Of all the fronts in Donald Trump’s trade war, none was as dramatic and economically threatening as the sky-high tariffs he imposed on China.
There are a couple of reasons: first, because China is and was the single biggest importer of goods into the US and, second, because of the sheer height of the tariffs imposed by the White House in recent months.
In short, tariffs of over 100% were tantamount to a total embargo on goods coming from the United States’ main trading partner. That would have had enormous economic implications, not just for the US but every other country around the world (these are the world’s biggest and second-biggest economies, after all).
So the truce announced on Monday by treasury secretary Scott Bessent is undoubtedly a very big deal indeed.
In short, China will still face an extra 30% tariffs (the 20% levies cast as punishment for China’s involvement in fentanyl imports and the 10% “floor” set on “Liberation Day”) on top of the residual 10% average from the Biden era.
But the rest of the extra tariffs will be paused for 90 days. China, in turn, has suspended its own retaliatory tariffs on the US.
The market has responded as you would probably have expected, with share prices leaping in relief. But that raises a question: is the trade war now over? Now that the two sides have blinked, can globalisation continue more or less as it had before?
That, it turns out, is a trickier and more complex question than it might first seem.
Image: Pic: AP
For one thing, even if one were to assume this is a permanent truce rather than a suspended one, it still leaves tariffs considerably higher than they were only last year. And China faces tariffs far higher than most other countries (tot up the existing ones and the Trump era ones and China faces average tariffs of around 40%, while the average for most countries is between 8% and 14%, according to Capital Economics).
In other words, the US is still implementing an economic policy designed to increase the cost of doing business with China, even if it no longer attempts to prevent it altogether. The fact that last week’s trade agreement with the UK contains clauses seemingly designed to encourage it to raise trade barriers against China for reasons of “security” only reinforces this suspicion. The trade war is still simmering, even if it’s no longer as hot as it was a few days ago.
And more broadly, the deeper impact of the trade rollercoaster in recent months is unlikely to disappear altogether. Companies remain more nervous about investing in factories and expansions in the face of such deep economic instability. No-one is entirely sure the White House won’t just U-turn once again.
That being said, it’s hard not to escape the conclusion that the US president has blinked in this trade war. In the face of a potential recession, he has pulled back from the scariest and most damaging of his tariffs, earlier and to a greater extent than many had expected.
Ukraine’s president says his country’s attack on 40 bomber aircraft at multiple bases across Russia “will undoubtedly be in history books”.
Drones were smuggled into Russia and launched remotely off the back of trucks, security sources said.
It is one of the most audacious Ukrainian special operations since the start of Vladimir Putin’s war more than three years ago – and is a huge breach of Russia’s national defences.
In a further humiliation for the Kremlin, Ukraine’s president revealed that the “office” where the secret Ukrainian mission was conducted inside Russia was located next to a facility run by the Russian security services, the FSB.
“In total, 117 drones were used in the operation,” Volodymyr Zelensky said in a video message posted on social media.
“And the corresponding number of drone operators were working. Thirty four percent of the strategic cruise missile carriers at the airfields were hit.
“Our people were operating in different Russian regions – in three time zones. And our people were withdrawn from the territory of Russia on the eve of the operation, and now they are safe – those who helped us.”
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He added that Ukraine was defending itself and its operation “will undoubtedly be in history books”.
Image: These drones were used to destroy Russian bomber aircraft. Pic: SBU Security Service
Image: Pic: SBU
The targeting of the bomber force will degrade the Russian military’s ability to launch missile strikes against Ukraine.
Videos shared with Sky News by Ukraine’s SBU Security Service purport to show a line of Russian strategic bombers with smoke billowing out of them.
“Enemy strategic bombers are massively burning in Russia – this is the result of a special SBU operation,” a security source said.
The operation – codenamed “spider’s web” – sounds more like a plot from a science fiction movie than reality, but it shows how new technology has transformed the battlefield.
It also reveals the vulnerability of large bases and expensive pieces of military equipment.
A security source said Ukrainian operatives smuggled first-person view (FPV) drones into Russia.
They then brought in a load of wooden, flat-pack, garden office-style containers.
These huts were constructed, with the drones hidden inside them, before being put on to the back of trucks and driven to locations from where the attacks were launched.
At the right moment, hatches on the roofs of the huts were opened remotely, and the drones were piloted onto their targets, according to the source.
Image: The drones were hidden in truck containers and the tops remotely lifted for the drones to be flown out. Pic: SBU Security Service
The source said the mission took one and a half years to plan and was supervised by Ukrainian President Volodymyr Zelenskyy.
Sources said the individuals who took part in this special operation have been back in Ukraine for a long time.
They claimed that anyone detained in Russia by the Russian authorities would be just for show.
Offering details of the actual attack, a second source said four bases were targeted. It was not possible independently to confirm the claim.
“Right now, the Security Service of Ukraine is conducting a large-scale special operation to destroy enemy bombers in the rear of Russia,” the source said.
“The SBU drones are targeting aircraft that bomb Ukrainian cities every night. So far, more than 40 planes have been hit, including A-50, Tu-95 and Tu-22 M3.”
The Tu-95 and Tu-22 are both heavy bombers that can fire cruise missiles.
Image: The locations of the Ukrainian targets
At least one of the videos shared with Sky News is purportedly of the Belaya airfield, more than 2,500 miles from the Ukrainian border.
Sources claimed to have inflicted more than $2bn (£1.4bn) worth of damage on the Russian air force.
“We are waiting for the details. And we hope that the number of hit aircraft will increase!” one source said.
The latest toll was 41 aircraft, according to Ukrainian sources.
The other Russian airbases targeted by Ukraine were: Diagilevo, Olenya and Ivanovo airfields.
An audacious Ukrainian drone attack against multiple airbases across Russia is a humiliating security breach for Vladimir Putin that will doubtless trigger a furious response.
Pro-Kremlin bloggers have described the drone assault – which Ukrainian security sources said hit more than 40 Russian warplanes – as “Russia’s Pearl Harbor” in reference to the Japanese attack against the US in 1941 that prompted Washington to enter the Second World War.
The Ukrainian operation – which used small drones smuggled into Russia, hidden in mobile sheds and launched off the back of trucks – also demonstrated how technology and imagination have transformed the battlefield, enabling Ukraine to seriously hurt its far more powerful opponent.
Moscow will have to retaliate, with speculation already appearing online about whether President Putin will again threaten the use of nuclear weapons.
“We hope that the response will be the same as the US response to the attack on their Pearl Harbor or even harsher,” military blogger Roman Alekhin wrote on his Telegram channel.
Codenamed ‘Spider’s Web’, the mission on Sunday was the culmination of one and a half years of planning, according to a security source.
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In that time, Ukraine’s secret service smuggled first-person view (FPV) drones into Russia, sources with knowledge of the operation said.
Flat-pack, garden-office style sheds were also secretly transported into the country.
Image: The drones were hidden in truck containers. Pic: SBU Security Service
The oblong sheds were then built and drones were hidden inside, before the containers were put on the back of trucks and driven to within range of their respective targets.
At a chosen time, doors on the roofs of the huts were opened remotely and the drones were flown out. Each was armed with a bomb that was flown into the airfields, with videos released by the security service that purportedly showed them blasting into Russian aircraft.
Image: These drones were used to destroy Russian bomber aircraft. Pic: SBU Security Service
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Among the targets were Tu-95 and Tu-22 bomber aircraft that can launch cruise missiles, according to the Ukrainian side. An A-50 airborne early warning aircraft was also allegedly hit. This is a valuable platform that is used to command and control operations.
The use of such simple technology to destroy multi-million-pound aircraft will be watched with concern by governments around the world.
Suddenly, every single military base, airfield and warship will appear that little bit more vulnerable if any truck nearby could be loaded with killer drones.
The most immediate focus, though, will be on how Mr Putin responds.
Previous attacks by Ukraine inside Russia have triggered retaliatory strikes and increasingly threatening rhetoric from the Kremlin.
But this latest operation is one of the biggest and most significant, and comes on the eve of a new round of peace talks between Moscow and Kyiv that are meant to take place in Turkey. It is not clear if that will still happen.
US President Donald Trump has been pushing for the two sides to make peace but Russia has only escalated its war.
Ukraine clearly felt it had nothing to lose but to also go on the attack.
Two people are dead and nearly 560 people were arrested after disorder broke out in France following Paris Saint-Germain’s victory in the Champions League final, the French interior ministry has said.
The ministry added 192 people were injured and there were 692 fires, including 264 involving vehicles.
A 17-year-old boy was stabbed to death in the city of Dax during a PSG street party after Saturday night’s final in Munich, the national police service said.
The second person killed was a man who was hit by a car while riding a scooter during PSG celebrations, the interior minister’s office said.
Paris police chief Laurent Nuñez has said the man was in his 20s and although the incident is still being investigated, it appears his death was linked to the disorder.
Meanwhile, French authorities have reported that a police officer is in a coma following the clashes.
Image: A burning bike on the Champs Elysees during the disorder. Pic: Reuters
The officer had been hit by a firecracker that emerged from a crowd of supporters in Coutances in the Manche department of northwestern France, according to reports in the country.
Initial investigations reportedly suggest the incident was accidental and the police officer was not deliberately targeted.
The perpetrator has not been identified.
Image: A man walks past teargas during incidents after the Champions League final soccer match between Paris Saint-Germain and Inter Milan. Pic: AP
Image: A burning bike on the Champs Elysees during the disorder. Pic: Reuters
The interior ministry earlier said 22 security forces workers were injured during the chaos – including 18 who were injured in Paris, along with seven firefighters.
In a news conference today, Mr Nuñez said only nine of the force’s officers had been injured in the French capital.
He added that fireworks were directed at police and firefighters were attacked while responding to car fires.
There were 559 arrests across the country during the disorder, including 491 in Paris. Of those detained across the country, 320 were taken into police custody – with 254 in the French capital.
Mr Nuñez said although most people wanted to celebrate PSG’s win, some only wanted to get involved in fights with police.
He also said the force is only at “half-time” in its response because the PSG team will be celebrating their Champions League victory on the Champs Élysées later today.
Image: Police in Paris during the disorder. Pic: Reuters
Image: Police in Paris during the disorder. Pic: Reuters
Mr Nuñez said that the police presence and military presence in Paris will be increased on the ground for the parade.
It comes after flares and fireworks were set off in the French capital after PSG beat Inter Milan 5-0 in Munich – the biggest ever victory in a Champions League final.
Around 5,400 police were deployed across Parisafter the game, with officers using tear gas and pepper spray on the Champs Élysées.
Image: Pic: AP
Image: Pic: AP
At the top of the Champs Élysées, a water cannon was used to protect the Place de l’Etoile, near the landmark Arc de Triomphe.
Police said a large crowd not watching the match tried to push through a barrier to make contact with officers.
Some 131 arrests were made, including 30 who broke into a shoe shop on the Champs Élysées.
Police have said a total of four shops, including a car dealership and a barbers, were targeted during the disorder in Paris.
Two cars were set alight close to Parc des Princes, police said.
PSG forward Ousmane Dembélé appealed for calm in a post-match interview with Canal+, saying: “Let’s celebrate this but not tear everything up in Paris.”
Image: Pics: AP
After the final played at the Allianz Arena in Munich, Germany, thousands of supporters also tried to rush the field.
Police lined up in front of the PSG end of the stadium at the final whistle, but struggled to contain the fans for several minutes when they came down from the stands following the trophy presentation.
Image: Pics: AP
Désiré Doué, the 19-year-old who scored two goals and assisted one in the final, said after the game: “I don’t have words. But what I can say is, ‘Thank you Paris,’ we did it.”
Despite being a supporter of PSG’s rivals Olympique de Marseille, French President Emmanuel Macron also said on social media: “A glorious day for PSG!
“Bravo, we are all proud. Paris, the capital of Europe this evening.”
Mr Macron’s office said the president would receive the players at the Elysee Palace on Sunday.
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