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The US will take over Gaza and “own it”, Donald Trump has said.

Speaking alongside Israeli Prime Minister Benjamin Netanyahu at the White House, he said the two million Palestinian people living in the territory, which he described as a “demolition site”, would go to “various domains”.

Asked about deploying US troops to fill a potential security vacuum, the president replied: “We’ll do what is necessary.”

Expanding on plans for the territory, he said the US would “develop it, create thousands and thousands of jobs” and turn it into “something the entire Middle East can be very proud of”.

Donald Trump and Benjamin Netanyahu during a news conference in the East Room of the White House. Pic: AP
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Donald Trump and Benjamin Netanyahu during a news conference in the East Room of the White House. Pic: AP

The president reiterated his suggestion from 25 January that Palestinians could be relocated to Egypt and Jordan – something both countries, other Arab nations including Saudi Arabia, and Palestinian leaders, have rejected.

Palestinians in Gaza could go to countries beyond Jordan and Egypt too, he said.

Asked whether he thought Egypt and Jordan would accept Palestinians, he said he believed they would.

But, he added: “I hope we could do something where they wouldn’t want to go back. Who would want to go back?

“They’ve experienced nothing but death and destruction.”

Saudi Arabia immediately responded, stressing its rejection of attempts to displace Palestinians from Gaza, and insisted it would not establish relations with Israel without a Palestinian state.

Donald Trump and Benjamin Netanyahu during a news conference in the East Room of the White House. Pic: AP
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Pic: AP

Asked on what authority the US could take control of Gaza, Mr Trump told reporters he sees a “long term ownership position” which would, he claimed, bring stability to that part of the Middle East.

“This was not a decision made lightly,” he said.

“Everybody I’ve spoken to loves the idea of the United States owning that piece of land, developing and creating thousands of jobs.”

It would be the “Riviera of the Middle East”.

He continued: “I’ve studied it. I’ve studied this very closely over a lot of months, and I’ve seen it from every different angle.”

He does not believe Palestinians should return to Gaza because it is a “guarantee that they’re going to end up dying”.

He talked about finding a “beautiful area to resettle people, permanently, in nice homes where they can be happy and not be shot and not be killed and not be knifed to death like what’s happening in Gaza”.

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Gazans return home to rubble

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The war, triggered by Hamas carrying out a massacre of 1,200 people and taking 250 others hostage during the 7 October 2023 attacks in Israel, has temporarily stopped since the long-sought ceasefire deal came into effect on 19 January.

More than 47,000 Palestinians have been killed in Gaza since Hamas’s attack, according to local authorities.

Mr Netanyahu, the first world leader to meet Mr Trump since the pro-Israel president’s return to the White House, sat beside the Republican as he answered questions from the press.

Trump relocation call will horrify Palestinians

If President Trump is to be taken at face value then he is set to repeat history.

It would end the prospect of a two-state solution – Israelis and Palestinians living side by side on the same land.

It could also wreck any prospects of diplomatic normalisation between Israel and Gulf Arab states.

Nations like Saudi Arabia wouldn’t stand for such a permanent resettlement and probably wouldn’t trust any resettlement presented as ‘temporary’ – which this is conspicuously not.

The two countries being told to take the people of Gaza – Egypt and Jordan – have firmly refused to do so. The American president seems convinced they will roll over.

Maybe though this is part of Trump’s art of the deal: to suggest something, then not follow through – and present that as a concession down the line.

There’s something else too.

Even if Israeli PM Netanyahu believes it’s a plan that can’t work and could further the cries of ethnic cleansing (it’s notable that he didn’t add his overt support to it alongside Trump) the president’s plan will certainly help him domestically where his future is fragile.

Netanyahu can dangle ‘permanent relocation’ in front of the real hardliners in his government who keep him in power.

Whatever is at play here, the announcement today will horrify Palestinians and it will delight and embolden the hardline elements of Israeli society who have dreamt of a Jewish state free of Palestinians.

‘Plans change with time’

The US president hinted he would seek an independent Palestinian state as part of a broader two-state solution to the decades-long Israel-Palestine conflict.

“Well, a lot of plans change with time,” he told reporters when he was asked if he was still committed to a plan similar to the one he spelled out in 2020 that described a possible Palestinian state.

That plan proposed a series of Palestinian enclaves surrounded by an enlarged Israel, did not have the Palestinian capital in East Jerusalem, but suggested a Palestinian capital on the outskirts of the city.

“A lot of death has occurred since I left and now came back. Now we are faced with a situation that’s different – in some ways better and in some ways worse. But we are faced with a very complex and difficult situation that we’ll solve,” he said.

On the likelihood of getting a permanent ceasefire in Gaza, Mr Trump said: “We are dealing with a lot of people, and we have steps to go yet, as you know, and maybe those steps go forward, and maybe they don’t.

“We’re dealing with a very complex group of people, situation and people, but we have the right man. We have the right leader of Israel. He’s done a great job.”

Mr Trump was also asked whether he should get the Nobel Peace Prize.

He said: “They will never give me a Nobel Peace Prize. It’s too bad. I deserve it, but they will never give it to me.”

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Trump threatens Iran would be ‘obliterated’ if it assassinates him – as he signs ‘tough’ directive against Tehran

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Trump threatens Iran would be 'obliterated' if it assassinates him - as he signs 'tough' directive against Tehran

Donald Trump has withdrawn the US from the UN Human Rights Council as he threatened that Iran would be ‘obliterated’ if it assassinates him.

The president has also stopped funding of the UN’s relief agency for Gaza.

The executive order means Mr Trump has reinstated policies that were in place during his first administration.

Joe Biden’s administration previously paused funding to the UN Relief and Works Agency for Palestine Refugees (UNRWA) after reports its staff were involved in the 7 October attacks.

Mr Trump also claimed today that Palestinians have “no alternative” but to leave Gaza, but that he doesn’t necessarily support Israelis settling in the enclave.

The US president also repeated previous suggestions that he would like to see Jordan and Egypt take Palestinians from Gaza.

The UN estimates that 60% of structures in the enclave have been damaged or destroyed, with almost all of the 2.3 million people in Gaza having been forced to leave their homes during Israel’s 15-month war to take shelter elsewhere in the territory.

More on Donald Trump

Mr Trump’s executive orders and comments come as he is set to meet Israeli prime minister Benjamin Netanyahu at the White House – marking the first visit of a foreign leader during Mr Trump’s second term.

Meanwhile, Mr Trump also signed a “tough” directive on Iran because Tehran was “too close” to having a nuclear weapon.

Mr Trump said he would hold talks with his counterpart in Tehran, but warned he’s left “instructions” for his advisers that if Iran assassinated him, the US foe “would be obliterated”.

The US Justice Department announced federal charges in November that an Iranian plot to kill Mr Trump before the presidential election had been thwarted.

The department alleged Iranian officials had instructed Farhad Shakeri, 51, to focus on surveilling and ultimately assassinating Mr Trump.

Shakeri is still at large in Iran.

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Why China has not retaliated more in Donald Trump trade spat

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Why China has not retaliated more in Donald Trump trade spat

China has, as expected, hit back at Donald Trump’s imposition of a 10% tariff on its exports to the United States.

Beijing has slapped levies of between 10-15% on a range of energy products that imports from the US.

But what has surprised observers – particularly when Mr Trump kicked off the trade war over the weekend – has been the president’s comparatively lenient treatment of China and, moreover, Beijing’s calm response.

While America’s two closest neighbours, Canada and Mexico, were hit with 25% tariffs (falling to 10% for Canadian energy exports) – since put on ice – China was merely hit with a 10% levy.

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That struck many observers as curious since China is regarded as a bigger trade adversary by the US than Mexico and Canada, with the latter traditionally seen as a close friend to the US, particularly through the pair’s involvement in the ‘Five Eyes’ security alliance along with Australia, New Zealand and the UK.

The big question raised by this is what motivated Mr Trump to do this.

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The thinking is that the president was trying to bring China to the negotiating table and that, by initially hitting a close ally like Canada harder, he was trying to send a message to China’s leaders as to what they might face further down the line.

That impression was reinforced by Mr Trump’s overnight description of his 10% tariff on China as an “opening salvo”.

Why is China so calm?

That is not the only curiosity concerning this affair.

The other is the relatively calm response from Beijing. While Canada immediately responded with retaliatory measures and Mexico indicated that it would, China merely murmured in the first instance about taking “necessary countermeasures” and indicated that it would raise a complaint about the US with the World Trade Organisation.

Since then, Beijing has of course hit back with tariffs of its own on US energy imports, as well as launching an antitrust investigation into Google and adding the parent company of Tommy Hilfiger and Calvin Klein on a blacklist of “unreliable entities”.

That gives Chinese president Xi Jinping something to take back off the table if, as expected, he speaks to Mr Trump in coming days as the pair seek to de-escalate this row.

But it all feels relatively restrained and raises the question of why China has responded in this way.

There is certainly a view in Beijing that, with Mr Trump’s first moves, China got off rather lightly compared with the Canadians and Mexicans.

That sanguine response may also indicate that Beijing knows it has other weapons it can deploy other than retaliatory measures.

Cards in China’s back pocket

For a start, China owns $769bn worth of US Treasury bonds. Dumping some of those aggressively – while hurting the Chinese – would push up America’s implied borrowing costs.

Alternatively, Beijing could allow its currency, the renminbi, to weaken on the foreign exchange markets, just as it did during Mr Trump’s first term of office.

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Trump tariffs: What is America’s trade position?

Either way, Mr Trump’s latest measures are unlikely to change the way Chinese businesses operate, particularly the country’s manufacturers.

They have become accustomed over several years, dating back to Mr Trump’s first term, to aggression from the US. They have adapted the way they do business accordingly, for example by shipping a lot of their exports to the US via third countries, most notably Vietnam.

Chinese businesses relieved

Even Chinese companies specifically targeted by Mr Trump – the e-commerce giants Temu and Shein – may not be too badly affected.

They were both singled out as the president closed the so-called “de minimis” loophole, dating back to 1938, which allows goods worth less than $800 to be sent directly to US consumers without incurring import duties or rigorous customs inspections.

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This has been a constant thorn in the side of US retailers and its removal helps explain why, for example, shares of Walmart were on Monday spared the spanking meted out to other US stocks.

Yet Shein and Temu are said to be taking the news calmly.

They may even be calculating that this is a short-term squall that will soon blow over – or calculating that, such is the enormity of their buying power and supply chains, they can simply ship inventory elsewhere in the meantime or even just warehouse it.

It is also worth noting that Shein, having been banned by India in 2020, has just begun selling in the country again.

Overall, then, Chinese businesses have reacted with relief to what has happened. They know it could have been worse.

It explains why, even though the Chinese economy is presently misfiring, the authorities in Beijing have reacted relatively calmly to what Mr Trump has done.

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Mexico and Canada agree to bolster US border security in return for tariff pause

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Mexico and Canada agree to bolster US border security in return for tariff pause

Both Canada and Mexico have agreed to strengthen border security with the United States in return for a 30-day pause in tariffs.

President Trump announced on Sunday he was imposing 25% taxes on goods from his country’s northern and southern neighbours.

Mexico was first to reach a deal with the White House. Its president, Claudia Sheinbaum, said she was sending 10,000 National Guard troops to the US border immediately in return for a tariff delay.

Mr Trump said the Mexican soldiers would be “specifically designated” to stop the flow of the synthetic opioid fentanyl into the US, as well as illegal migrants. Further negotiations will now be carried out, he added.

Ms Sheinbaum said she had a “good conversation” with him lasting at least 30 minutes just hours before the tariffs were due to begin.

She also extracted a concession from Mr Trump – after explaining the “seriousness” of high-powered weapons coming over the border from the US and getting into the hands of criminal groups.

“It gives them firepower,” she said. “We asked that the US also help our country by helping stop this arms trafficking… he agreed.”

Donald Trump as he hosted the 2024 Stanley Cup Champions, the Florida Panthers, at the White House. Pic: Reuters
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Donald Trump hosting the 2024 Stanley Cup Champions, the Florida Panthers, at the White House. Pic: Reuters

Canada made similar moves. Prime Minister Justin Trudeau said almost 10,000 frontline personnel “are and will be working on protecting the border”.

He added on X that his country was appointing a “fentanyl czar”, drugs cartels would be listed as terrorists, and there would be “24/7 eyes on the border”.

There will also be a Canada-US joint strike force to “combat organised crime, fentanyl and money laundering”, Mr Trudeau announced.

Both Trudeau and Trump will view the deal as a win – Trump for seemingly forcing the US’s northern neighbour to act, and Trudeau for heading off sanctions with measures that for the most part (with the exception of the fentanyl czar) had already been announced in December.

Donald Trump said he was “very pleased with this initial outcome” and work will begin see how a “Final Economic Deal” with Canada can be structured.

Analysis: Has it all just been theatre?

First Mexico, now Canada. In another whirlwind day, both of America’s closest neighbours appear to have capitulated to President Trump.
The 25% tariffs on all goods from both countries were due to come into effect at midnight US Eastern time. But after calls between all three leaders, suddenly the tariffs were paused.

So what’s going on? Is this a clear signal of the power Trump wields? His blunt tool of using the threat of tariffs as a negotiating tool has paid off? Bullying tactics work? Well, maybe. At least that’s how Mr Trump wants everyone to think. Dance to my tune, or else.

And it’s absolutely the case that Mexico and Canada were in panic mode this weekend. But surely Donald Trump was panicking a little too when he saw the stock markets on Monday. He claimed this afternoon not to be taking any notice of their sharp falls. But we know he cares deeply about market reactions.

Here’s what’s interesting: the statement from Canadian Prime Minister Justin Trudeau sounded at first glance like it was announcing something new.
“Canada is implementing our $1.3bn border plan… nearly 10,000 frontline personnel are and will be working on protecting the border…”

But it’s not a new announcement. Look at the language – “are and will be”. In other words, “we’re doing this already Mr President, but if you want me to reiterate it to placate you, then I will…” All that Justin Trudeau has done today is reiterate a border plan he announced last December.

Mexico too has been doing an increasing amount in the fight against fentanyl though it could and probably now will do more.

So has it all been theatre this past 24 hours?

A show of brinkmanship from Donald Trump, which could have had a cliff-edge ending, but instead ended with him looking strong (and freaking out much of the developed world in the process) and his closest neighbours forced to reiterate their existing plans.

Regarding China, a 10% tariff – in addition to those already in place – is still set to go ahead, though the White House said Mr Trump is due to talk to President Xi Jinping.

The US president has, however, said 10% could be just the start.

“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” he said.

China has described fentanyl as America’s problem, and said it would challenge the tariffs at the World Trade Organisation, as well as taking other countermeasures.

But it also left the door open for talks.

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‘PM walking tightrope between Trump and EU’

What is the UK situation on tariffs?

President Trump hates trade deficits, and does not want to import more goods from another country than are sent there in return, says Sky’s economics and data editor, Ed Conway.

But Britain has bigger trade deficits than the US, Conway adds, and is one of the few countries in the world to import more goods from America than America imports from it.

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In addition, because the UK is no longer part of the European Union, any tariffs imposed on Brussels will not affect London.

When asked about the UK, Mr Trump said: “I think that one can be worked out.”

Sir Keir Starmer said it was “early days”.

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