looms

High-stakes showdown looms as US and EU trade member states meet

The United States’ Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick are arriving in Brussels on Monday for what is expected to be a tense showdown with EU trade ministers.

After months of recriminations on both sides of the Atlantic over the implementation of this summer’s trade deal, the EU and the US are now expected to confront their most contentious differences head-on.

Washington will press to fast-track the deal’s rollout while pushing the bloc to scrap EU legislation it considers unfair to US companies, while Brussels will seek additional exemptions from the 15% US tariffs on its exportsand warn its counterparts about the potential fallout of US investigations into European products.

Ahead of the meeting, EU diplomats said they expected the discussion to be “frank”.

Commission president Ursula von der Leyen and US president Donald Trump clinched a trade deal in July after weeks of negotiations in which the EU tried to minimise the impact of Washington’s newly aggressive trade agenda. In the end, von der Leyen was able to strike a deal that EU-produced goods arriving in the US would be taxed at a rate of 15% while Brussels lifted its duties on most US products.

Presented by the Commission as the most advantageous deal it could get, the agreement has been widely criticised across the EU. The European Parliament, which has to vote on the Commission’s proposal to remove tariffs on US goods, is set to amend the deal and is discussing a 18-month suspension clause.

The US is complaining that the EU’s legislative agenda is moving too slowly. EU lawmakers will vote on the text in January and they should agree on a common text with EU member states next March or April – a timescale radically longer than the Trump administration’s preference.

Greer raised the issue in a meeting with European Parliament president Roberta Metsola last Friday.

EU faces criticism “with good confidence”

The EU is ready to face US criticism “with good confidence” an EU diplomat said, noting that the legislative process in Brussels could have taken a lot longer.

“To my knowledge, the US administration has not taken its decisions through Congress, so it doesn’t take quite as long in the US,” another EU diplomat said, implyingthat the US trade agenda was mainly decided from the White House.

The EU plans to show unity by handing over a list of proposed exemptions to the 15% tariffs they hope to obtain from the Americans. The list includes products such as wines, spirits and pasta.

“American friends are very much aware of where the European Union would like to see tariff reductions,” the same EU diplomat said.

For the Commission, which has competence to negotiate with Washington, the list of exemptions “remains a priority,” according to its deputy chief spokesperson, Arianna Podesta.

The EU is also concerned about the future of its steel exports. The US already imposes 50% tariffs on steel and aluminium, and has extended them to some 407 derivatives. A consultation already underway may see further derivatives added to the list.

As EU diplomats see it, adding tariffs on steel derivatives would go against the whole “spirit” of this summer’s agreement. The same goes for investigations still open by Washington into products such as pharmaceuticals, semiconductors and medical devices.

EU investments will also be on the agenda. Greer and Lutnick will meet in the afternoon, EU business representatives with EU Trade Commissioner Maroš Šefčovič.

The trade deal includes an EU pledge of €600 billion in investments in the US even though Brussels has no direct control over the private sector, which is the only force capable of actually delivering those investments.

Monday’s meetings will not be an easy task for the Europeans, as US pressure has been unrelenting since Donald Trump returned to the White House, with the president repeatedly threatening new tariffs or targeting EU legislation he deems too restrictive for US companies.

However, the EU has so far not looked intimidated, and is continuing to enforce the digital legislation that Trump and his administration have condemned.

In the last few weeks, Brussels has launched antitrust investigations against Amazon and Microsoft and hit Google with a €2.95 billion for abusing its dominant position in the advertising technology industry – moves that have not gone unnoticed in Washington.

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Iran Ramping Up Missile Production As Another Potential War With Israel Looms

Iran states it has more missiles now than it had during the 12 Day War with Israel. While the accuracy of that claim is questionable, experts who follow Tehran’s missile program say that the country has ramped up production in an effort to have its arsenal ready to overwhelm Israeli missile defenses, which were degraded during the war. All this comes amid growing concerns about a new conflict over Iran’s nuclear program.

“Our missile power today far surpasses that of the 12-Day War,” Iran’s Foreign Minister Abbas Araghchi recently proclaimed. “The enemy in the recent 12-day war failed to achieve all its objectives and was defeated.”

“Iran’s defense production has improved both in quantity and quality compared to before the 12-day Israeli-imposed war in June,” Brig. Gen. Aziz Nasirzadeh, the country’s defense minister, said on Monday.

Members of the Israeli security forces check the apparent remains of an Iranian ballistic missile lying on the ground on the outskirts of Qatzrin, Golan Heights, Israel, on Monday, June 23, 2025. (Photo by Michael Giladi / Middle East Images via AFP) (Photo by MICHAEL GILADI/Middle East Images/AFP via Getty Images)
Members of the Israeli security forces check the apparent remains of an Iranian ballistic missile lying on the ground on the outskirts of Qatzrin, Golan Heights, Israel, on Monday, June 23, 2025. (Photo by Michael Giladi / Middle East Images via AFP) MICHAEL GILADI

Meanwhile, Iranian officials have told Ali Vaez, the Iran project director at the International Crisis Group, that “missile factories are working 24 hours a day,” The New York Times reported. Vaez added that if there is another war, “they hope to fire 2,000 at once to overwhelm Israeli defenses, not 500 over 12 days” as they did in June. “Israel feels the job is unfinished and sees no reason not to resume the conflict, so Iran is doubling down preparedness for the next round.”

While “it’s not clear exactly how many missiles in a larger volley the Islamic Republic may choose to fire, there is no doubt that they may still try to find a way to overwhelm either interceptors or dependent sites with a greater number of projectiles fired at once,” Vaez added.

RAMALLAH, WEST BANK - JUNE 19: Missiles fired from Iran are seen streaking across the skies over the city of Ramallah in the West Bank on June 19, 2025. (Photo by Issam Rimawi/Anadolu via Getty Images)
Missiles fired from Iran are seen streaking across the skies over the city of Ramallah in the West Bank on June 19, 2025. (Photo by Issam Rimawi/Anadolu via Getty Images) Anadolu

In addition to increasing the number of missiles it is producing, Iran is also applying lessons learned from the 12-Day War to improve their effectiveness, Behnam Ben Taleblu, a senior fellow at the Foundation for Defense of Democracies (FDD) think tank, told TWZ.

“The Islamic Republic also learned how to fire less and get more bang for your buck based on the targets and based on the location and based on the firing sequence, or the launch formula, that the regime employed when it fired for some bases that were further east in Iran during the 12-Day War,” he explained. “There is no doubt the regime wants to improve the lethality of its missile force. It certainly has learned a lot between Operation True Promise One, True Promise Two and True Promise Three.”

During the conflict, Iran claimed it used what it calls the Fattah-1 medium-range ballistic missile (MRBM). Authorities in Iran explicitly touted those, the Haj Qassem and Kheibar Shekan, as offering high terminal maneuverability and/or high speeds specifically intended to reduce their vulnerability to missile defense interceptors. You can see videos claiming to show Fattah-1 missiles hitting Israel.

#Iran / #Israel 🇮🇷🇮🇱: Iranian Forces have struck Israeli positions and Headquarters in the city #TelAviv with Missiles.

During the waves #IRGC launched various missiles including what seems to be possible “Fattah-1/2” Hypersonic Ballistic Missiles as well. pic.twitter.com/uVFWpk0b2w

— War Noir (@war_noir) June 13, 2025

#Iran / #Israel 🇮🇷🇮🇱: Iranian Armed Forces launched a new wave missiles and hit numerous locations including #TelAviv.

Hundreds of “Emad” , “Kheibar Shekan” and “Fattah-1/2” Hypersonic Ballistic Missiles were reportedly launched. pic.twitter.com/YvWrnEfVUI

— War Noir (@war_noir) June 15, 2025

🚨 BREAKING:

Iran’s IRGC confirms the first-ever use of the Fattah-1 hypersonic missile in a strike on Tel Aviv.

With Mach 13-15 speed and a 1,400 km range, it reached the target in under 5 minutes, maneuvering both inside and outside the atmosphere. pic.twitter.com/Oc3DyvdrUq

— Defence Index (@Defence_Index) June 18, 2025

While it is unclear exactly what mix of new missiles Iran is building, increasing the production of higher-speed, more survivable ones would be a problem for Israel, given their increased ability to pierce missile defenses.

Improving the overall effectiveness of their ballistic missile barrages is clearly a top priority for Tehran, just as defending against future attacks is for Israel. As we previously noted, Iran launched 631 missiles during the 12-Day War, of which 500 reached Israel, according to assertions made by the Israel Defense Forces (IDF). Of those missiles that did land on Israeli soil, 243 hit open areas, requiring no air defense response. A total of 36 missiles hit populated areas, while 221 missiles were intercepted. That represented an 86% success rate, the Israeli analysis claimed. We cannot independently verify the details provided by Israel.

TEL AVIV, ISRAEL - JUNE 23: Civilians retrieve personal belongings from the rubble of their house after a ballistic missile fired from Iran struck the city yesterday morning on June 23, 2025 in Tel Aviv, Israel. Iran and Israel have continued to exchange aerial attacks in the days after the United States bombed several Iranian nuclear sites. (Photo by Amir Levy/Getty Images)
Civilians retrieve personal belongings from the rubble of their house after a ballistic missile fired from Iran struck Tel Aviv on June 23, 2025. (Photo by Amir Levy/Getty Images) Amir Levy

Still, having to fire so many interceptors placed a huge strain on Israel’s vaunted integrated air and missile defense system (IADS), according to several published reports, which the IDF denied. The U.S. expended many advanced interceptors during the onslaught, as well.

“U.S. and Israeli defenses were stretched thin and vast numbers of interceptors were needed to defend against Iran’s ragged retaliation,” the Foreign Policy Research Institute concluded.

Beyond interceptions, Israel managed to destroy a significant number of Iran’s launchers during its aerial interdiction campaign over Iran, as well as temporarily blocking or destroying missile storage sites, and disrupting command and control of Iranian missile forces during the war, greatly reducing Tehran’s ability to get off shots. It is unknown how many missiles were destroyed on the ground during the war and how many were left untouched.

“Iran also has learned about its vulnerabilities, and it is seeking to build back better, as safely as possible,” Taleblu suggested. “But the rate and the speed at which it rebuilds, probably in the short term, may outpace the rate and the speed at which Israel is rearming to defend itself.”

We detailed the overall battle of attrition between Iranian standoff weapons and Israeli (and U.S.) air defenses during the war. What is happening after the conflict is part of a broader issue with missile defense — the enemy can, and usually does, seek to outproduce the defensive capacity of the missile shield, and usually can at a lower comparative cost.

You can read more about Israel’s IADS in our deep dive here.

TEL AVIV, ISRAEL - 2025/06/21: An Israeli Air defense system intercepts a ballistic missile barrage launched from Iran to central Israel during the missile attack. (Photo by Eli Basri/SOPA Images/LightRocket via Getty Images)
An Israeli Air defense system intercepts a ballistic missile barrage launched from Iran to central Israel during the missile attack. (Photo by Eli Basri/SOPA Images/LightRocket via Getty Images) SOPA Images

Iranian officials say concerns about their missiles, as well as their nuclear energy program, are being used as a pretext for possible future attacks.

“What does this issue have to do with the West that it feels entitled to comment on the range of Iran’s missiles?” Secretary of the Supreme National Security Council Ali Larijani rhetorically asked on Monday. “No country has the right to interfere in the independent defensive capabilities of another nation.”

As it works to rebuild its missile arsenal, Iran is getting help from China.

“European intelligence sources say several shipments of sodium perchlorate, the main precursor in the production of the solid propellant that powers Iran’s mid-range conventional missiles, have arrived from China to the Iranian port of Bandar Abbas,” CNN reported late last month

Bandar Abbas (Google Earth)

The shipments, containing some 2,000 tons of sodium perchlorate, began arriving on Sept. 29, the cable network explained. They were bought by Iran from Chinese suppliers in the wake of the war.

“The purchases are believed to be part of a determined effort to rebuild the Islamic Republic’s depleted missile stocks,” the news outlet added. “Several of the cargo ships and Chinese entities involved are under sanctions from the United States.”

“China is appearing to play a key role here by providing precursor chemicals that do go into solid propellant, rocket fuel, and oxidizer,” Taleblu observed.

Beyond assisting Iran’s offensive missile capabilities, China is reportedly considering a deal to give Tehran advanced HQ-9 air defense systems to help make up for those destroyed by Israel during the 12-Day War. While Iran’s long-range weapons arsenal are often the focus, rebuilding the country’s air defenses is also clearly a top priority after Israel quickly obtained air supremacy over the country.

BEIJING, CHINA - SEPTEMBER 03: Military vehicles transport HQ-9C anti-aircraft missiles past Tian'anmen Square during V-Day military parade to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance against Japanese Aggression and the World Anti-Fascist War on September 3, 2025 in Beijing, China. (Photo by Sheng Jiapeng/China News Service/VCG via Getty Images)
Military vehicles transport HQ-9C anti-aircraft missiles past Tiananmen Square during V-Day military parade to commemorate the 80th anniversary of the victory over Japan in WWII. (Photo by Sheng Jiapeng/China News Service/VCG via Getty Images) China News Service

The issue of new Iranian missile production comes against the backdrop of concerns that Tehran has developed a new facility to continue what U.S. officials claim is its nuclear weapons ambitions. The U.S. says it destroyed a great deal of Iran’s ability to develop nuclear weapons during June’s Operation Midnight Hammer, in which U.S. Air Force B-2 Spirit stealth bombers dropped 14 30,000-pound GBU-57/B Massive Ordnance Penetrator (MOP) bunker buster bombs on Iran’s Fordow and Natanz nuclear facilities. A U.S. nuclear-powered, guided missile (SSGN) submarine in the Central Command Area of Responsibility launched more than two dozen Tomahawk land attack cruise missiles against key surface infrastructure targets at Isfahan, officials added.

The U.S. Air Force has awarded a contract for the development and production of a new Next Generation Penetrator (NGP) bunker buster bomb.
A B-2 bomber drops a GBU-57/B Massive Ordnance Penetrator (MOP) bunker buster bomb during a test. (USAF) USAF

However, as The New York Times noted, Iran “appears to be continuing to work on a new enrichment site known as Pickaxe Mountain. It has refused to give international inspectors access to that site or any other suspected nuclear sites other than those already declared.”

The result “is a dangerous stalemate — with no negotiations, no certainty over Iran’s stockpile, no independent oversight,” the newspaper explained. “And many in the Gulf believe that makes another Israeli attack on Iran almost inevitable, given Israeli officials’ long-held view that Iran’s nuclear program is an existential threat.”

The pace of Iran’s missile development could be a large factor for the timing of any future conflict with Israel, Taleblu told us.

“There is a race to build back better. For Israel, it’s interceptors. For the Islamic Republic of Iran, it’s medium-range ballistic missiles,” Taleblu posited. “The fuzzy math between the two may determine the time when the next round between Israel and Iran takes place.”

Contact the author: [email protected]

Howard is a Senior Staff Writer for The War Zone, and a former Senior Managing Editor for Military Times. Prior to this, he covered military affairs for the Tampa Bay Times as a Senior Writer. Howard’s work has appeared in various publications including Yahoo News, RealClearDefense, and Air Force Times.




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Interest rates expected to be held as Budget looms

Kevin PeacheyCost of living correspondent

Getty Images Man in shadow walks in from of the Bank of England buildingGetty Images

Policymakers at the Bank of England are widely expected to hold interest rates at 4% following their final meeting before the chancellor’s Budget.

Some Bank watchers have suggested that the latest inflation data could strengthen the case for a cut, but most commentators think such a move is more likely in December.

In September, the Bank’s governor Andrew Bailey said he still expected further rate cuts, but the pace would be “more uncertain”.

The Bank’s base rate has an impact on the cost of borrowing for individuals and businesses, and also on returns on savings.

Uncertainty over pace of cuts

The Bank’s Monetary Policy Committee (MPC) will make its latest announcement at 12:00 GMT with most analysts predicting a hold.

The Bank of England has reduced its benchmark interest rate by 0.25 percentage points every three months since August last year. However, that cycle is widely expected to be broken this time.

Members of the MPC will be closely considering the latest economic data on rising prices, as well as jobs and wages as they cast their vote on interest rates.

The rate of inflation in September was 3.8%, well above the Bank’s 2% target, but lower than expected. Within that data, food and drink prices rose at their slowest rate in more than a year.

That has eased some of the squeeze on family finances, and also led to some analysts, including at banking giants Barclays and Goldman Sachs, to predict a cut in interest rates this month to 3.75%.

They expect a split in the vote among the nine-member committee. For the first time, the views of each individual on the MPC will be published alongside the wider decision.

Danni Hewson, head of financial analysis at AJ Bell, said the market was giving a one in three chance of a rate cut to 3.75%.

“The odds are still firmly in favour of a hold,” she said.

All eyes on Budget

Members of the MPC will be fully aware of the potential implications of the Budget which will be delivered by Chancellor Rachel Reeves on 26 November.

The case for a cut in interest rates in December could be boosted if the Budget includes substantial tax rises that do not add to inflation.

The chancellor, in a speech on Tuesday, said measures in the Budget “will be focused on getting inflation falling and creating the conditions for interest rate cuts”.

However, detail remains thin until the Budget is delivered and more economic data will be published before the Bank’s next meeting in December that could sway MPC members’ thinking.

“It’s possible Rachel Reeves’ surprise press conference on Tuesday was partly a cry for help to the Bank of England,” AJ Bell’s Ms Hewson said.

“By promising to push down on inflation, she might have been signalling that the Bank didn’t have to wait until after the Budget to cut rates. Whether they do or not is a finely balanced call.”

The Bank’s interest rates heavily influence borrowing costs for homeowners – either directly for those on tracker rates, or more indirectly for fixed rates.

In recent days and weeks, many lenders have been cutting the interest rates on their new, fixed deals as they compete for custom, and in anticipation of future central bank rate cuts.

Savers, however, would likely see a fall in the returns they receive if the Bank cuts the benchmark rate on Thursday or in December.

Rachel Springall, from financial information service Moneyfacts, said many savers were feeling “demoralised” as a result of falling returns and still relatively high inflation, which reduces the spending power of their savings.

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