World

BRUSSELS — The spectre of a transatlantic trade war is also fuelling hopes of a silver lining in Europe: that a commerce deal with four South American countries could get a final green light despite longstanding French opposition.

Forced to come to terms with the growing cracks in its biggest trading relationship, worth 1.6 trillion euros, the EU believes it's time to chase opportunities elsewhere.

"The global balance is shifting, and we Europeans need [new trading partners] very quickly," incoming German chancellor Friedrich Merz said last weekend.

Such is Merz's determination; he suggested French President Emmanuel Macron could be swayed into a U-turn to back the EU accord with Mercosur bloc members Argentina, Brazil, Paraguay and Uruguay, despite strident opposition from France's farmers.

Twenty-five years in the making, the deal to create a 700-million-customer free-trade area was clinched last December by the European Commission, but still needs to be signed by member states and the EU parliament.

Macron would "now tend" to look more favourably on the Mercosur accord, Merz asserted.

Paris has so far slapped down such suggestions. "The draft deal hasn't changed and therefore is unacceptable as it stands," a French diplomatic source said.

But EU officials believe they can convince countries opposed to the Mercosur deal through offers of financial support, for example, for farmers affected by rising imports.

With or without France? 

Faced with an unpredictable US partner, the EU has ramped up efforts to cut more trade deals -- deciding last week to launch talks on an agreement with the United Arab Emirates, for example.

"In an unstable world, partnerships with trusted allies around the world with clearly defined rules for mutual gain are more valuable than ever," an EU spokesman has said.

There is a growing sense in Brussels that in the current climate French opposition, even if it holds,   may not be insurmountable.

To be approved, the Mercosur deal must receive the backing of at least 15 of 27 EU states, representing a minimum of 65 per cent of the population.

France had hoped to form a blocking minority but "given the context, it probably won't", a European Commission official said.

'Cushion' tariff shocks 

While Poland still opposes the Mercosur deal, there appears to be a change of heart among some in Vienna, another high-profile opponent, after Trump imposed sweeping tariffs.

Austrian Economy Minister Wolfgang Hattmannsdorfer now supports the agreement. "We need it now," he said, even though the country's three-way coalition government remains officially against.

Pushed on the matter, French Agriculture Minister Annie Genevard admitted this week it was a source of unease between France and Germany.

But she vowed it was out of the question to "sacrifice French agriculture on the altar of an agreement at any cost".

French resistance is also being tested at home: the country's central bank governor Francois Villeroy de Galhau briefed Macron last week that such agreements "could further cushion tariff shocks linked to US trade policy".

In the case of the Mercosur deal, it would make it easier for the EU to export cars, machinery, pharmaceutical products and alcoholic beverages.

In exchange, the South American nations would be able to export meat, sugar, rice and soybeans, which worries European farmers concerned about cheaper goods pricing them out.

Farmers are crying foul over supposedly less stringent regulations on the sector and have staged protests across Europe.

 Macron under pressure 

Brussels has promised to reassure all member states and wants to present a text before the end of summer for final approval to parliament,  where its fate is also uncertain.

"We don't know which way it will go" in the event of a vote, French centrist lawmaker Marie-Pierre Vedrenne told AFP.

Vedrenne said continued opposition "wouldn't be very serious or responsible".

But she believes Macron's position hasn't changed, explaining that opposition to Mercosur has "become a matter of national unity".

One EU official went further.

"The French government would fall" if it supported the deal, the official said, after snap elections last year produced a hung parliament with Macron's centrists in the minority.

Poland currently holds the rotating EU presidency and as one of the countries most opposed, it is not expected to push for a Mercosur vote.

But when Denmark takes the reins in July, expect the inflammatory issue to return to the agenda.

WASHINGTON — US President Donald Trump doubled down Wednesday on a funding standoff with top university Harvard that has become a focal point of his war against elite educational institutions.

Harvard has stood out for defying Trump's attempts to force it to submit to wide-ranging government oversight, in contrast to several other universities that have folded under intense pressure from the White House.

"Harvard can no longer be considered even a decent place of learning, and should not be considered on any list of the World's Great Universities or Colleges," Trump said on his Truth Social platform.

"Harvard is a JOKE, teaches Hate and Stupidity, and should no longer receive Federal Funds."

On Tuesday, Trump threatened to strip the university of its tax-exempt status as a nonprofit educational institution, after earlier freezing $2.2 billion in federal funding.

Trump has demanded that the university change the way it runs itself, including how it selects students and its hiring practices, and that it submit itself to "audits" of academic programs and departments.

On Tuesday, Harvard President Alan Garber said the school would not "negotiate over its independence or its constitutional rights."

The US president and his administration have justified their pressure campaign on universities as a reaction to what they say is uncontrolled anti-Semitism and support for the Palestinian armed group Hamas.

The anti-Semitism allegations are based on protests against Israel's war in Gaza that swept across campuses last year.

The White House has also strong-armed dozens of universities and colleges with threats to remove federal funding over their policies meant to encourage racial diversity among students and staff.

BEIJING — China told Washington on Wednesday to "stop threatening and blackmailing" after US President Donald Trump said it was up to Beijing to come to the negotiating table to discuss ending their trade war.

Trump has slapped new tariffs on friend and foe but has reserved his heaviest blows for China, with 145 percent on many Chinese imports even as Beijing has retaliated with levies on US goods of 125 percent.

"If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit," foreign ministry spokesman Lin Jian said.

"China's position has been very clear. There is no winner in a tariff war or a trade war," Lin said. "China does not want to fight, but it is not afraid to fight."

This year, Trump has imposed an additional 145 per cent tariff on many goods from China, stacking atop duties from previous administrations.

Trump initially imposed 20 per cent tariffs on imports from China over its alleged role in the fentanyl supply chain, then added 125 per cent over trade practices that Washington deems unfair.

His administration has, however, given temporary reprieve for certain tech products -- like smartphones and laptops -- from the latest levy.

The White House said Tuesday it was up to Beijing to make the first move towards ending the dispute, which economists warn could cause a global recession.

"The ball is in China's court. China needs to make a deal with us. We don't have to make a deal with them," said a statement from Trump read out by Press Secretary Karoline Leavitt.

China growth 

China on Wednesday said its economy grew a forecast-beating 5.4 percent in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies.

"The escalation happening in April is going to be felt in the second-quarter figures as the tariffs will send stateside firms looking to other suppliers, impeding Chinese exports and slamming the brakes on investment," Heron Lim from Moody's Analytics told AFP.

Japan's envoy for talks slated for Wednesday in Washington said meanwhile that he was optimistic of a "win-win" outcome for both countries.

Ryosei Akazawa, who was due to meet US Treasury Secretary Scott Bessent, said he would "protect our national interest".

On Wednesday Honda said it will shift production of its hybrid Civic model from Japan to the United States, although this represents a very small part of its global output.

The rationale behind the decision "is not a single issue", a spokesman for the Japanese firm said. "The decision is based on the company's policy since its foundation that we produce cars where the demand is."

South Korea, another major exporter in particular of semiconductors and cars, said that finance minister Choi Sang-mok would meet Bessent next week.

"The current priority is to use negotiations... to delay the imposition of reciprocal tariffs as much as possible and to minimise uncertainty for Korean companies operating not only in the US but also in global markets," Choi said Tuesday.

Since the start of the year, Trump has imposed steep duties on imports from China, alongside a 10 percent "baseline" tariff on many US trading partners.

His administration recently widened exemptions from these tariffs, excluding certain tech products like smartphones and laptops from the global 10 per cent tariff and latest 125 per cent levy on China.

Chip stocks across Asia slumped after Nvidia said it expects a $5.5-billion hit due to a new US licensing requirement on the primary chip it can legally sell in China.

Trump also ordered a probe Tuesday that may result in tariffs on critical minerals, rare-earth metals and associated products such as smartphones.

WASHINGTON — US President Donald Trump's special envoy said Monday that Russian leader Vladimir Putin was open to a "permanent peace" deal with Ukraine, following talks seeking to end the more than three-year war.

Trump has been pressing Moscow and Kyiv to agree to a ceasefire but has failed to extract any major concessions from the Kremlin, despite repeated negotiations between Russian and US officials.

On Friday, Trump's special envoy Steve Witkoff met with Putin in Saint Petersburg -- their third meeting third since the Republican leader returned to the White House in January.

Witkoff said during a Fox News interview televised Monday that he sees a peace deal "emerging," and that two key Putin advisers -- Yuri Ushakov and Kirill Dmitriev -- were in the "compelling meeting."

"Putin's request is to get to have a permanent peace here. So beyond the ceasefire, we got an answer to that," Witkoff said, acknowledging that "it took a while for us to get to this place."

"I think we might be on the verge of something that would be very, very important for the world at large."

He added that business deals between Russia and the United States were also part of the negotiations.

"I believe there's a possibility to reshape the Russian-United States relationship through some very compelling commercial opportunities, that I think give real stability to the region too," he said.

Despite a flurry of diplomacy, there has been little meaningful progress on Trump's main aim of achieving a Ukraine ceasefire.

Putin last month rejected a joint US-Ukrainian proposal for a full and unconditional pause in the conflict, while the Kremlin has made a truce in the Black Sea conditional on the West lifting certain sanctions.

SUMY, Ukraine — Russia said Monday that its missiles hit a meeting of Ukrainian army commanders in Sumy, accusing Ukraine of using civilians as a "human shield" after Kyiv said the attack Sunday killed at least 34 people in one of the deadliest strikes of the entire war.

US President Donald Trump -- who is pushing for a ceasefire -- called the attack a "horrible thing" and suggested Russia had "made a mistake".

Commenting on the strike for the first time after more than 24 hours, Russia's defence ministry said its army launched two ballistic Iskander-M missiles at "the place of a meeting of command staff", claiming that it had killed 60 Ukrainian soldiers.

The Kremlin rejected that its army had targeted civilians or that there had been any kind of "mistake".

"Our army hits only military and military-related targets," Kremlin spokesman Dmitry Peskov told reporters when asked about the strike and Trump's comments.

Russia's defence ministry appeared to concede there were civilian casualties, but placed the blame on Ukraine.

"The Kyiv regime continues to use the Ukrainian population as a human shield, placing military facilities and holding events with the participation of soldiers in the centre of a densely populated city," the ministry said.

Russia has made similar accusations since it invaded Ukraine in February 2022.

Ukraine's emergency services said the attack killed 34 people, including two children.

One witness told AFP she heard the two explosions.

"A lot of people were very badly injured. A lot of corpses," she said, struggling to speak.

People ran for cover amid burning cars and the dead were seen covered in silver sheets at the scene, where rescuers worked through the rubble of a building near a destroyed trolleybus.

The strike on Sumy came less than 48 hours after Trump's envoy Steve Witkoff held talks with Putin in Saint Petersburg.

The Kremlin on Monday called the meeting "extremely helpful and very effective", without elaborating on the discussions.

Ukraine's European allies meanwhile have condemned the Russian attack on Sumy.

British Prime Minister Keir Starmer said he was "appalled", and his Italian counterpart Giorgia Meloni called it a "cowardly" act by Russia.

France's foreign ministry said Monday that the attack -- along with one a week earlier that killed nine children and nine adults in Kryvyi Rig -- constituted "war crimes".

Germany's chancellor-in-waiting Friedrich Merz on Sunday described the attack as "a serious war crime, deliberate and intended".

 'Further escalation' 

The Kremlin on Monday criticised Merz for saying he was open to supplying Ukraine with Taurus missiles.

"He is agitating on the side of toughening his position and in favour of various steps that can -- and will -- inevitably lead to a further escalation of the Ukraine situation," Kremlin spokesman Dmitry Peskov said.

"Unfortunately, European capitals are really not inclined to look for ways of reaching peace talks, they are rather inclined to further provoke the continuation of the war," Peskov added.

Separate Russian strikes on the northeastern region of Kharkiv killed four elderly residents, local officials said Monday.

Moscow has stepped up its pressure on the regions of Sumy and Kharkiv this year, and Ukraine's army leaders have warned of a fresh offensive in the area.

Russia has pushed Ukraine out of all but 50 square kilometres of its western Kursk region, which borders Ukraine's Sumy region, according to an AFP analysis of Institute for the Study of War data.

Moscow's army has also captured several border settlements and controls around 95 square kilometres in the Sumy region -- up from virtually nothing at the start of 2025.

WASHINGTON — El Salvador's President Nayib Bukele assured Donald Trump on Monday that he would not return a man mistakenly deported from the United States, as the pair bonded over Trump's scheme to send migrants to a notorious prison in the Central American country.

Trump gave a warm welcome in the Oval Office to 43-year-old Bukele, the self-proclaimed "world's coolest dictator" who is now the US president's key ally in his controversial push to deport illegal migrants.

But the pair faced questions over the case of a father who was mistakenly deported to the Salvadoran mega-prison -- and whose return a US court has ordered the Trump administration to facilitate.

"Of course, I'm not going to do it," Bukele told reporters when asked if he would send the man, Kilmar Abrego Garcia, back to the United States.

"The question is preposterous.... I don't have the power to return him to the United States."

Trump and Bukele, who wore a dark T-shirt under a suit, spent much of the meeting complimenting each other on their migration and crime policies.

Known for his stylish dress sense and social media savvy, Bukele is broadly popular at home for clamping down on once rampant drug gangs that terrorized El Salvador.

But the Salvadoran leader is accused of overseeing mass human rights violations, epitomized by a huge, brutal prison known as CECOT.

Trump's immigration policies focused on what he says is the threat of a gang-led crime wave in the United States, are meanwhile among his most popular, receiving much higher ratings than on the economy.

"You are helping us out, and we appreciate it," 78-year-old Trump told Bukele.

Trump also reiterated that he was even considering deporting some US citizens who commit violent crimes to El Salvador, saying "I'm all for it" and asking Attorney General Pam Bondi to look into the idea.

'Administrative error' 

Trump and Bukele also share a taste for conservative, strongman-style politics. They spent several minutes criticizing the media and then talking about the issue of transgender athletes in women's sprts.

Shortly after Trump's inauguration for a second term, Bukele made the extraordinary offer to take in prisoners from the United States, in exchange for a fee of $6 million.

Trump took the Salvadoran leader up on his proposal, sending more than 250 migrants there -- a majority of them under a rarely used wartime law dating to 1798, which stripped the deportees of due process.

Slickly produced footage of their arrival -- including chained and tattooed men having their heads shaved and being frog-marched by masked guards -- was widely promoted by both the Salvadoran and US governments.

The Trump administration contends that the migrants are members of criminal gangs designated by the United States as terrorist organizations, including El Salvador's MS-13 and Venezuela's Tren de Aragua.

However, relatives of several of the men contend they have no connection to organized crime and in some cases had been swept up simply because they had tattoos unrelated to any gang activity.

The expulsion to El Salvador of Abrego Garcia has set off a major legal crisis, after the Trump administration admitted he had been deported in an "administrative error."

A federal judge ordered the government to "facilitate" Abrego Garcia's return to the United States, but Trump officials contend he is now solely in Salvadoran custody, leaving the man in legal limbo.

Despite the partnership, El Salvador was among the dozens of US trade partners that the Trump administration slapped with 10 percent tariffs earlier this month.

The United States is the main destination for Salvadoran exports. Of the nearly $6.5 billion in goods exported from El Salvador in 2024, $2.1 billion went to the United States, including clothing, sugar and coffee, according to the central bank.

But Trump and Bukele also share a fondness for cryptocurrency, with El Salvador becoming the world's first country to establish bitcoin as legal tender in 2021.