Diplomacy
Britain, US near trade deal to ease Trump tariffs
According to officials in London and Washington, Britain and the US are on the verge of signing a trade agreement that would mitigate the impact of Donald Trump’s “day of liberation” tariffs.
The agreement, according to the Financial Times, would grant British car and steel exports lower tariff quotas. The deal, expected to be signed this week, would exempt some British exports from a portion of the additional 25% tariffs that Trump imposed on steel and automobile imports in February and March.
UK trade negotiators traveled to Washington this week for the final stages of talks. A senior British official stated that negotiations were proceeding “rapidly” but noted that disagreements over pharmaceuticals persisted.
In addition to offering quotas for its own exports, Britain hopes to secure reductions in the sector-specific 25% tariffs that Trump applied to cars and steel.
London will compromise but doesn’t want to undermine rapprochement with the EU
Among London’s “offers” are concessions to Washington on the digital services tax applied to international technology companies, reductions in tariffs on US car exports, and reductions in tariffs on American agricultural products.
However, the British government has stated it will not accept US food production standards, such as chlorinated chicken and hormone-treated beef. These standards could make it impossible to sign a veterinary agreement, which is a crucial part of Britain’s upcoming “reset” process with the EU.
The anticipated Britain-US agreement is one of 17 deals that the Trump administration aims to sign with major trading partners as part of a process to roll back comprehensive tariffs applied to countries worldwide on April 2.
To follow the Britain-India agreement
US Treasury Secretary Scott Bessent stated in Congress on Tuesday that some of these agreements could be announced “perhaps later this week,” noting that several countries had made “good offers” but did not elaborate.
White House officials are also holding talks with Canada, Mexico, Japan, Vietnam, and India, as well as the EU. Some foreign officials have privately expressed frustration with the administration’s lack of clarity regarding how much tariff reduction it will offer trading partners.
If an agreement is reached, the US-Britain deal would follow the full-scope free trade agreement between Britain and India, which was announced on Tuesday.
Pressure is mounting on UK Prime Minister Keir Starmer to sign a deal with the US after warnings from the British car and steel industries that Trump’s tariffs would have “devastating” effects on their sectors.
British automotive sector dependent on exports to the US
Mike Hawes, CEO of the trade organization Society of Motor Manufacturers and Traders (SMMT), warned that the new US tariffs were having a “serious, significant, and immediate” impact on the sector’s upper segment.
Luxury brands such as Bentley, Jaguar Land Rover, and Aston Martin are heavily reliant on exports to the US. According to the SMMT, the US is the UK’s second-largest car export market after the EU, exporting over 100,000 vehicles last year, valued at over £7.5 billion.
A senior executive in the automotive sector welcomed the possibility of reduced tariffs for Britain’s vehicle exports but stated that the primary goal should be the removal of the 25% tariff.
The executive said, “Applying quotas is complicated and hinders trade. The most important thing is the removal of the 25% tariff, because tariffs above 10% are not sustainable.”
Under an agreement with then-US President Joe Biden, London was permitted to export 500,000 tons of steel to the US annually tariff-free. This agreement was terminated this year when Trump imposed a 25% tariff on all steel and aluminum imports into the US.
The trade association UK Steel warned that Trump’s tariffs would halt the sector’s exports, which were already under pressure due to a global metal surplus. In 2023, the US accounted for approximately 165,000 tons of British steel exports. This was valued at around £400 million, representing approximately 8% of the total value.
Since 2017, when Trump first imposed tariffs, the UK’s exports to the US have almost halved.
Two people familiar with the negotiations said the agreement had been delayed due to disagreements related to the pharmaceutical sector. Last month, the Trump administration initiated national security investigations into pharmaceutical and microchip products, which could pave the way for tariffs on pharmaceuticals, an area where the UK exported £6.6 billion worth of goods to the US in 2024.
British officials described the quotas offered by the US as “generous,” stating that Britain was trying to avoid the worst effects of future tariffs. A second British official was more cautious, describing the expected agreement as “limited.”
Diplomacy
South Korea pulls part of embassy staff from Ukraine amid POW dispute
The South Korean government has decided to withdraw part of its embassy staff from Ukraine.
According to the Yonhap news agency, Foreign Ministry spokesman Park Doo-sun cited the Kyiv administration’s failure to take “positive steps” in the dispute that began with the leak of information concerning the handover of North Korean prisoners of war as the justification for the move.
The spokesman also listed the ongoing threat of air strikes, which complicates the safety of diplomats, among the reasons.
Following the withdrawal of part of the personnel, essential diplomatic contacts will continue under the leadership of the charge d’affaires ad interim to Ukraine. All consular staff tasked with protecting South Korean citizens will remain in Ukraine.
Prior to this move, the Seoul administration decided on 8 October to withdraw its ambassador. The Foreign Ministry stated at the time that it was ready to continue consultations with Kyiv to resolve the emerging issues constructively.
Tensions between the two countries began with a speech delivered by Ukrainian President Volodymyr Zelenskyy at the United Nations General Assembly in September.
Zelenskyy announced that two captured soldiers from the North Korean army had been handed over to South Korea.
South Korean President Lee Jae-myung, meanwhile, accused Kyiv of breaching a confidentiality agreement.
Lee said the disclosure of this information endangered the prisoners’ families and stability on the Korean Peninsula.
Seoul expects a public apology
Dmytro Lytvyn, an adviser to the Ukrainian president, denied the existence of a confidentiality agreement.
The South Korean Foreign Ministry summoned Ukrainian Charge d’Affaires Andriy Veshkin on 28 September and issued a note of protest against Lytvyn’s remarks.
President Lee Jae-myung warned in a statement on 2 October that they would take additional measures against Kyiv if Ukrainian authorities did not acknowledge the agreement and make a public apology. Lee stated that Ukraine itself had initially requested that the transfer of the prisoners be kept confidential.
Ukrainian Foreign Ministry spokesman Heorhii Tykhyi said the dispute stemmed from differing interpretations of the confidentiality regime.
Tykhyi noted that Seoul, based on its constitution which recognises the entire Korean Peninsula as its own territory, requested that the prisoners be handed over “like its own citizens”.
Describing the handover as a “gesture of goodwill”, Tykhyi stated that they were conducting closed-door negotiations to resolve differences of opinion.
Ambassador Park Ki-chang returned to Seoul on 10 October. According to a report by The Korea Times newspaper citing the ministry, recalling the ambassador served as a diplomatic protest against the leak of information regarding the prisoners.
The newspaper wrote that South Korea had last taken a similar step in 2008 by withdrawing its ambassador to Japan.
Moscow warned foreign diplomats
On 3 October, the Russian Foreign Ministry reiterated its warning to foreign nationals, including diplomatic mission staff, against remaining in Ukraine.
The ministry recalled its advice to leave Kyiv, citing ongoing strikes against military targets.
The ministry noted that those who failed to heed the warnings would bear responsibility for the potential consequences.
Kremlin spokesman Dmitry Peskov said in a statement on 24 September that they had no information regarding Kyiv handing over two North Korean prisoners of war to Seoul.
Peskov, noting that prisoner matters fall under the authority of the Defence Ministry and intelligence services, said, “Contacts through the special services are continuing.”
Diplomacy
Ex-BND head Hanning tied to former Mossad chief amid spy inquiry
August Hanning, who led Germany’s Federal Intelligence Service (BND) between 1998 and 2005, was arrested on 6 October on allegations that he obtained roughly 2,000 classified agency documents and used them during contacts with intelligence officers from a foreign state.
Accused of high treason and espionage on behalf of a foreign intelligence agency, the former spy chief is alleged to have procured the documents from former BND employee Manfred D.
Prosecutors stated that the leaked records included internal briefing notes presented to senior German officials, though the Berlin government has not yet publicly disclosed which country received the classified data.
According to an exclusive report by Jake Green for The Cradle, seized email exchanges revealed extensive ties between the arrested Hanning and former Mossad director Danny Yatom.
The correspondence shows that the two former intelligence directors built an ongoing network of contacts following their public service, combining commercial ventures, efforts to secure political influence, and intelligence links.
This dynamic has triggered debate that using personal connections and official access for private gain has left Germany’s intelligence apparatus vulnerable.
Intelligence notes for 10,000 euros and campaign proposals
According to the reviewed emails, Hanning told Yatom in a 2018 message that he could prepare an “overall assessment based on information obtained from senior German officials and intelligence agencies” concerning an unidentified candidate.
The former BND head committed to completing the report by 13 July in exchange for 10,000 euros.
Contacts between the two men subsequently expanded to cover domestic political processes in Germany. Ahead of the September 2021 federal election, Yatom asked Hanning to approach leading candidates.
Describing CIY Global as a “political campaign company”, the former Mossad chief noted that he aimed to introduce its capabilities to German politicians, and he mentioned his intention in the same exchange to transfer documents concerning a cybersecurity firm.
Cybersecurity partnership and surveillance operations across Europe
The partnership between Yatom and Hanning reached beyond political lobbying initiatives into the cybersecurity sector.
Hanning reportedly served as a consultant for World Health Energy Holdings, a cybersecurity company linked to Yatom.
Firms of this type, established or managed by former intelligence personnel, provide commercial platforms on the international market for Israeli-origin surveillance, cyber intelligence, and political influence capabilities.
The operational presence of private Israeli-based surveillance technologies across Europe has recently entered judicial records through scandals in Poland, Spain, and Greece.
Polish prosecutors announced on 12 October that data collected under the previous government via Pegasus spyware against political opponents had been transferred out of the country, adding that manufacturer NSO Group maintained access to the technical infrastructure.
In Spain, the 2022 CatalanGate investigation established that at least 65 people, including politicians, lawyers, and civil society representatives, were targeted using Pegasus or Candiru software, with Citizen Lab researchers publishing strong evidence linking the operation to Spanish authorities.
In Greece, the surveillance operation targeting journalist Thanasis Koukakis and Member of the European Parliament Nikos Androulakis was determined to have used Predator software, linked to Intellexa, a company founded by former Israeli intelligence officer Tal Dilian.
In the German espionage investigation, the traffic between Hanning and Yatom involving paid reporting, contacts with electoral candidates, and commercial partnerships does not yet provide conclusive legal evidence regarding the final destination of the roughly 2,000 classified documents.
Nevertheless, the disclosed correspondence gives German investigators a concrete line of inquiry to assess whether classified state secrets reached commercial networks tied to Israeli intelligence.
Diplomacy
Trump dismisses US envoy to Greece Kimberly Guilfoyle
US President Donald Trump has dismissed Kimberly Guilfoyle, the US ambassador in Athens, following serious press reports concerning her conduct.
White House Press Secretary Katie Zacharia told reporters during her first briefing that Guilfoyle had been asked to resign.
“She was doing a good job, but we didn’t like what we read in the press,” Trump said. “She was not a member of my family. I think she dated my son a long time ago.”
In a social media post, Guilfoyle stated: “These claims are unfounded, and I will resolutely defend my name, reputation, and integrity.” She added that she was particularly proud of the embassy’s work.
According to Kathimerini, her removal came as no surprise in Washington. Days of successive disclosures and vigorous exploitation of the matter by Democrats had been inflicting political damage on the White House ahead of the sensitive midterm elections.
The US State Department was instructed not to comment, with crisis management transferred entirely to the White House.
Reports indicate that most of the president’s team swiftly favoured Guilfoyle’s dismissal, while Secretary of State Marco Rubio was reportedly uneasy with the demonstratively warm public welcome she had staged for him.
Democrats on the House Foreign Affairs Committee have called for an investigation.
“Her resignation does not absolve her of responsibility,” the lawmakers wrote, adding: “While American families struggled to make ends meet, she used her position as a Trump administration official to enrich herself.”
Chargé d’Affaires Josh Huck will assume ambassadorial duties until a successor is chosen.
Meanwhile, Guilfoyle’s departure is expected to cause delays in agreements between Greece and the US.
These include the so-called “Rubio package”, comprising approximately $4 billion in arms deals finalised only days before the secretary of state’s arrival.
Several procedural steps still remain before the contracts can be signed.
In Athens, opposition parties are demanding answers. Dimitris Mantzos of PASOK called for a detailed briefing on the agreements reached during Rubio’s visit.
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