to fly the drones all the way from the border, Ukraine managed to smuggle them right next to the sites it wanted to target and launched them from there.

This picture shows drones said to be used by Ukraine in its coordinated attacks on Russian air bases.

Russia’s radar and air defenses at these bases were not prepared for such a low-altitude and sudden attack.

The only effective way to stop an attack like this is with heavy machine guns. Russia has been using these against Ukrainian sea drones in the Black Sea.

But these were either not available or not deployed quickly enough at the air bases targeted by Ukraine on Sunday – most likely because Russia simply didn’t foresee this type of attack.

CNN was able to verify and geolocated photos and videos from the scenes, confirming their locations near the bases.

Russia’s Defense Ministry confirmed in a statement that the attacks – which it called “terror attacks” were launched from the vicinity of the airfields.

Ukraine’s President Volodymyr Zelensky said 117 drones were used in the operation.

According to the SBU, the drones were smuggled into Russia by its operatives. At some point, likely while already in Russia, the drones were then hidden inside mobile wooden sheds.

Photos obtained by CNN show the drones tucked just under the sheds’ metal roofs, slotted in insulation cavities.

The drones hidden in cavities of wooden sheds.
This handout photo from the Ukrainian Security Service shows wooden sheds in an industrial facility. (Note: The location and date of this image has not been independently verified and a portion of this image was blurred by the source.)

These wooden cabins were then placed on trucks and driven to locations near the bases.

Ukraine did not disclose how exactly it managed to get the vehicles into the vicinity of high-profile military targets without detection, but reports in Russian media suggested it was relatively simple.

Baza and Astra, two Russian Telegram channels, both reported that the trucks were bought by a Ukrainian man who lived in Russia who then simply paid a quartet of drivers to get them where he needed them.

Neither Russian nor Ukrainian authorities commented on these reports, but the Russian state news agency RIA reported that authorities in the Irkutsk region were searching for a man who was suspected of being involved in the attack. His name matched the name reported by Baza and Astra.

The Ukrainian Security Service said the operatives involved in the operation were safely back in Ukraine by the time the attacks started. Zelensky said they worked across multiple Russian regions spanning three time zones.

A senior source with Ukraine’s drone development program told CNN the pilots who flew the drones were probably nowhere near the locations from which they were launched.

“They would have likely setup an internet hub allowing the pilots to (control them) remotely, each rapidly deploying each FPV (first person view drones), hitting each target one by one.”

The source said the communication hub could be “a simple Russian cell phone” which is harder to track than other systems, such as Starlink that is used widely in Ukraine.

A source briefed on the matter confirmed the attack was carried out via Russian telecommunications networks.

Once the trucks were in place and the drones ready to go, the cabin roofs opened and the drones flew towards their targets.

A video of the attack in Russia’s southeastern Irkutsk region that was shared on social media and verified and geolocated by CNN shows two drones flying out of a truck.

They are seen heading towards the Belaya air base in the distance, where thick dark smoke is already billowing from a previous strike.

Another video from the same location shows the truck used to transport the drones on fire after what appears to be an explosion designed to self-destruct the truck.

Zelensky said on Sunday that the attack was in the making for one year, six months and nine days, and praised the security services for a “brilliant” operation.

Russian officials have downplayed the attack, saying strikes were repelled in the Ivanovo, Ryazan and Amur regions but that “several pieces of aircraft” caught fire after attacks in the Murmansk and Irkutsk regions. It added that the fires had since been extinguished.

It said there were no casualties. But while Russian authorities tried to downplay the attack, several high-profile Russian military bloggers have been vocal in their criticism.

Rybar, a high-profile Russian military blog, said the attack caused a “tragic loss for the entire Russian air fleet” and was a result of “criminal negligence.”

The SBU said the strikes caused an estimated $7 billion in damages and hit 34% of Russia’s strategic cruise missile carriers at its main air bases – a claim CNN cannot independently verify.

A satellite image shows damage to aircrafts at an airfield following Ukrainian drones attack targeting Russian military airfields in Stepnoy, Irkutsk region, Russia, on June 2.

Ukraine said it destroyed several TU-95 and Tu-22M3 strategic bombers and one of Russia’s few remaining A-50 surveillance planes.

A source briefed on the matter said 27 Tu-95, four Tu-160, two Tu-22M3 and “probably” an A-50 were hit.

The Tu-22M3 is Russia’s long-range missile strike platform that can perform stand-off attacks, launching missiles from Russian airspace well behind the front lines to stay out of range of Ukrainian anti-aircraft fire.

Russia had 55 Tu-22M3 jets and 57 Tu-95s in its fleet at the beginning of the year, according to the “Military Balance 2025” report from the International Institute for Strategic Studies think tank.

The Tu-95 joined the Soviet Union air force in the 1950s, and Russia has modified them to launch cruise missiles like the Tu-22.

Bronk, the RUSI expert, said that replacing some of these aircraft would be very difficult for Russia because they have not been produced for decades.



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Huge eruption on Italy’s Mt. Etna leaves tourists fleeing volcano

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CNN
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A massive eruption at Mt. Etna forced tourists to flee the volcano on Monday after a plume of high temperature gases, ash and rock “several kilometers high” billowed into the air above them, Italian authorities said.

Footage posted on social media shows long lines of people hurrying downhill away from the explosion while the owner of one tour company told CNN they had 40 people on the Sicilian volcano when it erupted.

Giuseppe Panfallo, a guide with Go Etna, filmed his tour group huddled together with an enormous ash cloud in the distance.

“We were nearly grazed, look at this cloud here. We were two steps away and thank goodness we have a responsible guide with us,” he says in the video shared with CNN.

“It arrived all at once, an immense smoke, immense, immense roar.”

About a dozen tour operators work on Etna at any given time, the Sicilian Civil Protection Agency told CNN, adding that they are contacting all of them to ensure everyone is accounted for.

The volcano on the Italian island is a popular tourist destination visited by 1.5 million people a year, many of whom trek almost all the way to its summit.

Although Mt. Etna is one of the world’s most active volcanos, there hasn’t been an eruption of this magnitude since 2014, according to the National Institute of Geophysics and Volcanology Observatory.

These eruptions often stop as quickly as they start, the observatory added, though explosions are still increasing in intensity and the mountain is spewing out a very small amount of lava and fire.

Smoke billows from Mt.Etna as tourists fled its latest eruption.

This eruption, which began overnight, produced explosions heard as far away as Taormina and Catania, which are about 50 kilometers and 40 kilometers (31 miles and 25 miles) away, respectively, according to several witnesses who posted footage on social media.

The observatory said that the preliminary observations show a “partial collapse” of the northern flank of the volcano’s southeast crater, which has produced spectacular lava flows during recent eruptions in the last few months.

None of the ash is expected to fall on Catania, the city at the foot of the volcano, though authorities are prepared to alert people to take cover if the wind changes, the city’s mayor Enrico Tarantino told CNN.

Nearby airports in Catania and Palermo remain open too as, currently, the wind is not blowing the ash in that direction. The Sicilian Civil Protection Agency instructed all flight travel to avoid the area and some flights from Catania have been directed to Palermo, according to Flight Radar Data.

Authorities have closed many of the roads heading up to the volcano to prevent people trying to get close to the eruption and from getting in the way of first responders and emergency vehicles, Tarantino added.

Around 1 p.m. local time (7 a.m. ET), the volcano started spewing hot lava, which is more in line with previous eruptions, an observatory spokesman said.

The observatory defined the volcanic activity as a pyroclastic eruption, resulting in a “significant increase in volcanic tremor and the formation of an eruptive column containing a lethal mixture of high-temperature gases, lava grains, volcanic ash, and rock fragments of various sizes that rapidly descends down the slopes of the volcano.”



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