Global Pulse

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  • How the US-Iran war is costing China

    How the US-Iran war is costing China

    Escalating geopolitical friction between the United States and Iran has sent ripples across the global economy, and one nation that finds itself navigating a complex mix of challenges and openings is China. In an in-depth analysis from BBC correspondent Laura Bicker, the interconnected nature of global politics and economics means China is not a passive bystander to this regional standoff – it faces tangible economic headwinds even as it could secure quiet strategic advantages.

    First and most immediately, the conflict-driven disruption to energy markets has hit China’s bottom line. As the world’s largest crude oil importer, China relies heavily on stable supplies flowing through the Persian Gulf, a region that is immediately impacted by heightened US-Iran hostilities. When tensions spike, global oil prices invariably jump, inflating China’s import bills for energy. These higher costs trickle through the entire Chinese economy, pushing up operating expenses for manufacturers, raising transportation costs for domestic goods, and putting upward pressure on overall inflation. Beyond energy, broader trade routes through the Middle East also face increased risk of disruption, which raises shipping insurance premiums and creates delivery delays for Chinese goods heading to European and Middle Eastern markets, cutting into the competitiveness of Chinese exports.

    The political landscape, however, presents a different set of dynamics for Beijing. The ongoing focus of the United States on containing Iranian influence and managing conflict in the Middle East diverts American strategic attention and resources away from its competition with China. For years, the US has prioritized great power competition in the Indo-Pacific, but a sustained crisis with Iran forces the US to split its military, diplomatic and economic focus. This creates space for China to advance its own regional and global strategic goals, from expanding trade relationships across the Middle East through its Belt and Road Initiative to strengthening diplomatic ties with nations that are aligned against US policy in the region. Additionally, China can position itself as a neutral broker for peace between the two sides, burnishing its image as a responsible global power committed to diplomatic de-escalation.

    Bicker’s analysis notes that the balance of costs and benefits for China remains deeply dependent on how the conflict evolves. A full-scale, prolonged war would far outweigh any political gains, sending energy prices soaring to unsustainable levels and triggering a global recession that would devastate Chinese export demand. A low-intensity, prolonged standoff, on the other hand, allows China to absorb the limited economic costs while capitalizing on the strategic opportunities that come from a distracted United States.

  • Linyi strengthens global trade links through RCEP expo

    Linyi strengthens global trade links through RCEP expo

    The city of Linyi, located in China’s eastern Shandong province, is cementing its role as a key global trade nexus after successfully hosting the fifth RCEP (Shandong) Import Expo from April 20 to 22, 2026. The three-day trade event drew hundreds of international suppliers and thousands of business leaders from across the world, creating new pathways for cross-border commerce and strengthening economic ties under the Regional Comprehensive Economic Partnership framework.

    A China Daily US-based contributor, Douglas Dueno, was among the attendees who explored the expo’s vast exhibition halls, where vendors displayed a diverse array of goods from across the globe and pitched collaborative opportunities to visiting investors and buyers. Unlike regional trade events limited to single industry sectors, this expo welcomed participants from a wide range of product categories, spanning consumer goods to industrial materials, reflecting the broad scope of RCEP’s trade integration goals.

    Organizers confirmed that the event gathered exhibitors not only from all 15 RCEP member states but also from non-member economies seeking access to China’s massive domestic market and regional trade routes. In total, more than 400 international suppliers set up booths at the expo, while over 5,300 domestic Chinese and overseas buyers traveled to Linyi to source products, negotiate supply agreements, and build long-term business partnerships.

    What sets Linyi apart as a host for large-scale international trade events is its established position as one of China’s top logistics and wholesale trade hubs. For decades, the city has built out a robust infrastructure ecosystem that includes streamlined customs clearance, far-reaching domestic and international distribution networks, and cost-effective logistics solutions that cut down on transit time and operational costs for cross-border traders. These advantages have created a natural backbone for events like the RCEP Import Expo, enabling exhibitors and attendees to move goods faster across borders and reach new consumer markets across the Asia-Pacific and beyond.

    The successful holding of this year’s expo builds on Linyi’s growing reputation as a strategic gateway for regional trade, highlighting how RCEP’s tariff reduction and trade facilitation policies are unlocking new opportunities for businesses of all sizes across member and non-member economies alike.

  • Gansu-Hunan power line delivers 10 billion kWh in Q1

    Gansu-Hunan power line delivers 10 billion kWh in Q1

    China’s flagship West-to-East power transmission infrastructure has notched a major milestone in the first quarter of 2026, with the ±800 kilovolt Gansu-to-Hunan ultra-high voltage direct current (UHVDC) transmission line delivering more than 10 billion kilowatt-hours (kWh) of electricity, operator State Grid Gansu Electric Power Company has announced. To put this output in context, the volume is enough to meet the full annual electricity demand of roughly 2.95 million average three-member households across China.

    A core component of China’s national West-to-East power transmission strategy, the 2,383-kilometer transmission corridor stretches from the Qilian converter station in northwestern China’s Gansu province, across Shaanxi, Chongqing and Hubei, all the way to its final terminal at the Shaoshan converter station in central southern Hunan. Since the project entered commercial operation in June 2017, it has cumulatively transmitted more than 200 billion kWh of electricity across regional boundaries, marking it as one of the country’s most productive cross-regional energy arteries.

    What sets this 2026 milestone apart is the growing share of low-carbon energy in the transmission mix: more than 40 percent of the electricity moved via the line so far this year comes from renewable sources. The infrastructure has been instrumental in unlocking large-scale development of Gansu’s abundant wind and solar energy resources, enabling bundled transmission of wind, solar and thermal power from the resource-rich northwest to high power-demand regions in central China. Beyond supporting economic growth in Hunan and surrounding regions, the optimized cross-regional energy allocation brought by the UHV project directly advances China’s national carbon peaking and neutrality goals by increasing the share of renewables in the national energy mix.

    To maintain reliable output amid growing demand, the line has sustained extended high-load operation through the first three months of 2026, with daily transmission volume exceeding 100 million kWh on 41 days this year. As the operating entity responsible for the project, State Grid Gansu Ultra-High Voltage Company has made power supply security its top organizational priority, rolling out a series of enhanced monitoring and maintenance measures to avoid service disruptions.

    The company has upgraded its full-lifecycle safety management framework and integrated a suite of advanced inspection technologies into its operations, including automated routine inspections, drone-based remote monitoring, and infrared and ultraviolet defect detection. These tools have enabled the construction of an all-weather, multi-dimensional monitoring system covering every segment of the line and all core converter station equipment, boosting overall equipment reliability and guaranteeing consistent, stable delivery of clean energy across regions.

  • Airline company Lufthansa cuts 20,000 flights as war squeezes fuel prices and supplies

    Airline company Lufthansa cuts 20,000 flights as war squeezes fuel prices and supplies

    LAS VEGAS — A growing energy crisis triggered by the ongoing conflict around Iran has pushed one of Europe’s largest airline groups to slash thousands of scheduled flights, as carriers across the globe scramble to cope with skyrocketing jet fuel costs and looming supply shortages. Lufthansa Group, the parent company of Lufthansa Airlines and five other major European carriers, announced Tuesday that it will cut 20,000 short-haul flights from its schedule through the end of October, a move designed to conserve fuel and reduce exposure to volatile energy markets.

    The bulk of the canceled routes are low-profit short-haul services centered on the group’s two main hub airports in Germany, Frankfurt and Munich. The company estimates the flight cuts will save roughly 40,000 metric tons of jet fuel, a critical buffer as supplies tighten across the continent. The cuts are just the latest cost-cutting measure from the group: just last week, it shut down regional subsidiary CityLine to reduce operational overhead. The ongoing consolidation of the group’s European network will impact all of its operating carriers, including Austrian Airlines, Brussels Airlines, SWISS and ITA Airways, as well as secondary hubs across Brussels, Rome, Vienna and Zurich.

    The root of the crisis traces back to the outbreak of hostilities between the U.S.-Israel coalition and Iran in late February. Conflict near the Strait of Hormuz, the strategic Gulf waterway through which roughly 20% of the world’s daily oil supply transits, has roiled global energy markets and sent jet fuel prices soaring. In some regional markets, jet fuel prices have more than doubled since early March. For airlines, which count fuel as one of their largest single operating expenses, this sudden price shock has created immediate financial pressure.

    That pressure is already being passed on to consumers ahead of the peak summer travel season. Travelers are facing fewer available route options, alongside broad increases in fares, fuel surcharges and checked baggage fees across most major carriers.

    Warnings over looming jet fuel shortages in Europe have been growing more urgent in recent weeks. On April 16, the head of the International Energy Agency estimated that the continent only has roughly six weeks of jet fuel stockpiles remaining, and warned that carriers would be forced to cut schedules if additional supplies were not secured quickly. EU Energy Commissioner Dan Jørgensen reinforced that warning Wednesday, noting that the energy crisis sparked by the conflict could keep prices elevated for months, or even years.

    “This is not a short-term, small increase in prices,” Jørgensen told reporters in Brussels. The conflict is currently costing the European Union roughly 500 million euros ($600 million) every single day, he added. “Even in a best-case scenario, it’s still bad.” Jørgensen confirmed that EU national governments are deeply concerned about the risk of widespread jet fuel shortages, and while the European Commission is taking all available action to mitigate the crisis, the bloc is currently operating in a defensive posture focused on avoiding major disruptions.

    For its part, Lufthansa has stated that it has secured enough fuel to meet its operational needs for the coming weeks, and is pursuing a range of long-term measures to stabilize supply ahead of the busy summer travel period, including targeted bulk procurement of jet fuel.

    Lufthansa is far from alone in cutting back its flight schedule. Data from aviation analytics firm Cirium shows that 19 of the world’s 20 largest airlines have already canceled scheduled May flights across every major global region. Major carriers joining the cuts include U.S. giants Delta Air Lines, United Airlines and American Airlines, as well as Air Canada, Emirates, Qatar Airways, Air China, British Airways and Air France-KLM.

    Other smaller and mid-sized carriers have already announced deep, targeted cuts to their summer schedules. Last week, Swiss-based leisure carrier Edelweiss Air said it would drop all planned summer service to Denver and Seattle, and reduce frequency on its Las Vegas route through early autumn. New Zealand’s flag carrier Air New Zealand is consolidating approximately 4% of its scheduled services across May and June, with management noting that local jet fuel prices are currently double the normal seasonal average.

    Global market data underscores the severity of the price shock: benchmark jet fuel prices jumped from roughly $99 per barrel at the end of February to a peak of $209 per barrel in early April. Beyond canceling existing flights, many carriers are also rolling back plans for capacity growth this year to keep costs contained. Delta Air Lines, which opened U.S. airline first-quarter earnings season in early April, said it was scrapping planned capacity increases for June, leaving 3.5% fewer seats available for the month than it had initially projected.

    As U.S. carriers continue to release first-quarter earnings results, the uncertainty around future fuel prices has already hit corporate financial outlooks. Multiple major U.S. carriers have cut their full-year profit forecasts or declined to update projections amid the ongoing market volatility. On Wednesday, Southwest Airlines said it expects second-quarter earnings to come in well below Wall Street analyst estimates, citing persistent high fuel prices, and held its 2026 long-term outlook steady. A day earlier, United Airlines revised its full-year adjusted earnings forecast down to $7 to $11 per share, from an earlier projection of $12 to $14.

  • US weighs plan to send Afghans who helped with war effort from Qatar to a third country

    US weighs plan to send Afghans who helped with war effort from Qatar to a third country

    More than a year after former U.S. President Donald Trump halted his predecessor’s Afghan refugee resettlement program as part of sweeping immigration restrictions, controversial negotiations have emerged to relocate roughly 1,100 vulnerable Afghan evacuees stuck at a U.S. military base in Qatar to the Democratic Republic of Congo, multiple sources confirm.

    The group trapped at Camp As-Sayliyah in Doha includes Afghans who served alongside U.S. forces as interpreters and Special Operations support staff, as well as immediate family members of more than 150 currently serving American military personnel. They have been in limbo at the Qatari base for a full year, after the Trump administration’s executive order paused the resettlement pathway that thousands of vetted evacuees had already waited years to access. While the Doha base was originally planned only as a temporary transit hub for refugees bound for the U.S., it has become a long-term holding facility for this group.

    The #AfghanEvac coalition, a prominent advocacy organization working to support Afghan resettlement, has confirmed that Congo is under consideration as a third-country resettlement destination. Shawn VanDiver, a U.S. Navy veteran and leader of the coalition, said Wednesday that U.S. officials had informed advocacy groups of ongoing bilateral discussions between Washington and Kinshasa about accepting the stranded refugees. The U.S. State Department has acknowledged it is exploring options for voluntary third-country resettlement but declined to confirm which countries are involved in the talks.

    Critics warn that the proposal offers evacuees no genuine choice: the only alternatives on the table are resettlement in Congo or forced return to Taliban-controlled Afghanistan, where Afghans who assisted the U.S. during the 20-year war face near-certain reprisal and death. “You cannot call a choice voluntary when the two options are Congo and the Taliban, civil war or an oppressor who wants to kill you,” VanDiver stated during a virtual press briefing. “That is not a choice. That is a confession extracted under duress.”

    Multiple former U.S. officials and refugee advocates have raised urgent alarms about the safety risks of sending vulnerable Afghan allies to Congo. The United Nations has classified eastern Congo as facing one of the world’s most severe ongoing humanitarian crises, after decades of persistent conflict between government forces and armed rebel groups backed by neighboring Rwanda. Over 70% of Congo’s humanitarian aid was previously supplied by the U.S., and aid workers have documented preventable deaths in conflict zones following Trump administration cuts to American aid and trade support. Congo has also previously participated in controversial, multi-million dollar deals with the Trump administration to accept third-country deportees from the U.S. — a practice that has drawn widespread international criticism.

    Sean Jamshidi, an Afghan American U.S. military veteran who has served deployed in Congo, shared the deep concerns shared by many evacuee family members. His own brother is among the group stranded in Doha, and could be relocated to the African country. “I saw the security situation and what it looked like there. I saw the displacement camps… I stood in places where the United Nations has counted the dead,” Jamshidi said. “I’m telling you, as someone who has been in uniform, the Democratic Republic of the Congo is not a place you send vetted Afghan allies and their children to live.”

    For the evacuees trapped at the Doha base, uncertainty remains the only constant. Negina Khalili, an Afghan former prosecutor who fled Afghanistan during the 2021 U.S. withdrawal, has waited for updates on her father, brother, and stepmother since they arrived at the base in January 2025, just days before Trump suspended the resettlement program. When news broke that Congo was a potential destination, her family already expressed profound fear. “They are not giving them any information or updates regarding which countries they will go to,” Khalili told the Associated Press. “They were so stressed and worried about it and said that Congo is not a safe place either. They don’t know if it’s a temporary location for them there or a permanent location. They are worried.” Khalili added that U.S. officials at the camp have already begun offering refugees financial incentives to voluntarily return to Afghanistan.

    Congolese authorities have not yet issued a public response to requests for comment on the ongoing negotiations. The reporting was contributed by AP correspondents Amiri in New York, Asadu in Abuja, Nigeria, and AP writer Matthew Lee.

  • Germany forward Gnabry says his ‘World Cup dream’ is over

    Germany forward Gnabry says his ‘World Cup dream’ is over

    MUNICH — One of German men’s football’s most impactful attacking talents will not take the global stage this summer, as Bayern Munich forward Serge Gnabry has officially ruled himself out of the 2026 FIFA World Cup co-hosted by Mexico, Canada, and the United States following a serious thigh injury sustained in club training.

    The injury was first announced by Bundesliga champions Bayern Munich this past Saturday, when the club confirmed that Gnabry had suffered a tear to the adductor muscle in his right thigh. The statement only noted that the winger would be sidelined “for a longer period” and offered no additional specifics about the timeline of his recovery, prompting widespread speculation about his World Cup eligibility over the following days.

    On Wednesday, the 29-year-old ended all uncertainty with a personal announcement posted to his official Instagram account, confirming that the injury would force him to miss the June tournament. “The last few days have been tough to process. A Bayern season which still holds much to play for after securing another Bundesliga title on the weekend,” Gnabry shared in his post. “As for the World Cup dream with Germany. That’s sadly over for me.”

    The forward added that he plans to cheer on his national teammates from his home base in Germany while he focuses on rehabilitating the injury, with the goal of returning to full fitness in time for pre-season preparations ahead of the next club campaign. “Like the rest of the country, I’ll be supporting the boys from home. Now it’s time to focus on recovery and getting back for pre-season. Thank you for all the messages,” he wrote.

    Gnabry’s absence leaves a major gap in Germany’s attacking depth ahead of the tournament, after he turned in a standout campaign for Bayern Munich en route to the club’s latest Bundesliga title last weekend. He contributed eight goals and seven assists for the Bavarian side this season, as Bayern broke the league’s all-time record for total goals scored in a single campaign on their way to claiming the crown.

    At the international level, Gnabry was a core contributor to Germany’s qualifying campaign, starting every single World Cup qualifier for the national side. He also featured in two friendly matches for Die Mannschaft back in March, and was widely expected to be a key member of manager Julian Nagelsmann’s 26-man tournament squad. Germany is set to kick off their 2026 World Cup campaign in Group E, where they will face off against Curacao, Ivory Coast, and Ecuador.

    The 2026 World Cup, the first 48-team edition in tournament history, is scheduled to run from June 11 to July 19 across 16 host cities spread across the three North American co-hosts.

  • Peru’s defense and foreign ministers resign after the president stalls US military planes deal

    Peru’s defense and foreign ministers resign after the president stalls US military planes deal

    Political turbulence has erupted in Peru this week, as the nation’s defense and foreign ministers stepped down from their posts Wednesday following interim President José María Balcázar’s decision to push a $3.5 billion U.S.-built F-16 fighter jet purchase decision to the next elected administration. The abrupt resignations have thrown a fresh spotlight on Peru’s ongoing political instability and its delicate diplomatic and defense ties with Washington.

    Balcázar, who was sworn in as Peru’s eighth president in just 10 years after his predecessor was ousted over corruption allegations just four months into office, announced last week that he would forgo finalizing the purchase of 24 Lockheed Martin F-16 jets. He argued that as a temporary transitional leader, he lacked the democratic mandate to commit the country to such a massive long-term financial obligation. “For us to commit such a large sum of money to the incoming government would be a poor practice for a transitional government,” Balcázer stated at the time.

    The U.S. ambassador to Peru, Bernie Navarro, quickly issued a sharp public warning on social media platform X after the announcement. Navarro threatened unspecified measures against Peru if the country was found to be “negotiating in bad faith” or acted to undermine U.S. interests, though he offered no additional details on what actions he might pursue.

    Just days after the interim president’s announcement, Defense Minister Carlos Díaz and Foreign Minister Hugo de Zela resigned. Speaking at a joint press conference Wednesday, the pair confirmed they had made multiple unsuccessful attempts to convince Balcázar to move forward with the deal as planned. Díaz’s resignation letter, obtained by the Associated Press, warned that postponing the procurement could cause serious harm to Peru’s long-term national defense interests.

    In a revealing twist, Díaz disclosed that senior Defense Ministry officials had already formally signed the purchase contract on Monday, in line with the agreed timeline of the procurement process, even without Balcázar’s formal approval. De Zela, speaking to a local Peruvian radio outlet, accused Balcázar of misleading the Peruvian public about the status of the contract. Both officials have confirmed that core details of the deal remain classified and cannot be released publicly, a standard procedure for major defense procurement agreements.

    The $3.5 billion procurement plan was first launched under the administration of former President Dina Boluarte in 2024. The procurement program outlines that Peru will cover the cost through $2 billion in domestic borrowing in 2025, followed by an additional $1.5 billion in 2026. Three major global defense firms submitted bids for the contract: U.S. defense giant Lockheed Martin with its F-16 platform, Sweden’s Saab, and France’s Dassault Aviation.

    Peru is currently in a period of political transition ahead of a presidential runoff election scheduled for June 7. The first round of voting was held on April 12, and election officials are still processing ballots from remote Andean regions and overseas Peruvian consulates. The political upheaval over the fighter jet deal is the latest in a decade-long streak of leadership instability that has shaken the South American nation, with Balcázar becoming the eighth person to hold the presidency since 2014.

    This development comes as unrelated political friction has already roiled Peru’s election process: the nation’s top election official resigned earlier this year over widespread logistical failures in the hotly contested presidential race, and a Peruvian court has set a May 15 deadline for officials to complete the full counting of first-round ballots.

  • Buenos Aires bans stadium confetti after fire sparks panic at River vs Boca

    Buenos Aires bans stadium confetti after fire sparks panic at River vs Boca

    For nearly half a century, the colorful cascade of confetti raining down from stadium stands has been one of the most recognizable and beloved traditions in Argentine soccer culture, copied by fan groups across the world. But that longstanding custom is now illegal in Argentina’s capital, after a recent blaze at one of the country’s most high-profile matches prompted city officials to implement a permanent ban.

    The Buenos Aires Sports Security Committee announced the “preventive” prohibition on confetti use at all Buenos Aires district stadiums this Wednesday. The policy change comes in direct response to a fire that broke out last Sunday during the fiercely contested matchup between Argentine soccer giants River Plate and Boca Juniors at Buenos Aires’ Monumental Stadium.

    The flames, which ignited amid thrown confetti, damaged multiple stadium seats and triggered a panicked evacuation of nearby spectators before firefighters could arrive and fully extinguish the blaze. No serious injuries were reported in the incident, but the event exposed significant safety hazards that officials say could not be ignored.

    In an official statement following the ban, city authorities noted that even when host clubs pre-approve safety contingency plans and allocate the full resources required to implement those protocols, the incident last weekend proves that lightweight paper confetti carries an inherent flammability risk that cannot be mitigated in large, crowded event venues. “This incident clearly demonstrates the potential ignition risk that these materials pose in contexts with high concentrations of people,” the committee’s statement read.

    In the lead-up to last Sunday’s match, River Plate’s official supporters’ subcommittee had urged fans to cut thousands of confetti pieces ahead of time to create a vibrant, colorful welcome for the team, nicknamed the “Millionaires.” The match ultimately ended in a 1-0 victory for Boca Juniors, secured by a first-half penalty kick from player Leandro Paredes.

    The tradition of fan-thrown confetti at Argentine soccer matches first rose to mainstream popularity during the 1978 FIFA World Cup, which was hosted by Argentina. The eye-catching, celebratory practice quickly became a staple of domestic match culture, and spread to fan bases in soccer leagues around the world in the decades after its debut.

  • Israelis blow up house in southern Lebanon ‘in memory’ of slain soldier

    Israelis blow up house in southern Lebanon ‘in memory’ of slain soldier

    Weeks into a fragile nominal truce between Israeli forces and the Lebanese armed group Hezbollah, Israeli operations in southern Lebanon continue, with newly released footage showing one of the latest strikes carried out as a memorial to a fallen Israeli soldier.

    The video of the attack was shared publicly to the social platform X by far-right Israeli journalist Yinon Magal, who confirmed that the targeted structure was a residential home in Kfar Kila, a border village in southern Lebanon. The strike was executed by Israel’s Battalion 7106 using a remote weapons system, according to the footage.

    In his post accompanying the video, Magal clarified that the detonation was timed to coincide with a memorial siren held for Lidor Porat, a 31-year-old Israeli soldier from the city of Ashdod who was killed the previous weekend. Porat died after the military vehicle his unit was traveling in struck an improvised explosive device, which Israeli officials attribute to Hezbollah operatives. The journalist noted Porat was a member of his battalion’s support unit, killed on Motzaei Shabbat—the evening period that closes the Jewish weekly sabbath.

    Porat’s death brings the total number of Israeli service members killed in cross-border and ground operations in Lebanon to 15, a death toll that has accumulated since February 28, when a joint US-Israeli offensive against Iran dragged multiple regional armed factions into the expanding conflict.

    Even though a ceasefire agreement between Israel and Hezbollah formally entered into force last Friday, Israeli military activity has not ceased in the southern Lebanese border region. Israeli defense officials argue that the terms of the truce allow them to take military action to counter any planned, imminent, or active attacks against Israeli targets.

    Just on Tuesday, the Israel Defense Forces announced it had killed two individuals it described as “terrorists who violated the ceasefire understandings” in the Saluki area of southern Lebanon. The Israeli government has repeatedly reaffirmed its long-term goal of maintaining permanent military control over southern Lebanon, a territory Israel occupied from 1982 until its full withdrawal in 2000.

    Diplomatic movement is unfolding alongside continued military operations: the ambassadors of Lebanon and Israel to the United States are scheduled to hold a second round of talks in Washington DC this Thursday. Their first meeting last week marked the first direct diplomatic encounter between the two nations’ top envoys to the US since 1993.

    In the hours immediately after the ceasefire was announced, tens of thousands of Lebanese civilians who had been displaced by months of fighting began traveling back to their homes in southern Lebanon, ignoring official Israeli warnings to avoid the region. Many of those who returned have since been forced to retreat back to shelters in Beirut and other safer areas of the country after discovering widespread damage to their residential areas, with no access to critical utilities including electricity and basic internet connectivity.

    Israeli forces have maintained military positions south of the Litani River to monitor alleged Hezbollah activity, and have repeatedly warned Lebanese civilians against returning to that zone. Both the Lebanese national army and Hezbollah have also echoed warnings urging residents of southern Lebanon, Beirut’s southern Dahieh suburb, and the Bekaa Valley to delay their return home until security and infrastructure conditions can be stabilized to protect civilian safety.

  • US ‘won’t dictate terms’ of free trade talks, says PM Carney

    US ‘won’t dictate terms’ of free trade talks, says PM Carney

    Tensions are running high ahead of the mandatory mid-term review of the United States-Mexico-Canada Agreement (USMCA), with Canadian Prime Minister Mark Carney drawing a firm line against Washington’s attempts to dictate trade negotiation terms.

    Carney made clear this week that Ottawa will not accept one-sided demands from the United States ahead of upcoming bilateral talks, rejecting framing that casts Canada as a supplicant to U.S. interests. “It’s not a case where there is someone making demands, and a supplicant,” Carney told reporters. “It’s not a case that the United States dictates the terms. We have a negotiation, we can come to a mutually successful outcome – it will take some time.”

    Carney’s comments come amid deep public rifts between the two neighboring trade partners, after top U.S. trade official Jamieson Greer told members of Congress this week that Canada and the U.S. remain fundamentally misaligned on core trade priorities. Greer accused Canada of doubling down on outdated globalist trade frameworks even as Washington works to address the economic downsides of decades of unregulated globalization.

    The three North American trade partners face a mandatory 1 July 2026 deadline to complete the scheduled review of the 2018 USMCA deal, which replaced the earlier NAFTA agreement. While Mexico will launch formal bilateral negotiating rounds with the U.S. in May – following a recent meeting between Greer and Mexican President Claudia Sheinbaum – formal U.S.-Canada talks have not yet begun, though lower-level trade officials have maintained behind-the-scenes contact.

    To prepare for the talks, Carney convened a new cross-party advisory committee on U.S.-Canada trade relations this week, with the group’s first inaugural meeting scheduled for next week. Former Quebec Premier Jean Charest, a member of the new committee, told Canadian public broadcaster Radio-Canada that the U.S. is already demanding sweeping concessions from Ottawa even before formal talks get underway.

    Among the top sticking points is Canada’s decades-old dairy supply management system, a long-running irritant for U.S. agricultural interests. U.S. Commerce Secretary Howard Lutnick repeated Washington’s criticism this week, telling a Senate committee that Canada treats American dairy producers “poorly,” echoing former President and current U.S. political figure Donald Trump’s 2025 claims that Canada charges extraordinary tariffs of up to 400% on U.S. dairy imports.

    Canada’s supply management system strictly controls domestic production and import volumes to support the livelihoods of Canadian small-scale dairy farmers, allowing a set quota of U.S. dairy imports to enter Canada tariff-free. Data from the U.S. Department of Agriculture confirms that the U.S. has never actually hit that import quota limit, despite ongoing complaints.

    Canadian Trade Minister Dominic LeBlanc drew a clear red line on dairy negotiations this week, telling the *Globe and Mail* that the issue is non-negotiable for Ottawa. “We’ve been very clear with them,” LeBlanc said. He added, however, that Canada is prepared to address most other U.S. concerns, as long as talks progress as part of a balanced, comprehensive broader agreement.

    Other outstanding points of friction include Canada’s earlier decision to remove U.S. liquor from retail shelves in retaliation for U.S. tariffs, which Lutnick this week called “disrespectful.” Canada has already made one major concession to the U.S. in recent months, dropping a planned digital tax on large U.S. tech firms last June after the Trump administration flagged the policy as a major trade irritant.

    While both sides remain committed to restarting formal talks, senior officials on both sides have acknowledged that a final deal is unlikely to be reached before the 1 July deadline. If no agreement is reached by the deadline, the USMCA will move to annual review cycles until the full agreement expires in 2036. Greer emphasized this week that Washington’s core goal in the renegotiation is to preserve U.S. market access to Canada and Mexico, leaving the ultimate trajectory of the trilateral trade deal hanging in the balance.