US and Saudi Arabia sign $142bn defense sales agreement
The US and Saudi Arabia have signed an almost $142bn defense sales agreement that provides Riyadh with state of the art equipment and services from US firms, the White House said.
The defense deal is part of a $600bn Saudi investment commitment for the US, the White House said in a factsheet.
The agreement also includes exports of GE gas turbines and energy solutions totaling $14.2bn, and Boeing 737-8 passenger aircraft totaling $4.8bn.
Key events
Donald Trump to speak at Saudi-US investment forum in Riyadh
Donald Trump is due to speak at Saudi-US investment forum, which is being attended by some of America’s top bankers, tech executives, Saudi officials and business leaders, in Riyadh shortly. I’ll bring you all the key lines from that when it eventually starts.
Trump administration terminates another $450m in grants to Harvard
Donald Trump’s administration said on Tuesday that eight federal agencies will terminate another $450m in grants to Harvard University, on top of $2.2bn in federal funding that it canceled last week.
The main reason for the crackdown on Harvard is the school’s rejection of a long list of demands from the Trump administration’s antisemitism taskforce, prompted by campus protests against Israel’s brutal military campaign in Gaza over the last 18 months.
Trump and MBS sign strategic economic agreement in Riyadh covering energy, mining and defense
Donald Trump and Saudi crown prince Mohammed bin Salman have signed a strategic economic partnership agreement between the two countries in a ceremony at the Royal Palace in Riyadh.
Reuters reports that the partnership includes agreements for energy, mining, and defense.
During the exchange of a memorandum of understanding between the two countries, it was announced that the energy aspect relates to “cooperation in the field of energy”, and the mining aspect relates to “cooperation in the field of mining and mineral resources”.
The defense aspect relates to “the modernization and development of the capabilities of the Saudi armed forces through future defense capabilities”.
A letter of intent was also announced “to complete work and enhance joint cooperation on ammunition, training, support services, maintenance, system upgrades, spare parts and education for land and air systems of the National Guard”. And one regarding “the development of the health capabilities of the Saudi armed forces”. There was also reference to working with the FBI and the Ministry of the Interior.
It also included an agreement between the Saudi space agency and Nasa related to a space weathering project, mutual assistance between the customs authorities of the two countries, amending the air transport agreement, cooperation on health research and infectious diseases, and cooperation on conservation.
More signings of agreements and memoranda of understanding will continue later at the US-Saudi Investment Forum, it was said.
Trump faces backlash of Maga faithful over plan to accept plane gift from Qatar
Ed Pilkington
Donald Trump is all too comfortable brushing aside criticism from Democrats and the “fake news media”, but when the flak over his decision to accept a $400m luxury jet from the Qatari government comes from his most devoted supporters it might behoove the US president to listen.
Stars of Trump’s Make America great again (Maga) firmament are speaking out in unambiguous terms against the plan for him to be donated a jet described as a “palace in the sky” and convert it into Air Force One. They are damning the idea in Trump’s own language – telling him this is not “draining the swamp” as he promised to do during his first presidency, and nor does it conform to the theme of his second Oval Office term: “America First.”
Ben Shapiro, the prominent rightwing commentator, led the charge on his daily podcast. He said: “President Trump promised to drain the swamp – this is not, in fact, draining the swamp.”
Linking Qatar to the militant Palestinian group Hamas and Al Jazeera, the media network that is widely detested on the right and is partly funded by the Qatari government, he added:
Taking sacks of goodies from people who support Hamas, Muslim Brotherhood, Al Jazeera, all the rest, that’s not America First … If you want President Trump to succeed this kind of skeezy stuff would be stopped.
Yesterday we brought you comments from Laura Loomer, the far-right Maga activist, who warned that the proposed gift would put “such a stain on the administration”.
The conservative New York Post, meanwhile, published an editorial headlined: “Qatar’s ‘Palace in the Sky’ jet is NOT a ‘free gift’ – and Trump shouldn’t accept it as one.”
Republicans in the US Senate have also begun to pipe up, speaking ominously about interrogating the gift under the emoluments clause of the US constitution. That clause prevents federal officials, including the president, from accepting high-value gifts and payments from foreign governments without the say-so of Congress.
Rand Paul, the Republican senator from Kentucky, told Fox News that in his opinion “it’s not worth the appearance of impropriety”.
Whether it’s improper or not – I don’t think it’s worth it … It’s not like a ride on the plane. We are talking about the entire $400m plane.
US monthly inflation rate slows amid Trump tariffs
Lauren Aratani
The pace of inflation slowed in April, the month that Donald Trump announced his sweeping “liberation day” tariffs on the US’s largest trading partners.
The annual inflation rate was 2.3% in April, down from an annual rate of 2.4% March, according to a new inflation report from the Bureau of Labor Statistics (BLS).
Core inflation, which excludes volatile energy and food prices, hit an annual rate of 2.3% in April, compared to an annual 2.4% increase in March.
While the inflation report covers April, after Trump’s announcement, it comes as businesses are still trying to figure out the impact of the tariffs. Officials at the Federal Reserve said they expect tariffs to have an impact on prices, even if only temporary.
“Certainly the risk to higher inflation [and] higher unemployment have increased,” the Fed chair, Jerome Powell, said at a press conference last week, adding that tariffs could delay inflation from reaching the Fed’s target rate of 2% by at least a year.
We would, at least for the next, say, year, not be making progress toward those goals if that’s the way tariffs shake out.
Economists also expect price increases to get worse this year. Many companies have not had to increase prices yet, as many of the goods being sold now were imported before the new tariffs were implemented.
As Trump touched down in Riyadh this morning for the first overseas tour of his second presidency, let’s recap because “already the pomp and circumstance are dialed up to the max”, writes Politico.
Having been escorted through the skies by six Saudi F-15s, Trump has now begun his formal state visit with a grand ceremony in the opulent surroundings of the Saudi Royal Court, with its 30-foot ceilings and polished marble floors.
Trump was greeted off Air Force One by crown prince Mohammed bin Salman, and the two men will spend much of the day together — just as they did on Trump’s first overseas visit in 2017, when the president again eschewed America’s closest neighbors and oldest allies in favor of the Middle Eastern monarchs.
Trump loves this stuff — really loves it. White House aides say these grand regal ceremonies are a key part of the appeal of Middle Eastern trips, along with the chance to unveil some big-ticket investment deals. Trump loves the red carpet welcomes. He loves the state dinner toasts. He loves being with royalty. For him, it’s part of the point.
Don’t forget, this is a president who, rather than rejecting accusations that he wants to rule America as an all-powerful king, chose to lean right into them instead. And it’s not just about ignoring constitutional norms, but the trappings of regal power. Trump has installed gilded edging throughout his Oval Office. His next confirmed state visit is to Britain in September, following a handwritten invite from King Charles III — with all the royal baubles that implies. Trump will hope to fly there in his “palace in the sky.”
The day so far
Here is a summary of events so far and what’s coming up:
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Donald Trump is in Riyadh, Saudi Arabia, as he begins his four-day tour of the Middle East focusing on economic deals.
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He was greeted at the airport by the de facto ruler Saudi crown prince Mohammed bin Salman.
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Trump is expected to focus on economic deals. Trump has said he will ask for $1tn investment in the US.
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During the Riyadh stop, Trump is expected to offer Saudi Arabia an arms package worth well over $100bn, sources told Reuters.
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Tesla CEO and Trump adviser Elon Musk is also in Riyadh, where he is expected to speak at the Saudi-US Investment Forum.
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Secretary of state and national security adviser Marco Rubio and defence secretary Pete Hegseth are also on the trip.
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Trump is expected to address the Saudi-US Investment Forum later today – we’ll bring you all the key lines from that.
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He will later attend a state banquet in Riyadh.
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The tour will also see Trump visit Qatar and the United Arab Emirates.
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Trump has said he will not be travelling to Israel but suggested he may travel to Turkey on Thursday for potential face-to-face talks between Russian president Vladimir Putin and Ukrainian president Volodymyr Zelenskyy.
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Trump has pushed back on criticism for accepting the gift of a $400m (£303m) plane from Qatar’s royal family to replace Air Force One. He claimed it would be “stupid” not to accept the gift. He has said it is “a very public and transparent transaction”.
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Donald Trump’s Middle East envoy Steve Witkoff said the president has spoken with the released US-Israeli hostage Edan Alexander, who was released yesterday after 19 months in captivity in Gaza.
Trump envoys to travel to Turkey for Russia-Ukraine talks – report
Reuters is reporting that Trump’s envoys Steve Witkoff and Keith Kellogg will travel to Istanbul to join potential Russia-Ukraine talks taking place on Thursday, citing three sources familiar with the plan. I’ll bring more detail on that as soon as we get it.
Julia Kollewe
Taking a brief step away from Trump’s Middle East visit, here is some other US news.
The US has announced it is cutting the tariff on small parcels sent from China and Hong Kong to the US from 120% to 54%, hours after Washington and Beijing agreed a 90-day pause in their trade war.
Donald Trump signed an executive order more than halving the levy, which was brought in at the start of this month to close the “de minimis” loophole allowing low-value goods to be sent to the US without paying any import fees.
The exemption – taken from the Latin phrase for “of little importance” – had meant items sent from abroad via post valued at up to $800 were able to enter the US duty-free and with minimal inspections. It fuelled the rise of fast fashion companies sending goods from China such as Shein and Temu.
Read the full report here:
Trump has spoken to released US-Israeli hostage, US Middle East envoy says
In other US news, Donald Trump’s Middle East envoy Steve Witkoff said the president has spoken to the released US-Israeli hostage Edan Alexander.
In a post on X, Witkoff wrote:
I was honored to meet Edan Alexander today and welcome him home. After months in captivity, the world is inspired by his courage and resilience. His return gives hope to so many. We also had the opportunity to speak with @POTUS, whose leadership made this possible. We remain committed to bringing every last hostage home.
Sam Altman and Elon Musk accompany Trump in Saudi Arabia
We have more images coming to us from the Royal Court’s ceremonial blue room, where business leaders, including OpenAI CEO Sam Altman, were in attendance.
Here is a quick look at Trump’s schedule today.
He is expected to have lunch with CEOs. There will then be bilateral meetings and agreement signings, the BBC reports.
Trump is also scheduled to give an address at the Saudi-US Investment Forum.
Later, he will attend a state dinner in Riyadh.
Here are some images coming to us over the wires.
