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UK made fewer vehicles for the fifth straight month in May as Trump tariffs bite

UK made fewer vehicles for the fifth straight month in May as Trump tariffs bite
Technicians work on a Rolls-Royce engine prior to it being installed in a car on the production line of the Rolls-Royce Goodwood factory, near Chichester, Britain. (REUTERS/File Photo)
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UK made fewer vehicles for the fifth straight month in May as Trump tariffs bite

UK made fewer vehicles for the fifth straight month in May as Trump tariffs bite
  • UK production dropped 32.8 percent from a year ago, marking the worst percentage drop in May output since 1949
  • US President Trump’s 25 percent tariffs on imported automobiles and parts have disrupted global supply chains

LONDON: Britain’s vehicle production declined from a year ago for the fifth successive month in May, industry data showed on Friday, as factory disruptions and US tariffs weighed on automakers.
UK car and commercial vehicle production dropped 32.8 percent from a year ago to 49,810 units last month, marking the worst percentage drop in May output since 1949, excluding the COVID-19 pandemic-hit 2020, according to data from the Society of Motor Manufacturers and Traders.
Exports to the UK’s two biggest markets, the EU and the US, declined by 22.5 percent and 55.4 percent respectively, SMMT said.
US President Donald Trump’s 25 percent tariffs on imported automobiles and parts, imposed in March, have disrupted global supply chains, added hundreds of millions of dollars in costs for manufacturers, prompted export suspensions and pushed several automakers, especially in Europe, to consider shifting production to the US to avoid the duties.
British manufacturing also contracted in May, as output, orders and employment declined.
Still, SMMT chief Mike Hawes said the UK’s trade deals, especially with the US, and a more positive relationship with the EU, provided some optimism.
The US and UK reaffirmed a previously agreed trade deal during the G7 summit in Canada earlier this month, under which up to 100,000 UK-made cars a year can enter the US at a 10 percent tariff, lower than the 25 percent rates other countries face.
In May, Britain reached a trade deal with India to lower tariffs and set quotas on auto imports, while also moving closer to the European Union on cooperation in defense, energy and agriculture.
Car production, excluding commercial vehicles, dropped by 31.5 percent in May, largely driven by model changeovers, restructuring and the impact of US tariffs, SMMT said.


Ukraine has halted Russia's advance in the northern Sumy region, commander says

Ukraine has halted Russia's advance in the northern Sumy region, commander says
Updated 6 sec ago

Ukraine has halted Russia's advance in the northern Sumy region, commander says

Ukraine has halted Russia's advance in the northern Sumy region, commander says
  • The outnumbered Ukrainian army has relied heavily on drones to keep the Russians back
  • Ukrainian successes in Sumy have prevented Russia from deploying more troops to other areas of the front line

KYIV, Ukraine: Ukrainian forces have halted Russia’s recent advance into the northern Sumy region and have stabilized the front line near the border with Russia, Ukraine’s top military commander said Thursday.
Col. Gen. Oleksandr Syrskyi, commander in chief of Ukraine’s armed forces, said that Ukrainian successes in Sumy have prevented Russia from deploying about 50,000 Russian troops, including elite airborne and marine brigades, to other areas of the front line.
His claim couldn’t be independently verified, and Russian officials made no immediate comment.
Russian forces have been slowly grinding forward at some points on the roughly 1,000-kilometer (620-mile) front line, though their incremental gains have been costly in terms of troop casualties and damaged armor. The outnumbered Ukrainian army has relied heavily on drones to keep the Russians back.
Months of US-led international efforts to stop the more than three years of war have failed. Amid the hostilities, the two sides have continued swaps of prisoners of war agreed on during recent talks between their delegations in Istanbul.

This handout photograph taken and released by the Ukrainian military on June 26, 2025, shows barbed wire on the front line in Sumy region. (AFP)

Russia’s Defense Ministry and Ukrainian authorities said another exchange took place on Thursday.
Ukraine’s coordination headquarters for POWs said the swap included injured soldiers and those with health complaints. The youngest is 24 and the oldest is 62, it said, adding that more exchanges are expected soon.
Sumy, the city which is the capital of the Ukrainian region of the same name, had a prewar population of around 250,000. It lies about 20 kilometers (12 miles) from the front line. Russia’s push into the region earlier this year compelled Ukraine to strengthen its defenses there.
A special defense group has been formed to improve security in Sumy and surrounding communities, Syrskyi said, with a focus on improving fortifications and accelerating construction of defensive barriers.
In March, Ukrainian forces withdrew from much of Russia’s neighboring Kursk region, parts of which they had controlled after a surprise cross-border attack in August.
That retreat enabled Russia to launch a counteroffensive that advanced between 2-12 kilometers (1-7 miles) into Ukrainian territory, according to different estimates.
Ukrainian officials say fierce fighting is also taking place in the eastern Donetsk region.
The Russian Defense Ministry said Thursday that its forces have captured two villages, Novoserhiivka and Shevchenko, in Donetsk.
Capturing Shevchenko marked an important stage in Russia’s ongoing offensive that is trying to break into Ukraine’s Dnipropetrovsk region, which borders Donetsk and is a major industrial center, according to the ministry.
Meanwhile, the two sides continued to launch long-range strikes.
The Russian ministry said 50 Ukrainian drones were downed over nine regions overnight, including three over the Moscow region.
Ukraine’s air force said that Russia deployed 41 Shahed and decoy drones across the country overnight, wounding five people. It said that 24 drones were either intercepted or jammed.
 


UN warns of Sudanese conflict ‘spill over’ in C.Africa

UN warns of Sudanese conflict ‘spill over’ in C.Africa
Updated 27 June 2025

UN warns of Sudanese conflict ‘spill over’ in C.Africa

UN warns of Sudanese conflict ‘spill over’ in C.Africa

United Nations, US: The UN peacekeeping chief warned Thursday about potential spill over from Sudan’s war to undermine nascent stability in the Central African Republic, including paramilitary operations.
Last week, an armed group attacked a patrol by the UN mission in the CAR, killing a Zambian peacekeeper.
Among the world’s poorest countries, the CAR shares a border with Sudan, which has been plunged into devastating conflict between the regular army and the paramilitary Rapid Support Forces since April 2023.
Under-Secretary-General for Peace Operations Jean-Pierre Lacroix highlighted the armed group attacking the CAR mission during a Security Council meeting Thursday, and a report released by UN Secretary General Antonio Guterres’s office noted attacks in the region as well.
“The security situation remains fragile in border areas,” Lacroix told the UN Security Council, referring to the CAR.
“In the northeast, on the border with Sudan, instability is characterized by the overflow of Sudanese conflict, including incursions by armed groups,” he added.
The Central African Republic is also reckoning with rising numbers of Sudanese refugees fleeing the conflict, with the UN report estimating 36,642 living in the country as of June 1.
“The Sudanese conflict is a real threat. Armed groups are crossing our borders, recruiting young people and compromising our sovereignty,” said CAR UN ambassador Marius Aristide Hoja Nzessioue.
Lacroix said the Central African Republic was at a “delicate juncture,” adding that support for the progress made toward upcoming elections from the international community “remains essential.”
“If these efforts are sustained...the Central African Republic has the potential to become a true success story — not only for Central Africans, but also for Peacekeeping and for this Security Council,” Lacroix said.


Lawmakers scrap ‘revenge’ tax provision from Trump’s big bill after Treasury requests its removal

Lawmakers scrap ‘revenge’ tax provision from Trump’s big bill after Treasury requests its removal
Updated 27 June 2025

Lawmakers scrap ‘revenge’ tax provision from Trump’s big bill after Treasury requests its removal

Lawmakers scrap ‘revenge’ tax provision from Trump’s big bill after Treasury requests its removal
  • Critics warned that Section 899 of the bill "will hurt the US more than it helps"
  • Global Business Alliance said the section could lead to 700,000 US jobs lost

WASHINGTON: Congressional Republicans agreed to remove the so-called revenge tax provision from President Donald Trump’s big bill Thursday after Treasury Secretary Scott Bessent asked members of Congress to do so earlier in the day.
The Section 899 provision would allow the federal government to impose taxes on companies with foreign owners, as well as investors from countries judged as charging “unfair foreign taxes” on US companies.
The measure was expected to lead many companies to avoid investing in the US out of concern that they could face steep taxes.
Bessent said in an X post that he made the request to lawmakers after reaching an agreement with other countries on the Organization for Economic Co-operation and Development Global Tax Deal. He said that after “months of productive dialogue,” they would “announce a joint understanding among G7 countries that defends American interests.”
After he made the request, Senate Finance Committee Chairman Mike Crapo, R-Idaho, and House Ways and Means Committee Chairman Jason Smith, R-Missouri, said “we will remove proposed tax code Section 899” from the bill and “Congressional Republicans stand ready to take immediate action if the other parties walk away from this deal or slow walk its implementation.”
The removal of the provision will provide “greater certainty and stability for the global economy and will enhance growth and investment in the United States and beyond,” Bessent said in his post.
An analysis by the Global Business Alliance, a trade group representing international companies such as Toyota and Nestlé, estimates that the provision would cost the US 700,000 jobs and $100 billion annually in lost gross domestic product.

Global Business Alliance infographic. (X: @GlobalBiz)

The Global Business Alliance was among several groups that signed a letter addressed to Senate Majority Leader John Thune of South Dakota and Senate Finance Committee Chairman Mike Crapo of Idaho, warning of the consequences of Section 899.
The removal of the provision adds a wrinkle to Republicans’ plans to try to offset the cost of the massive package. The non-partisan Congressional Budget Office estimates that the bill would spike deficits by at least $2.4 trillion over the next decade.
Republicans are rushing to finish the package this week to meet the president’s Fourth of July deadline for passage.
Earlier Thursday, the Senate parliamentarian advised that a Medicaid provider tax overhaul central to the spending bill does not adhere to the chamber’s procedural rules, delivering a crucial blow to Republicans, who are counting on big cuts to Medicaid and other programs to offset trillions of dollars in Trump tax breaks.


EU leaders agree to prolong Russia sanctions: officials

EU leaders agree to prolong Russia sanctions: officials
Updated 27 June 2025

EU leaders agree to prolong Russia sanctions: officials

EU leaders agree to prolong Russia sanctions: officials
  • EU’s sweeping sanctions includes freezing of more than 200 billion euros ($234 billion) in Russian central bank assets

BRUSSELS: The EU’s 27 leaders on Thursday agreed to extend sanctions on Russia for another six months, resolving fears that Kremlin-friendly Hungary would let the measures lapse, officials said.
The decision at a summit in Brussels means that the EU’s sweeping sanctions over the war in Ukraine, including the freezing of more than 200 billion euros ($234 billion) in Russian central bank assets, will remain in force until at least early 2026.
It comes after officials said they were preparing contingency plans to keep the bloc’s economic punishment on Moscow in place should Hungarian leader Viktor Orban refuse to budge.
EU counterparts had feared a refusal by Budapest to renew the measures could blow a massive hole in the leverage the bloc holds over Russia as the United States presses peace efforts.
Orban took the decision to the wire the last time the sanctions — which need to be extended every six months — came up for renewal in January.
But while the EU made sure its existing measures will remain in place, it failed to get clearance on a new package of sanctions due to a blockage by Hungary’s ally Slovakia.
Slovakian leader Roberto Fico refused at the summit to greenlight the new round of sanctions due to a separate dispute with Brussels over plans to cut off imports of Russian gas by the end of 2027.
Slovakia remains dependent on Russian gas imports and earns money from transit fees for supplies piped across its territory.
Fico held talks with EU chief Ursula von der Leyen earlier on Thursday but failed to get the concessions he wants and announced he would hold up approval of the sanctions package.
Ukraine’s President Volodymyr Zelensky urged EU leaders in a video address to adopt the strong package “targeting Russia’s oil trade, shadow tanker fleet, banks, and supply chains that bring equipment or parts for making weapons.”
Officials say, however, that a push to lower a price cap on Russian oil exports has been shelved after Washington failed to back the push as part of a broader G7 initiative.
 


Ukraine, Russia exchange another group of POWs

Ukraine, Russia exchange another group of POWs
Updated 27 June 2025

Ukraine, Russia exchange another group of POWs

Ukraine, Russia exchange another group of POWs

CHERNIGIV REGION, Ukraine: Ukraine and Russia exchanged a new group of captured soldiers on Thursday, the latest in a series of prisoner swaps agreed at peace talks in Istanbul earlier this month.
Neither side said how many prisoners were released in the latest exchange.
The two countries pledged to swap at least 1,000 soldiers each during their direct meeting in Istanbul on June 2 but no follow-up talks have been scheduled.
The return of prisoners of war and the repatriation of war dead have been among the few areas of cooperation between the warring sides since Moscow invaded Ukraine in 2022.
“Today, warriors of the Armed Forces, the National Guard, and the State Border Guard Service are returning home,” Ukrainian President Volodymyr Zelensky said on social media.
He shared images of Ukrainian soldiers draped in blue-and-yellow national flags, smiling and tearfully embracing.
AFP reporters in Ukraine’s northern Chernigiv region saw relatives awaiting the prisoner release.
Some family members waved posters of missing or captured soldiers in the hope someone would recognize their loved ones and bring them news.
Svitlana Nosal learned her husband Viktor had been freed.
“It’s such a joy, I don’t know how to describe it, how to put it into words,” she said, laughing and crying in the late afternoon sun.
The majority of those released on Thursday were held captive for more than three years, according to Ukraine’s Coordination Headquarters for the Treatment of Prisoners of War.
Many of them were taken prisoner in Mariupol, a Ukrainian port city that fell to Russian forces in 2022 following a nearly three-month siege, it said.
Russia said its soldiers had been transferred to Belarus and were receiving “psychological and medical care.”
“Another group of Russian servicemen has been returned from territory controlled by the Kyiv regime,” the defense ministry said in a statement.
It posted a video showing freed Russian soldiers draped in their national flag, chanting “Russia, Russia, Russia!“