Diplomacy
US and United Kingdom sign limited trade deal
The US and the United Kingdom have signed a significant trade agreement after years of negotiations.
Under the agreement, the 10% “reciprocal” tariff rate applied to British goods remains unchanged, while the United Kingdom will benefit from exemptions on steel and automobiles and increased market access for agricultural exports.
The agreement also leaves the door open for further negotiations in the future. US President Donald Trump told reporters in the Oval Office, “The final details will be written in the coming weeks.”
Speaking by phone at the White House press conference, UK Prime Minister Keir Starmer described the agreement as “historic,” stating, “This will increase trade between our countries. It will not only protect jobs but also create employment and open up market access.”
Although the agreement is far from a comprehensive free trade agreement, the United Kingdom became the first country to sign such a deal with Trump.
British automotive sector breathes a sigh of relief
The most significant change is the exemption from the general 25% additional tariff applied to steel, aluminum, and automobiles. Under the agreement, tariffs on British car exports will be reduced to 10%, with an annual quota of 100,000 units.
British prime ministerial sources say this figure is almost equal to the total amount the United Kingdom exported last year. If this quota is exceeded, vehicles will be subject to the 25% tariff.
On the other hand, this rate is four times the 2.5% tariff the UK benefited from before Trump’s second presidential term.
Nevertheless, the reduction in tariffs will provide much-needed relief to British car manufacturers, who exported £9 billion last year and are the United Kingdom’s largest goods exporter to the US.
Reciprocal steps in the steel and aerospace sectors
The agreement completely removes tariffs for the UK’s struggling steel industry, which is facing a crisis under the threat of blast furnace closures and job losses.
The US is currently the United Kingdom’s second most important steel export market after the EU: the American market accounts for 9% of the country’s steel exports by value and 7% by volume.
The US also promises exemptions for UK aerospace parts, while in return, the United Kingdom gains “preferential access” to aerospace components.
Speaking in the Oval Office, US Commerce Secretary Howard Lutnick said, “We have agreed to allow Rolls Royce engines and aircraft parts of that nature to be imported tariff-free.”
Initially, aerospace parts, including those previously exempted for security reasons, were included in the general 10% reciprocal tariff.
London did not compromise on digital tax
It came as a surprise to many that the United Kingdom did not compromise on the digital services tax despite US pressure to reduce the tax. The 2% tax targets the revenues of tech giants like Amazon, Meta, and Google and is estimated to generate £800 million this year. This tax had long drawn criticism from the US on the grounds that it discriminated against American companies.
But as POLITICO first reported on Thursday, the tax did not change as part of the agreement.
Instead, both countries decided to work on a digital trade agreement to eliminate bureaucracy for exporters and simplify customs procedures.
Christine Bliss, President of the Coalition of Services Industries, said in a statement, “The UK’s digital services tax needs to be discussed and addressed in more detail to ensure it is applied fairly to American service providers.”
The technology agreement also envisages greater cooperation in areas such as biotechnology, life sciences, quantum computing, nuclear fusion, and aerospace.
There was also no compromise on the United Kingdom’s online safety rules, which was a great relief for campaigners.
The London government had announced last month, under pressure from Washington, that online safety rules would be reviewed in trade talks with the US, drawing significant backlash.
The United Kingdom’s US Ambassador Peter Mandelson told POLITICO he was “very pleased with the outcome,” adding that his country had “achieved all its main demands and that the agreement will now open the door to a deeper and longer-term US-UK technology partnership.”
Reciprocal market openness and food standards in agriculture
In a move met with skepticism by the agricultural lobby in Great Britain, the countries signed a new reciprocal market access agreement on beef. Under the agreement, British farmers were granted a tariff-free quota of 13,000 metric tons and a reduced tariff rate of between 4% and 10%.
On the other hand, US farmers will also be able to export the same amount of beef to the UK tariff-free.
But more importantly, all imported meat must comply with United Kingdom food standards. This means British farmers can breathe a sigh of relief that hormone-treated beef will not be arriving at their doors anytime soon.
Food standards had been a contentious issue since the United Kingdom-US free trade agreement negotiations began under the first Trump administration in May 2020.
A boon for ethanol exports to the US
In a surprise move, the US was also granted a new tariff-free ethanol quota for the first 1.4 billion liters. Previously, US ethanol exported to the United Kingdom was subject to a tariff of between 10% and 50%, depending on its use.
Speaking at the White House press conference, Trump said the agreement would “significantly” increase market access for American beef, ethanol, and almost all products produced by large farmers.
According to White House documents, the agreement will create “$5 billion in new export opportunities for US farmers, ranchers, and producers.” More than $700 million of this figure will come from ethanol exports, and $250 million from other agricultural products such as beef.
Tom Bradshaw, President of the National Farmers Union, said, “Our biggest concern is that the heavy burden of tariff removal in other sectors of the economy is being placed on the shoulders of two agricultural sectors,” adding that British agriculture “cannot continue to bear such imbalances in future negotiations.”
Bradshaw also added that the inclusion of bioethanol in the agreement “raises concerns for British arable farmers,” and said they were examining what this means for the sustainability of domestic bioethanol production and its potential impact on their members.
The White House also announced that the countries have decided to work together to improve industrial and agricultural market access.
Preferential treatment for pharmaceuticals
The agreement will also allow Britain to negotiate a preferential outcome on pharmaceutical tariffs, even though the US has not yet imposed tariffs on pharmaceuticals.
Pharmaceuticals are the United Kingdom’s second largest export item to the US. The UK exported £6.6 billion worth of pharmaceuticals last year, and this figure accounted for 11.1% of the country’s total exports to the US.
On April 1, Trump launched an investigation into the impact of pharmaceutical imports on national security and announced on Tuesday that he would impose tariffs on this sector “in the next two weeks.”
On the other hand, it is not yet clear whether the United Kingdom will receive preferential treatment regarding the tariffs Trump will impose on the film industry.
Over the weekend, the US President threatened to impose a 100% tariff on foreign films, saying that incentives offered by other countries to attract filmmakers to their countries posed a threat to US national security.
Caroline Dinenage, Chair of the Culture Committee, argued that tariffs on films were “contrary to the interests of American companies” due to “investments in UK facilities and talent based on intellectual property rights held by the US.”
Trade Secretary Jonathan Reynolds said, “At this stage, it is not clear exactly what kind of tariffs the US is proposing to apply in relation to films.”
Diplomacy
Anthropic uncovers Claude use by Iranian, Houthi, and Russian units
Artificial intelligence company Anthropic has disclosed attempted “abuses” of its Claude AI model ranging from conventional weapons to biological research by state-linked entities, foreign intelligence services, and cybercrime networks, publishing the findings in a detailed threat intelligence report.
A significant portion of the report comprised the development of guided missile software by the Houthis in northern Yemen and the conversion of the model into a military reconnaissance tool by Iran-linked actors seeking to target US naval assets in the Middle East.
Covering the period between December 2025 and August 2026, the report shared details of activities detected across seven primary areas: cyberattacks, influence operations, mass surveillance, conventional weapons development, biological risks, and unauthorised model distillation.
The company announced that it had terminated all accounts violating its rules and shared the resulting data with relevant international counterparts.
According to findings by Anthropic’s Threat Intelligence unit, a weapons cell based in northern Yemen, where the Houthis operate, substituted human software engineers with the Claude Code system across three distinct missile development programmes.
These efforts comprised a tactical rocket equipped with a terminal guidance system powered by a commercial smartphone processor, a multi-stage ballistic missile with a target range exceeding 2,000 kilometres, and missile designs carrying a hypersonic glide vehicle.
The cell utilised the artificial intelligence to adapt open-source autopilot software to the smartphone processor, optimize flight control algorithms, and compile firmware.
Structuring their Claude accounts like a virtual engineering team, the Houthis assigned one account to write code, another to conduct research, and a third to review and audit the written code.
The report noted that the group conducted an actual test launch with a guided rocket in the Yemeni theatre.
Immediately following the failure of the live-fire test, the actors were documented returning to the Claude platform within hours to upload telemetry data and diagnose the cause of the malfunction.
The cell was observed successfully compiling offline simulation tools capable of operating independently even if access to Claude were severed.
We're publishing our most detailed threat intelligence report to date.
It covers how people tried to misuse Claude—for cyberattacks, influence operations, surveillance, biology, and building weapons—and how we found and stopped them.
We disrupted every operation in the report,…
— Anthropic (@AnthropicAI) September 10, 2026
Iran tracked US warships and personnel
Another military case detailed in the report involved attempts by Iran-linked cyber actors to target US naval forces in the Middle East.
These actors were found to have scraped open-source military data to draft operational targeting manuals directed against American warships and personnel.
Iran extracted name rosters of American military personnel from the captions of publicly accessible military photographs, monitored vessel and aircraft transponder data, authored code to scan commercial satellite imagery, and mapped vulnerabilities in maritime satellite communication terminals.
Other networks linked to the Tehran government were determined to have developed domestic and regional surveillance systems. A Qom-based unit produced a malicious web browser extension disguised as a prayer-time application to harvest credentials from social network users, funneling the data into a central case management system designated “Arman”.
Additionally, official Iranian institutions reportedly cloned authors’ voices using AI and operated multilingual disinformation networks to lay the groundwork for the supreme leadership succession.
Russia also used it for an autonomous kamikaze drone swarm
The report stated that an independent Russia-based software team developed fully autonomous kamikaze uncrewed aerial vehicle swarm software dubbed “DronDoc” or “Serafim”.
Affiliated with a university connected to the Russian Academy of Sciences, the team was said to have trained the artificial intelligence to distinguish between friendly and hostile elements using footage retrieved from the Ukrainian battlefield.
The developed system was designed with the capability to select targets, execute live human classification, and issue detonation commands without requiring human intervention, with simulations run directly against coordinates in the Donetsk region.
Meanwhile, the Russian-origin “Midnight Blizzard” group targeted the Ukrainian drone supply chain and staged attacks aimed at foreign officials and drone engineers by compromising hotel Wi-Fi networks.
A procurement manager stationed at a design bureau in Moscow was also discovered drafting plans via Claude to circumvent European sanctions. The individual was recorded assembling fraudulent tender and logistics correspondence to transport German-made magnetometers, space-grade photovoltaic sheets, and military aviation oxygen systems into Russia through intermediary firms based in China and Hong Kong.
Biological threats and pathogen engineering
The report disclosed five concrete cases regarding the deployment of artificial intelligence in hazardous biological research. Virologists attached to a military research institute were documented using AI for gain-of-function research aimed at enhancing the transmissibility and immune-evasion capabilities of the mosquito-borne Chikungunya virus.
Similarly, experimental designs were prepared to adapt the H5 avian influenza variant, which carries a 50% mortality rate in humans, to mammals and confer airborne transmission capabilities, while immune-evasion mechanisms of pathogens from the smallpox virus family were modelled.
The identities of paralytic neurotoxins subject to export control lists and haemorrhagic fever virus proteins featured on the World Health Organization’s priority epidemic list were deliberately masked and submitted to the AI for analysis.
In addition, a consultant working on behalf of the Malian State Intelligence Service designed a mass surveillance platform designated “Lakana 360” with the assistance of Claude.
The system was designed to monitor approximately 25 million SIM cards registered across three mobile operators in the country without requiring court orders, intercept audio recordings, and cross-reference records with biometric databases.
Separately, leading Chinese artificial intelligence firms including Alibaba, Moonshot, DeepSeek, Zhipu, and Xiaomi were alleged to have initiated hundreds of millions of unauthorised sessions to extract the logical reasoning chains of Claude models. Moonshot and DeepSeek platforms reportedly routed their own users’ queries secretly through Claude, in the process exposing Chinese police surveillance feeds from hundreds of cameras covering military facilities in Chengdu, internal credentials of Chinese state-owned enterprises, and live database access codes connected to the Russian Defence Ministry to third parties.
Türkiye detail in the report
The report also detailed cases involving the abuse of the Claude AI model, incorporating findings concerning an Istanbul-based technology firm.
In case GTG-84005 of the intelligence report, an operation aimed at commercial election manipulation targeting voters in Malaysia was intercepted.
According to the findings, the operation operated under the guise of a startup providing cyber intelligence and counter-disinformation tools. Anthropic determined that Istanbul-based BBS Bilisim Teknolojileri was behind the infrastructure.
According to documents, the company marketed the architecture as a paid influence operation service styled as a “military-grade, AI-powered, real-time political operations ecosystem”.
Managing roughly 1,000 synthetic X accounts, the system processed demographic and electoral data across 222 parliamentary constituencies in Malaysia, calibrating targeting around sensitive social fault lines including ethnicity, religion, and the monarchy.
The network also circulated content from Russian and Chinese state media masquerading as independent Malaysian news via an artificial media outlet designated “Malaysia Pulse”, while manufacturing fraudulent intelligence dossiers targeting an opposition politician and civil society organisations.
Anthropic reported that the network received a request to generate 1 million artificial impressions in support of the Malaysian Prime Minister and sought to secure a contract with the country’s national communications regulatory authority.
While no evidence emerged that the undertaking succeeded, the associated user accounts were closed and operational digital indicators were shared.
Diplomacy
EU pursues closer ties with Israel on space and air defence
The EU is turning to Israel to bolster its new initiatives in high-tech air defence and space capabilities.
Shimrit Maman, head of the Israel Space Agency, travelled to Brussels this week and met on Tuesday with European Commissioner for Startups, Research and Innovation Ekaterina Zaharieva to discuss key sectors, including artificial intelligence and robotics.
The visit took place ahead of European Commission President Ursula von der Leyen’s first major speech on space, scheduled for Thursday at a summit in Paris.
In the speech, Von der Leyen is expected to warn against mounting hostilities and emphasise the necessity of strengthening Europe’s presence in space.
“It’s very hard to do everything by yourself,” Maman told Politico, adding that the militarization of space is “already happening, it’s just we are not aware of the extent,” and noting that allies are showing growing interest in “dual-use” technologies intended for both civilian and defence purposes:
“One thing we’re working on is early-warning systems. For example, during the last wave [of missile attacks] with Iran, we saw this very clearly. How we were getting the alerts to all the civilians in Israel, and that made the casualties so low. This is part of the system. We’re working on a very holistic view, where you can alert in advance, the system alerts the citizens.”
Following several years of effective disengagement caused by political tensions surrounding the invasion of Gaza, the EU has recently begun forging closer military and technological ties with Israel through a series of agreements.
Competition from Washington and strategic rivalry with Moscow and Beijing have nevertheless underlined the requirement for allies possessing sophisticated industrial capacity.
In 2024, European Commission President Ursula von der Leyen backed calls by Polish Prime Minister Donald Tusk and Greek Prime Minister Kyriakos Mitsotakis to create an EU-funded air defence shield.
Three senior officials involved in the discussions said, however, that the plans stalled after officials in the Commission and several national capitals concluded that the project would require reliance on Israeli air defence technology, which was considered too sensitive one year into the Gaza conflict.
Yet Israel’s Rafael, which is expanding its European operations significantly, has now confirmed that it will open a factory to manufacture the Iron Dome air defence system at a former Volkswagen plant in Germany.
One week ago, Greece signed a 3 billion euro agreement with the Israel Ministry of Defense.
The deal provides for the establishment of a new multi-layered air defence network designed to shoot down drones, hostile jets, and rockets.
“We see everything integrating into this multi-layer defence approach,” Maman said, highlighting satellite imagery and artificial intelligence modelling as primary focal points for joint development efforts:
“I’m not only seeing defence as ballistic missiles from Iran… think about a fire, a flash flood or even a long drought… we have a proven track record, and we’re getting really good results.”
Diplomacy
UK reassures US that new Israeli settlement sanctions are symbolic
The UK has reportedly engaged in behind-the-scenes talks to avoid a backlash from the US over anti-Israel sanctions scheduled for announcement today.
According to a report by Bloomberg, Andy Burnham’s government is expected to ban trade with Israeli settlements in the West Bank today.
Burnham is seeking to pursue a firmer stance on an issue of high importance to the governing Labour Party, though one that risks angering US President Donald Trump.
Foreign Secretary Ed Miliband will unveil a new sanctions regime targeting Israel but limited to Jewish settlements in the West Bank, according to sources familiar with the matter.
Burnham and Trump spoke by telephone on Monday, the Prime Minister’s Office said. A statement noted that the two leaders discussed a two-state solution for Israel and the Palestinian territories.
The discussion suggests that Burnham used the call to notify Trump that sanctions against Israel were imminent.
The proposals under review included a new sanctions regime with measures to block the exchange of goods and services with Israeli settlements.
Miliband also evaluated expanding existing human rights sanctions to encompass the blocking of aid, which has drawn criticism for exacerbating the humanitarian crisis in Gaza.
The Foreign Secretary further considered explicitly endorsing the International Court of Justice’s non-binding 2024 opinion that declared Israel’s occupation of territory currently recognised by the UK as the State of Palestine to be unlawful.
Even so, UK officials fear the announcement could cause an early setback in Burnham’s relationship with Trump.
To defuse a backlash from the Trump administration, British diplomats privately informed the US that the sanctions are largely symbolic and will have no tangible impact on the UK’s broader trade or security ties with Israel, according to sources familiar with the discussions.
The proposals were drawn up after Israel decided to issue tenders for the construction of 1,200 settlement housing units in an area of the West Bank.
Disputes between Israeli settlers and Palestinians have intensified in recent months as Israeli Prime Minister Benjamin Netanyahu faces a difficult battle to retain his seat in a general election scheduled for 27 October.
Burnham joined the leaders of Canada and five European governments, including France, Germany, and Italy, in signing a statement that condemned the housing plan as “unacceptable” and urged Netanyahu to withdraw the tender.
In a separate statement, German Chancellor Friedrich Merz condemned a call by Israeli National Security Minister Itamar Ben Gvir for “nightly assassinations” in Gaza.
Burnham is eager to demonstrate early to the Labour Party that he is adopting a more critical approach toward Israel than his predecessor, Keir Starmer.
Although Starmer hardened his stance against Israel during his two years in office, including by formally recognising the State of Palestine, his initial refusal to demand that Netanyahu halt military operations in Gaza divided the party.
This division led to a decline in Labour’s poll ratings and boosted electoral gains for the Green Party across the country.
Burnham’s return to Parliament last month led to Starmer’s resignation. Burnham apologised for Labour’s handling of Israel’s military operation in Gaza under his predecessor, stating that the party “did not adopt the right stance”.
Last month, Burnham’s new Defence Secretary, Wes Streeting, who faced intense competition from a Muslim independent candidate in his northeast London constituency at the last general election, stated that Israel had fallen “short” of international standards.
US Ambassador to Israel Mike Huckabee told the BBC’s “Newsday” programme that there would “undoubtedly” be a US response.
Accusing the Labour Party of “discriminating against the Israeli government”, Huckabee said: “It is like throwing a rock and not knowing where it lands. The UK is a sovereign country and can do as it pleases, but so is the US.”
Republican Florida Congressman Randy Fine also warned that British firms would be barred from doing business with local governments in the state if sanctions were imposed.
In a post on X, Fine said: “Florida has made its stance clear. Any company—or country—that boycotts Israel will be boycotted by Florida.”
Labour MPs and Jewish groups have warned the government that any sanctions against the settlements could amount to a “de facto boycott” of Israeli goods and compromise the safety of British Jews.
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