Zim Current Affairs
June 19, 2025 at 11:24 PM
*Evening News Round-up: Thursday 19 June 2025*
*Headlines*
*Mnangagwa Inspects Gold Reserves At RBZ*
*Former Deputy Minister of Finance and Mutoko North legislator Dr David Chapfika Dies*
*Teachers Seek ILO Intervention*
*No Wonder The President Did Not Tour Hospitals With You: Opposition MP Taunts Health Minister, Chucked Out Of National Assembly*
*10 Injured After Light Aircraft Flying Tourists Crash-lands In Mbire*
*Kasukuwere Bemoans Corruption, Cruelty As His Friend Is ‘Jailed’*
*Mnangagwa Regime Threatens To Punish Those Denouncing Corruption…*
*...As Businessman Wicknell Chivayo Shows Off Brand New Rolls-Royce Cullinan*
*Julius Malema Banned From UK By Home Office*
*West Africa Wants Deals With Trump But US Entry Bans A Barrier, Nigerian Minister Says*
*Kenya Parliament Passes Proposed 2025 Finance Law*
*Iran Held Direct Talks Wit h US Amid intensifying Conflict With Israel, Diplomats Say*
*EU Increasingly Resigned To 10pc Baseline Tariff In US Trade Talks, European Sources Say*
*Air India Says One Engine On Crashed Plane Was New*
*Real Madrid Star Mbappe Hospitalised At FIFA Club World Cup*
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*Stories in Detail:*
*Mnangagwa Inspects Gold Reserves At RBZ*
President Emmerson Mnangagwa on Thursday morning conducted a high-profile inspection of Zimbabwe's gold reserves held in the Reserve Bank of Zimbabwe (RBZ) vaults, following his directive for the country to build gold stockpiles to anchor its national currency.
The visit comes as Zimbabwe's strategic gold holdings have now surpassed the critical three-tonne benchmark, positioning the country sixth on the African continent in terms of official gold reserves. Algeria currently tops the list.
President Mnangagwa's visit underscored his administration's commitment to strengthening the fundamentals behind the recently introduced Zimbabwe Gold (ZiG) currency, which is backed by the country's mineral wealth—primarily gold.
"This milestone is a direct result of the policy decision made two years ago to accumulate gold reserves as a foundation for a stable and sovereign national currency," the President said during the inspection. "We are building a financial architecture that is firmly anchored in our natural endowments."
The RBZ gold reserves have been steadily growing under a deliberate accumulation programme, which involves local gold purchases and refined production stored under secure conditions at the central bank.
RBZ officials who accompanied the President said Zimbabwe's continued investment in gold not only boosts confidence in the local currency but also enhances the country's ability to withstand global financial shocks.
"With escalating geopolitical uncertainties, many economies are returning to gold as a secure asset. Zimbabwe's position as a noted gold producer puts it in good stead to align with this global trend," said one RBZ official.
The shift toward building gold reserves aligns with broader global economic patterns, where gold is increasingly being treated as a hedge against inflation and currency volatility. Zimbabwe's approach mirrors that of countries such as Russia, China, and Turkey, which have significantly ramped up their gold holdings in recent years.
President Mnangagwa emphasized that the accumulation of gold is part of a long-term national resilience strategy and a key pillar of the Second Republic's economic reform agenda.
The government has also introduced several initiatives to formalize the gold sector, increase output, and curb illicit mineral trade, with the aim of ensuring that the country's vast resources benefit national development goals.
Zimbabwe produced over 30 tonnes of gold in 2024, according to official figures, with a significant portion now being retained by the central bank under the reserve strategy.
As the ZiG currency continues to stabilize and gain public confidence, authorities hope the gold reserves will serve not only as a symbol of sovereignty but also as a tangible asset backing a sustainable economic future.
*Former Deputy Minister of Finance and Mutoko North legislator Dr David Chapfika Dies*
Former Deputy Minister of Finance and long-serving ZANU PF politician David Chapfika has died in a fatal road accident near Chabwino, along the bridge at Stondon, authorities confirmed on Thursday.
Chapfika, a veteran legislator who once represented Mutoko South Constituency and served in various key roles within ZANU PF - including his current position in the party’s Central Committee - was driving a Mercedes-Benz ML when the vehicle collided with another car. He died instantly at the scene.
Police are still investigating the circumstances of the crash, and details of the other occupants involved, if any, were not immediately available.
The news of Chapfika’s death has sent shockwaves across political circles and his home district of Mutoko, where he was known for his loyalty to the ruling party and long-standing service in both Parliament and government.
Chapfika previously served as Deputy Minister of Finance during the era of former President Robert Mugabe and was instrumental in shaping various fiscal policies in the early 2000s. A qualified economist, he also served on several parliamentary committees during his political career.
In 2021, Chapfika was the subject of false reports claiming he had died from COVID-19-related complications—claims that were publicly refuted. Sadly, this time, his passing has been confirmed by both family members and party officials.
In recent years, Chapfika had largely retreated from frontline politics.
*Teachers Seek ILO Intervention*
TEACHERS are seeking the intervention of the International Labour Organisation (ILO) in their ongoing labour dispute with the government over working conditions and salaries.
The educators said they approached ILO after submitting a petition and getting no joy from their employer including President Emmerson Mnangagwa over a basket of grievances.
In May, unions representing teachers petitioned the Finance ministry as well as the Public Service Commission (PSC) demanding a formal response to their grievances.
The Zimbabwe Teachers Association (Zimta) had submitted a similar petition before the schools opened.
The Progressive Teachers Union of Zimbabwe (PTUZ) later sent a delegation to President Emmerson Mnangagwa’s office requesting his intervention in the resolution of their grievances and various challenges bedevilling the education sector.
The PTUZ delegation did not meet Mnangagwa, it submitted a petition in which it warned the President that the education system was crumbling under his watch.
Teachers are decrying low salaries and are demanding to be paid at least US$540 per month by their employer, which they were earning before October 2018.
Currently, teachers earn an average of US$250 per month and around ZiG3 000.
In a letter dated June 11, 2025, addressed to Karen Curtis, ILO chief — Freedom of Association Branch — Amalgamated Rural Teachers Union of Zimbabwe (Artuz) stressed its disappointment with government’s lack of urgency in addressing the educators' grievances.
"We note with disappointment that the government seems not to be taking this matter seriously," Artuz leader Obert Masaraure stated.
"To date, the only feedback we have received was an informal call from the Zimbabwe Congress of Trade Unions, ZCTU, requesting us to propose two conciliators for the process.
"This request was made on 21 March 2025 and to date we have not received any feedback on progress despite our efforts to inquire through the ZCTU."
"We were hopeful that by now we could have engaged and resolved the raised complaint and subsequent issues that arose post filing the complaint."
Curtis acknowledged receipt of the letter and pledged to facilitate dialogue between the union and the government.
"I acknowledge receipt of your communication dated 11 June, 2025 by which you forward additional information relating to the complaint of infringement of trade union rights which was presented by your organisation against the government Zimbabwe," Curtis said in response.
"In accordance with the procedure in force, the contents of your communication will be transmitted to government for its observations thereon."
Masaraure complained that educators were facing systematic persecution for demanding redress to their grievances.
"On 12 May, 2025, suspected State agents broke into our offices ahead of a planned legitimate job action. The intruders dismantled office surveillance equipment and went through files kept at the office," Masaraure claimed.
"On 24 April, 2025, the Zimbabwe Republic Police blocked the hosting of the elective congress of the union. The congress was only allowed to proceed on condition that the union agreed to allow seven police officers to join all the proceedings of the programme."
Early this week, nine Artuz members were arrested in Mutare, Manicaland province, after participating in a peaceful demonstration on Tuesday.
The group delivered a petition to PSC after the mini-protest.
Artuz condemned the arrest of its members saying it was in violation of section 59 of the Constitution which speaks to the right to peaceful petitioning and demonstration.
"Artuz will be engaging the Zimbabwe Human Rights Commission and the International Labour Organisation to register this gross abuse of human and workers’ rights," Artuz said.
The Parents Teachers Association joined Artuz in calling for the immediate release of the detained teachers.
Government previously said it was seized with addressing the plight of its employees. *Newsday*
*No Wonder The President Did Not Tour Hospitals With You: Opposition MP Taunts Health Minister, Chucked Out Of National Assembly*
CITIZENS Coalition for Change (CCC) MP Charlton Hwende was on Wednesday removed from the National Assembly for taunting Health Minister Douglas Mombeshora over his exclusion from President Emmerson Mnangagwa’s visits to Harare’s public referral hospitals.
Manicaland CCC legislator Prosper Mutseyami had brought a policy question on access to health services in public health institutions.
"What steps is the government taking to improve access to affordable health care and ensure the availability of essential medicines in public hospitals and clinics across the country?" Mutseyami asked.
In his response, Mombeshora tried to give a background on the patient treatment processes in the country using the Shona language, despite the question being asked in English.
This did not satisfy Hwende, who said, "On a point of order, the question was asked in English. The Standing Orders are clear that the Hon. Minister should respond in English."
The deputy speaker reminded Hwende that the law said otherwise.
After Mombeshora gave a lengthy explanation, Hwende interjected and told Mombeshora that his response was not adequate, and this was one of the reasons why President Emmerson Mnangagwa left him and his deputy behind when he visited Parirenyatwa and Sally Mugabe Hospitals on Monday.
"Ndosaka makatizwa na President pavakaenda ku Parirenyatwa (That is why the President left you when he visited Parirenyatwa hospital)," shouted Hwende.
Hwende was immediately shown the exit by Gezi.
Hwende tried to resist the order, saying: "Minister havasi kupindura mubvunzo, ngavapindure mubvunzo, ndobudirei? (The minister is not answering the question. Why should l leave this house?)"
Gezi did not tolerate any of Hwende’s appeals and the MP was escorted out of the Chamber by the Serjeant-At-Arms, leading to several ‘Points of Order’ by other opposition members.
"On a point of order Madam Speaker. The Standing Rules and Orders say that before someone is chased out of the House, he must be informed of what his offence is," MP Makumire stated.
On another point of order, CCC MP Gladys. Hlatswayo requested the minister to answer the question raised by Mutseyami.
"We kindly request the minister to answer the question. If he seeks to elaborate further or if he wants us to know what is happening in the health sector, he can come up with a Ministerial Statement. There is a direct question, and he just needs to answer the question."
Another MP, Rungwave, stood up on a point of order and asked the minister to respond to the question instead of giving a historical background.
A distraught Gezi said, "So, have you decided to disrupt the operations of the House with points of order?"
Gezi responded by ordering the MPs to take their seats for house business to continue. *NewZW*
*10 Injured After Light Aircraft Flying Tourists Crash-lands In Mbire*
Ten people were injured on Wednesday evening after a light aircraft flying from Harare to Kafue National Park in Mozambique was forced to make an emergency landing at an air strip in Mbire, Mashonaland Central.
Witnesses said the Beech 200 Super King Air (Registration ZS-TAE) attempted a landing at Kanyemba airstrip but overshot the runway, stopping in the middle of tall grass.
Tengo Mugonapanja, the local village head, told the ZBC that the plane was flying tourists from Harare to a game park in Mozambique.
He said the passengers suffered minor injuries and the pilot had appeared "visibly shaken."
The aircraft will require some repairs before it can fly again. *ZimLive*
*Kasukuwere Bemoans Corruption, Cruelty As His Friend Is ‘Jailed’*
Former ZANU PF national political commissar and cabinet minister Saviour Kasukuwere has bemoaned rampant in the country and cruelty.
Kasukuwere’s sentiments comes at the time his right hand man, Walter Mzembi is in custody facing criminal charges. Mzembi was arrested nearly two weeks ago after he returned from self imposed exile in Zambia.
He was accused of skipping court appearance after being arrested for criminal abuse of office.
“Double C. Corrupt and Cruel . In both instances it’s to the maximum!
“Sleeping fully aware that we have a thief around !!! Muchiziva kuti uyu ANOBA..
“As Mtukudzi would say! Uchiziva kuti unahwo hutachiona,” Kasukuwere posted on his X handle.
*Mnangagwa Regime Threatens To Punish Those Denouncing Corruption…*
ZANU PF Member of Parliament for Zvimba South, Taurai Malinganiso, has lashed out at individuals who speak out against corruption in Zimbabwe, saying such actions show a “lack of patriotism.”
Speaking in the National Assembly, Malinganiso criticized those who make unsubstantiated claims about corruption in the country.
“Saying Zimbabwe is full of corruption which cannot be proved is lack of patriotism,” he said. He added that such statements amount to “wrong marketing altogether.”
“Lack of patriotism. Without fear or favour, that is a lack of patriotism,” Malinganiso emphasized.
His remarks come after the government recently enacted a controversial law aimed at punishing so-called unpatriotic behavior. Officially titled the Criminal Law Codification and Reform Amendment Act, 2023, the legislation was signed into law by President Emmerson Mnangagwa on July 14, 2024.
Critics argue the law — popularly known as the “Patriotic Act” — is a tool to suppress dissent and restrict political and civil freedoms in a nation ruled by ZANU PF since independence in 1980.
The Mnangagwa administration insists the new law is necessary to protect national interests and ensure accountability. It gives the state sweeping powers to monitor and penalize political organizations, activists, and journalists who speak out against the government. Offenses classified as “unpatriotic” under the Act can carry severe penalties, including the death sentence.
*...As Businessman Wicknell Chivayo Shows Off Brand New Rolls-Royce Cullinan*
Zimbabwean tender businessman and Mnangagwa sidekick Wicknell Chivayo has taken to his social media to showcase his brand-new Rolls-Royce Cullinan.
Chivayo was in the company of his wife, sister and nephew while he was handed over his car. After the grand showing of the car, the family was served luxurious chocolates as they swooned over the ride. They all congratulated him by hugging him and praising the grandeur of the vehicle.
The post he shared on Facebook was captioned:
Vakomana NDIRI BABA WENYU
This translates to I’m your father which is slang for I’m bigger than you.
In a Facebook post, Chivayo shared a video showing him being presented with the car at the dealership.
Together with some of his family members, the businessman was mesmerised after setting eyes on the new addition to his multi-million dollar car collection.
This comes a few days after he spoiled his wife with a luxury Mercedes Benz G Wagon. The businessman shared a video in which the saleslady at the Rolls-Royce dealership unveiled his new ride.
*Julius Malema Banned From UK By Home Office*
A controversial South African opposition MP, central to a row over race relations in the country, has been denied entry to the UK.
The Home Office said Julius Malema had been deemed "non-conducive to the public good" and that it was "undesirable" to grant him entry.
In a letter released by Malema's party, the Home Office cited his vocal support for Hamas, including a speech he made after the 7 October attacks in which he said his own party would arm the group if it came to power.
The UK said Malema had made "statements calling for the slaughter of white people [in South Africa] or hinted that it could be an acceptable option in the future", and also cited this as a reason for its decision.
His Economic Freedom Fighters (EFF) party, which came fourth in South Africa's parliamentary election last year, condemned the decision as "cowardice" and said it would stifle democratic debate.
The EFF said the UK had distorted Malema's views on how the "genuine frustrations of Africans who are excluded [from the economy] at the behest of a white minority may lead to social violence and resistance" in South Africa.
Malema and the party would not "trade" their "revolutionary beliefs in exchange for a visa", the EFF said.
"The UK and all of its allies can keep their visas, and we will keep our Africa and a commitment to support the oppressed of the world, especially the Palestinian people," the party added.
Malema featured prominently in a video played last month by President Donald Trump during a visit by South African President Cyril Ramaphosa to the White House.
In the video, Malema is seen singing "Shoot to kill" and "Kill the Boer", which Trump says incites violence against the ethnic Afrikaner group.
However, South Africa's Supreme Court of Appeal has ruled that the lyrics do not amount to hate speech and were a "provocative way" of advancing the EFF's political agenda - which was to end "land and economic injustice" .
The court added that a "reasonably well-informed person" would understand that when "protest songs are sung, even by politicians, the words are not meant to be understood literally, nor is the gesture of shooting to be understood as a call to arms or violence".
*Unpacking the South African land law that so inflames Trump*
Malema is a fierce critic of what he sees as "Western imperialism", and advocates the nationalisation of white-owned land in South Africa to address the legacy of colonialism and the racist system of apartheid.
White-minority rule ended in South Africa in 1994, with the rise of Nelson Mandela and his African National Congress (ANC) to power.
This is the second time Malema has been denied entry to the UK in just two months.
The first time the UK government said he had submitted his application too late – this time, a British official in South Africa told the BBC it was a "substantive decision".
The Home Office said he has no right of appeal and was likely to be denied any future applications, according to the letter released by the EFF.
A Home Office spokesperson told the BBC: "It is our longstanding policy not to comment on individual cases."
Some of Malema's critics in South Africa are likely to welcome the UK's decision, and will hope that he will be more cautious in his public statements in the future.
But his supporters are likely to argue that he is being targeted for expressing views that the UK finds uncomfortable.
Official statistics show that South Africa's unemployment rate has risen to 33%, with black people being worst-affected.
The EFF's support-base, made up largely of young people, believes that more radical action is needed to tackle racial inequality and injustices.
The party got less than 10% of the vote in last year's election, and fell from third to fourth spot after losing support mostly to former President Jacob Zuma's uMkhonto weSizwe (Spear of the Nation) party. *BBC*
*West Africa Wants Deals With Trump But US Entry Bans A Barrier, Nigerian Minister Says*
West African nations want to strike deals with the U.S. over energy and rare earth minerals, but the Trump administration's looming expansion of travel bans risks derailing those efforts, Nigeria's foreign minister said on Wednesday.
U.S. President Donald Trump this month implemented full or partial travel bans for foreign nationals from a dozen countries as part of his immigration crackdown. A possible broadening of the restrictions to an additional 36 countries would include nearly all of West Africa.
"This would be most unfortunate if it comes to pass, because we are a region of opportunities ready to do deals," said Nigeria's Yussuf Tuggar, who currently chairs regional bloc ECOWAS's council of foreign ministers.
President Trump has upended longstanding trade relations since returning to the White House, using erratic tariff threats and aggressive tactics in a bid to secure better deals from trading partners.
As part of an agreement with Beijing, for example, Trump said China will supply the U.S. with magnets and rare earth minerals critical to the auto and battery industries in exchange for Chinese students' continued access to U.S. universities.
"We possess critical minerals and even rare earths," Tuggar told West African government ministers, citing the example of samarium - used for military-grade magnets and nuclear reactor control rods - found in his home state in Nigeria.
"We would like to do deals with the U.S., but visa restrictions are non-tariff barriers to deals," he said.
He also touted the oil and gas-rich region as an energy partner.
"We are also a strategic alternative to more distant and politically divergent energy producers. So, we will do deals for our prosperity. The only question is with whom," he said.
The U.S. has cited reasons for the bans including governments' failure to produce reliable identity documents, corruption, and high volumes of visa overstays by certain countries' citizens. *Reuters*
*Kenya Parliament Passes Proposed 2025 Finance Law*
Kenya's parliament on Thursday voted to approve this year's proposed finance law, denying the revenue authority's request to get unrestricted access to taxpayers' data on account of privacy concerns and constitutional safeguards.
The government is under pressure to avoid a repeat of last year's unrest after protests against proposed tax hikes led to over 60 deaths and forced President William Ruto to abandon plans to raise 346 billion shillings in taxes.
Lawmakers voted by acclamation to approve this year's law, clearing the way for President Ruto to sign and approve it.
Kenya's parliamentary finance committee rejected on Monday a proposal that would have granted the Kenya Revenue Authority (KRA) the access to the data.
The provision included in this year's finance bill had drawn a public backlash over alleged privacy violations. The committee said existing laws allowed KRA to access financial data with a court warrant, rendering the proposal unnecessary.
Finance Minister John Mbadi last week presented to parliament a 4.29 trillion-shilling ($33 billion) budget for the 2025/26 (July-June) fiscal year.
This year's finance law aims to raise an extra 30 billion shillings ($233 million), mainly through boosting tax compliance. *Reuters*
*Iran Held Direct Talks Wit h US Amid intensifying Conflict With Israel, Diplomats Say*
U.S. special envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi have spoken by phone several times since Israel began its strikes on Iran last week, in a bid to find a diplomatic end to the crisis, three diplomats told Reuters.
According to the diplomats, who asked not to be identified due to the sensitivity of the matter, Araqchi said Tehran would not return to negotiations unless Israel stopped the attacks, which began on June 13.
They said the talks included a brief discussion of a U.S. proposal given to Iran at the end of May that aims to create a regional consortium that would enrich uranium outside of Iran, an offer Tehran has so far rejected.
U.S. and Iranians officials did not immediately respond to a Reuters request for comment on the matter.
This week's phone discussions were the most substantive direct talks since the two began negotiations in April. On those occasions, in Oman and Italy, the two men exchanged brief words when they encountered each other after indirect talks were held.
A regional diplomat close to Tehran said Araqchi had told Witkoff that Tehran "could show flexibility in the nuclear issue" if Washington pressured Israel to end the war.
A European diplomat said: "Araqchi told Witkoff Iran was ready to come back to nuclear talks, but it could not if Israel continued its bombing."
Other than brief encounters after five rounds of indirect talks since April to discuss Iran's decades-old nuclear dispute, Araqchi and Witkoff had not previously held direct contacts.
A second regional diplomat who spoke to Reuters said "the (first) call was initiated by Washington, which also proposed a new offer" to overcome the deadlock over clashing red lines.
*URANIUM ENRICHMENT*
U.S. President Donald Trump wants Tehran to end uranium enrichment on its soil, while Iran's Supreme Leader Ayatollah Ali Khamenei has said Tehran's right to enrichment is non-negotiable.
Trump has been keeping his cards close to his chest over whether he will order U.S. forces to join Israel's bombing campaign that it says aims to destroy Iran's nuclear programme and ballistic capabilities. But Trump offered a glimmer of hope that diplomacy could resume, saying Iranian officials wanted to come to Washington for a meeting.
He rebuffed President Emmanuel Macron earlier this week when the French leader said Trump had told G7 leaders at a summit in Canada that the United States had made an offer to get a ceasefire and then kickstart broader discussions.
European officials have been coordinating with U.S. Secretary of State Marco Rubio, who was also at the G7 summit.
Britain, France and Germany, known as the E3 and party to a 2015 nuclear deal between world powers and Iran, held a ministerial call with Araqchi on Sunday. The three countries and the European Union are set to meet him in Geneva on Friday, Iranian Foreign Ministry spokesman Esmaeil Baghaei and an EU official said.
Earlier in the week, both Rubio and Araqchi told the Europeans in separate talks about a possible diplomatic initiative, three diplomats said.
A senior European diplomat said what emerged at the G7 was that Trump wanted the operations to end very quickly and that he wanted the Iranians to talk to him, while making clear that they had to accept his demands if they wanted the war to end.
Given the Israeli strikes and Trump's rhetoric, diplomats said Iran was in no position to hold public talks with the U.S., but that a meeting with the Europeans as a link to try and advance diplomacy was deemed more realistic for Tehran.
*EU Increasingly Resigned To 10pc Baseline Tariff In US Trade Talks, European Sources Say*
European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any trade deal between the United States and the European Union, five sources familiar with the negotiations said.
President Donald Trump has announced wide-ranging tariffs on trade partners and wants to reduce the U.S. goods trade deficit with the EU. U.S. Commerce Secretary Howard Lutnick has ruled out going below a 10% baseline rate for the so-called reciprocal tariffs that cover most goods the EU exports to the U.S.
EU neg are still pressing for the rate to be lower than 10%, said the European sources, who spoke on condition of anonymity because of the sensitivity of the talks.
But one of the sources, an EU official, said negotiating the level down had become harder since the U.S. started drawing revenues from its global tariffs.
"10% is a sticky issue. We are pressing them but now they are getting revenues," said the official.
A second European source said there had been no acceptance by the EU of 10% as the baseline rate at talks, but acknowledged that it would be difficult to change or abolish that baseline.
A spokesperson for the European Commission, the EU's executive body which negotiates trade deals for the 27-nation bloc, did not respond to a Reuters request for comment. The U.S. government also did not immediately comment.
U.S. officials have long worked on the assumption that America will end up with higher tariffs with its trading partners and do not expect to move away from the 10% tariff rate in talks with the EU.
U.S. Treasury Secretary Scott Bessent told the "Pod Force One" podcast in an interview broadcast Wednesday that Trump’s decision to double tariffs had spurred greater willingness on the part of European leaders to negotiate.
The EU has said publicly it will not settle for a double-digit baseline rate - as did Britain, which agreed a limited trade deal in May that retains 10% tariffs on British exports while cutting higher rates for steel and cars.
Trump has hit Europe with a 50% tariff on steel and aluminium and a 25% levy on cars, and the EU is trying to secure a deal before July 9, when reciprocal tariffs on most other goods could rise from 10% to up to 50%.
With an annual trade surplus of $236 billion with the U.S. in 2024, the EU has more to lose from tariffs than non-EU member Britain, which runs a trade deficit with the U.S.
Trump, who has said he wants to use tariff revenues to help finance his sweeping tax-cut and spending bill, said on Tuesday the EU was not offering a fair deal.
Washington has sought to fold non-tariff barriers, such as digital services taxes and corporate sustainability reporting rules, as well as LNG sales and food standards into the talks.
The U.S. posted a $258-billion budget surplus for April, up 23% from a year earlier, and the Treasury Department said net customs duties in April more than doubled versus the same period last year.
*TARIFF IMPACT*
The sweeping tariffs imposed by Trump since early April and the subsequent pauses on some of them have generated upheaval for companies worldwide, causing some to withdraw or refrain from giving financial guidance.
One European car executive said premium carmakers could stomach a 10% tariff but that it would be much tougher for a mass-market producer.
The tariffs targeting steel and aluminium, and cars and car parts, were applied on grounds of national security, with investigations into pharmaceuticals, semiconductors, timber and trucks possibly leading to further increased duties. EU officials say they are not willing to accept these.
Trump said on Tuesday that pharma tariffs were "coming very soon".
A pharma industry source said the European Commission was resisting sector-specific tariffs. The Commission has told the pharma industry that while it does not want the 10% baseline reciprocal tariffs, accepting a 10% base tariff may provide leverage in those negotiations, the source said.
A European beverage industry source said the wine and spirits sector would rather have a deal at 10% than protracted negotiations.
Not securing a deal would have a "huge negative impact... on our market," said Rob van Gils, CEO of Austrian company Hammerer Aluminium Industries. "It can be 0 it can be 10%. If it’s both ways that’s all manageable. It will not kill business."
One EU official said a 10% baseline rate would "not massively erode competitive positions, especially if others receive the same treatment."
*Air India Says One Engine On Crashed Plane Was New*
One of the engines of the Air India plane that crashed last week was new, while the other was not due for servicing until December, the airline's chairman has said.
In an interview with an Indian news channel, N Chandrasekaran said that both engines of the aircraft had "clean" histories.
"The right engine was a new engine put in March 2025. The left engine was last serviced in 2023 and due for its next maintenance check in December 2025," he told Times Now channel.
At least 270 people, most of them passengers, were killed last Thursday when AI171, a London-bound Boeing 787-8 Dreamliner, crashed less than a minute after taking off from Ahmedabad airport in western India.
Investigators are now sifting through debris and decoding recorded flight data and cockpit audio - from the aircraft's black boxes which have been found - to reconstruct the flight's final moments and determine the cause of the incident.
"There are a lot of speculations and a lot of theories. But the fact that I know so far is this particular aircraft, this specific tail, AI171, has a clean history," Mr Chandrasekaran said, cautioning people against jumping to conclusions.
"I am told by all the experts that the black box and recorders will definitely tell the story. So, we just have to wait for that," he added.
Kishore Chinta, a former investigator with India's Aircraft Accident Investigation Bureau, told the BBC that the condition of an aircraft engine is not necessarily linked to its age - particularly in the case of the Genx-1B engines used on the Boeing 787-8.
"The age of the engine has no bearing on the health of the engine, especially for the Genx-1B engines," Mr Chinta said. In other words just because an engine is new, does not necessarily mean it is healthy, or vice versa.
Unlike older models, the Genx-1B engines, which are made by GE Aerospace, don't follow a fixed overhaul or maintenance schedule. Instead, they are equipped with a system called the Full Authority Digital Engine Control or FADEC that continuously monitors engine health and performance. The decision to service or replace the engine is based on this data and physical inspections.
However, Mr Chinta pointed out that certain components of the engine, known as Life Limited Parts (LLPs), still have a fixed lifespan typically between 15,000 and 20,000 cycles.
"Every start and switch-off of the engine counts as one cycle," he explained. *BBC*
*Real Madrid Star Mbappe Hospitalised At FIFA Club World Cup*
Real Madrid forward Kylian Mbappe has been hospitalised with an acute case of gastroenteritis, the Spanish club says.
World Cup winner Mbappe missed Madrid’s opening game at the FIFA Club World Cup against Saudi Arabian team Al Hilal in Miami on Wednesday because of a fever.
Coach Xabi Alonso said he hoped the France international would be available for the team’s next game against Pachuca on Sunday.
Mbappe’s hospitalisation, however, casts doubt over what part he might be able to play in the monthlong tournament in the United States.
"Our player Kylian Mbappe is suffering from an acute case of gastroenteritis and has been admitted to hospital in order to undergo a series of tests and follow the appropriate course of treatment," Madrid said in a statement on Thursday.
Gastroenteritis is also known as the stomach flu, and symptoms can include vomiting and diarrhoea.
Real drew the match with Al Hilal 1-1 and missed the chance to seal all three points when Federico Valverde missed a late penalty.
Mbappe had trained with the Madrid squad in Palm Beach Gardens, Florida, on Sunday but was absent from the final session on Tuesday before the match.
The forward’s last match was France’s international against Germany in the third-place playoff at the UEFA Nations League.
France were eliminated by Spain in a 5-4 thriller in the semifinals, where Mbappe netted his side’s opening goal. *al Jazeera*
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😂
🙅♀
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