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Trump, Merz discuss trade, NATO spending and Russia’s war on Ukraine

German Chancellor Friedrich Merz has demanded that Russia put more pressure on it to put an end to its three-year-old conflict with Ukraine.

At the start of their meeting on Thursday at the Oval Office, Merz told US President Donald Trump, “You know that we supported Ukraine and that we are looking for more pressure on Russia.”

Trump likened the conflict to a fight between two young children who despise one another, while Merz put forth the claim that “Germany was on the side of Ukraine.”

Trump said that “sometimes it’s better to let them fight for a while before ripping them apart.” He added that in their phone conversation on Wednesday, he admitted to having spoken with Russian President Vladimir Putin about that analogy.

When Trump appeared to be seated next to each other, Merz remarked that both he and Trump shared the same views and that the US president was the “key figure” in the fight against the bloodshed.

Kimberly Halkett, a journalist for Al Jazeera, stated that the two men must end the war, but how that happens “seems to be a point of contention.”

The German chancellor said in Washington, DC, “What we saw there was the German chancellor suggesting and pointing out that Russia continues to attack civilian targets,” whereas Germany has focused solely on military targets inside Russia.

Halkett added that Vladimir Putin said he would attack regardless of the outcome of the meeting and that Trump admitted during the meeting that he had “implored the Russian president not to retaliate for that attack that took place over the weekend.”

A “decent” relationship is what

The two leaders sat down in person for the first time at Thursday’s meeting. The two leaders planned to discuss topics like Ukraine, trade, and NATO spending after making pleasantries and Merz presented Trump with a gold-framed birth certificate of the US president’s grandfather, Friedrich Trump, who immigrated from Germany.

Since Merz took office on May 6, Trump and Merz have spoken frequently by phone, either bilaterally or with other European leaders. According to German officials, Merz wants to avoid the hostility that predominated Trump’s relationship with Angela Merkel during his first term, and that the two leaders are beginning to “define” a “decent” relationship.

The 69-year-old Merz, who was elected after taking over her party after she left politics, has a strong business background.

Merz has taken to the streets of Ukraine to meet with other European leaders days after taking office and meeting with Zelenskyy in Berlin last week.

He has praised Trump for his support for a perpetual ceasefire while expressing his opposition to the concept of “dictated peace” or “subjugation” of Ukraine and calling for more sanctions against Russia.

Trump stated in their first phone call since Merz’s appointment as chancellor that he would support efforts to bring about peace in Germany and other European nations, according to a readout from the German government. Additionally, Merz added that last month, “I will continue to make every effort to bring the greatest possible unity between the European and American partners” because it is of paramount importance that the political West not let itself be divided.”

Germany, in contrast to the United States, received military assistance from Germany under Merz’s immediate predecessor, Olaf Scholz. Merz has pledged to continue giving back and last week pledged to support Ukraine in developing its own long-range missile systems that are unrestricted in any way.

After Russia launched its full-scale invasion of Ukraine, Merz’s government is now stepping up its military support strategy. Berlin was the target of Trump’s ire during his first term because he failed to meet the NATO’s current goal of putting at least 5% of GDP toward defense. Trump is now demanding at least 5% from allies.

The White House spokesman said that Germany has a “good opportunity” to commit to passing that 5-percentage at the upcoming NATO summit in the Netherlands later this month.

Trump and Merz were referred to as both “difficult” and “difficult,” which he suggested was a compliment during their meeting on Thursday. He claimed that Berlin was investing more money in defense and that US troops would continue to be stationed in Germany.

“OK with tariffs,”

After a two-year slump, Merz has made it his top priority to rebuild Germany’s largest economy, which is now Europe’s largest. Trump’s tariff threats pose a potential challenge for a nation whose exports have been a key strength, but he wants them to be a “locomotive of growth.” The economy is projected to remain stagnant until 2025.

According to the Census Bureau, Germany exported goods worth $ 160 billion to the US last year. Trump wants to erase the trade deficit that the US sent to Germany, amounting to $85 billion more.

Merz stated to reporters on Thursday morning, “Germany is one of the country’s biggest investors.” In the USA, only a few nations invest more than Germany. In terms of foreign direct investment, we are in third place.

Trump said he would be okay with an agreement or with tariffs because the US and the EU are currently in talks to reach a trade agreement, which would be crucial for Germany’s export-heavy economy.

Tesla shares slide as CEO Musk and President Trump have a public face-off

Tesla’s CEO and Donald Trump’s self-declared “first buddy” has recently raised concerns about the president’s extensive tax legislation. Investors are starting to notice.

Tesla’s stock dropped nearly 9 percent on Thursday, a day that would otherwise be devoid of news for the electric car manufacturer. Experts speculate that Musk’s increasingly pointed rhetoric suggests a strain in the relationship that has benefitted his sprawling business empire.

Trump claimed on Thursday that Musk was upset that the bill removed the EV mandate.

“Look, Elon and I had a wonderful relationship,” she said. The president said, “I don’t know if we will any more.”

He described me in the most beautiful way. And he has never criticized me personally. Next, that will be. However, I’m disappointed.

Tesla shares dropped significantly as a result of Trump’s comments.

Not long after declaring he would spend more time with his companies and less time in the White House, the world’s richest man, a key figure in the Department of Government Efficiency’s (DOGE) cost-cutting initiative for several months, has criticized the bill.

Musk has demanded that the legislation be overturned on his social media platform X, calling it a “disgusting abomination.”

The largest Republican donor in the 2024 election cycle, Musk, stated on X on Tuesday, “It more than defeats all the cost savings that the DOGE team managed to achieve at great personal cost and risk.”

Some Tesla buyers have been turned off by Musk’s leadership of DOGE and his ties to the Trump administration. Even as overall electric vehicle purchases continue to rise, sales of his EVs have fallen in  in , Europe, , China, and important US markets like California.

In recent weeks, Musk has started to slowly break away from the White House, which has been stung in part by Tesla’s recent protests.

“Elon’s politics continue to harm the stock,” he said. First, he sided with Trump, which upset many potential Democratic buyers. He has now turned his back on the Trump administration, according to Chief Stock Trader Network, a Tesla shareholder.

SpaceX and Starlink, Musk’s other companies, are renowned for dominating their respective markets, but their interactions with Trump have also drawn scrutiny.

These two businesses frequently serve as the default partner for commercial launches and satellite internet deployment, and Russian governments have increasingly turned to Starlink, with Musk’s connections facilitating regulatory approvals.

Since May 27, Tesla’s stock has fallen 12 percent, roughly in line with his decision to stop doing business in Washington.

Since his support for Trump in his re-election campaign in mid-July 2024, the stock has increased by 169 percent to close at the end of December. As the “Tesla Takedown” protest movement grew in intensity, a 54 percent selloff followed.

Tax bill

By the end of 2025, the popular $7,500 electric vehicle subsidy is proposed in the House of Representatives budget bill. Trump promised to end the subsidy during the transition, but Tesla and other carmakers have relied on incentives for years to smear demand.

According to JP Morgan analysts, separate Senate legislation that targets California’s EV sales mandates could cause Tesla to lose $1.2 billion to its full-year profit, along with an additional $2.2 billion to offset regulatory credit sales.

With the expiration of the EV credits, Tesla and Elon’s other businesses risked, according to Jed Ellerbroek, portfolio manager at Argent Capital Management.

Dennis Dick noted that Musk’s frequent attacks have upset potential Republican Tesla buyers. On Wednesday, a White House official described the actions of Tesla’s CEO as “infuriating.”

This week, the billionaire joined Senate Republican deficit hawks in saying that the House bill does not reduce spending enough.

Indonesia beat China to boost World Cup hopes in AFC qualifying

With a nervy 1-0 victory, which ended China’s hopes of qualifying, Indonesia have continued their efforts to qualify for the FIFA World Cup for only the second time in their history.

In the opening match of the Asian Football Confederation qualifier against Jarkarta on Thursday, Oli Romeny scored the only goal from the penalty spot.

After Yang Zexiang demolished Ricky Kambuaya just before half-time, a spot kick was awarded. Given the expectations the Chinese had, the hosts’ defense was under increasing pressure.

Australia made a huge step forward in the group’s first kickoff by defeating Japan, who had already qualified, 1-0.

In the 90th minute, Aziz Behich scored the winner through a curling effort from the box.

In Group C’s final kickoff game, Saudi Arabia hosted Bahrain, with nothing but a win for the hosts going to guarantee Australia’s progress. Bahrain needed a win to move up above Indonesia to the playoffs to advance.

[Ajeng Dinar Ulfiana/Reuters] Indonesia’s Ole Romeny scores their first goal from the penalty spot past Wang Dalei from China.

Indonesia’s first sighter was on Kambuaya, but the effort from range went too far for the right-hand upright.

Wang Yudong, who made his international debut at age 18, was the brightest player in China’s opening match and headed wide after a counter under the weight of the hosts’ mounting pressure.

However, Han Pengfei’s header from Serginho’s corner fired over the bar to give China the best chance.

Romeny slotted the crucial kick from the spot after two close calls, one of which was just wide and the other too close to the keeper.

‘Premeditated genocide’: Brazil’s Lula slams Israel over Gaza war

Brazilian President Luiz Inacio Lula da Silva accused Israel of carrying out “premeditated genocide” in Gaza during a visit to Paris, as it emerged the military had killed at least 52 people in its latest onslaught in the besieged coastal enclave where a crippling blockade is fuelling starvation.

“What is happening in Gaza is not a war. It’s a genocide being carried out by a highly prepared army against women and children”, said Lula at a joint news conference in Paris with French President Emmanuel Macron on Thursday.

“]It is] a premeditated genocide from a far-right government that is waging a war, including against the interests of its own people”, he said of Israel’s 20-month offensive, which has killed at least 54, 607 Palestinians so far, according to the enclave’s Health Ministry.

At least 52 people were killed on Thursday, including women and children, according to medical sources, who spoke to Al Jazeera, amid growing concern about deadly incidents at aid distribution sites run by the controversial Gaza Humanitarian Foundation since last week.

While Lula has previously used the term “genocide” to characterise Israel’s actions in Gaza, Macron has reserved judgement, saying last month that it was not for a “political leader to use the term, but up to historians to do so when the time comes”.

The Brazilian leader’s condemnation of Israel’s offensive came as German Foreign Minister Johann Wadephul told his visiting Israeli counterpart, Gideon Saar, to allow more humanitarian aid into the enclave in accordance with “prevailing international law”.

Last week, Wadephul had said Germany was assessing “whether what is happening in Gaza is in line with international law” and that arms sales to Israel would be evaluated on this basis.

Wadephul also said he was “concerned about the extremely tense situation in the West Bank”, decrying the Israeli government’s announcement that it would allow 22 more settlements in the occupied territory, saying it threatened the two-state solution further.

On Thursday, King Abdullah of Jordan praised Spain for recognising Palestine and calling for an end to the war in Gaza during a meeting with King Felipe in Madrid. He said work was underway to gain European support.