logo
Is the US abandoning Ukraine? Aid cuts loom in 2026 budget, Europe pressed to counter Russia

Is the US abandoning Ukraine? Aid cuts loom in 2026 budget, Europe pressed to counter Russia

Economic Times11-06-2025
The United States plans to decrease military assistance to Ukraine in the 2026 budget. Defence Secretary Pete Hegseth says this is a strategic shift. The Trump administration aims to de-escalate the conflict through diplomacy. Washington wants NATO allies to take more responsibility for Europe's defence. Concerns grow over the cost of aid to Ukraine.
The US will cut military aid to Ukraine in 2026, focusing on diplomacy instead, as NATO allies are expected to handle Europe's defence against Russia.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Why is the US cutting aid to Ukraine?
On the ground in Ukraine
Tired of too many ads?
Remove Ads
Is the US deserting the Ukrainians?
The United States has confirmed that it will reduce military aid to Ukraine in the proposed 2026 defense budget. Defense Secretary Pete Hegseth stated before a congressional subcommittee that the decision is a strategic reorientation, with the Trump administration trying to de-escalate the Ukraine conflict through diplomatic efforts rather than prolonged military engagement. Hegseth also said that Washington's NATO allies should take primary responsibility for Europe's conventional defense and deterrence of Russia.This comes when growing concerns within Washington over the sustainability of the multi-billion-dollar aid packages sent to Ukraine since Russia launched its full-scale invasion in February 2022.Over the past two years, the US has committed more than $66 billion to Ukraine, supplying it with advanced weaponry, ammunition, air defense systems, and logistical support.However, with global tensions rising elsewhere, from the Indo-Pacific to the Middle East, and domestic calls for fiscal restraint growing louder, the administration is trying to push its NATO allies to spend more in supporting Ukraine.Testifying at a House Appropriations subcommittee hearing on June 10, Defense Secretary Pete Hegseth confirmed that funding for the Ukraine Security Assistance Initiative (USAI) will be scaled back. 'It is a reduction in this budget,' he told lawmakers, pointing out a viewpoint different from the Biden administration.'This administration takes a very different view of that conflict. We believe that a negotiated peaceful settlement is in the best interest of both parties and our nation's interests, especially with all the competing interests around the globe.'The USAI is a key mechanism for delivering US military aid to Ukraine. While Hegseth did not disclose precise figures, he noted that the Pentagon is reassessing specific systems used in the war, saying they are 'not survivable on the modern battlefield,' hinting at a deeper review of weapons strategy beyond Ukraine.Another view is that the US doesn't want to only focus on the Russian invasion of Ukraine, but a much larger potential economic threat, China. Hegseth hinted that American defense resources must be strategically distributed to counter global threats, particularly in the Indo-Pacific region.At the same time, he called on NATO allies to step up, asserting, 'Europe should take primary responsibility for conventional defense and deterrence of Russia.'This messaging mirrors previous calls from Washington for the European Union and NATO to bear a greater share of the financial and logistical burden in supporting Kyiv.Meanwhile, Ukraine continues to face relentless Russian aerial assaults. Missile and drone strikes recently targeted Dnipropetrovsk Oblast, intensifying pressure on Ukrainian forces and infrastructure.Kyiv urgently requests additional air defense systems, including US-supplied Patriot batteries, to shield its cities and energy grid. However, the US has now reallocated some of these resources, reportedly including 20,000 anti-drone missiles originally designated for Ukraine, to American military operations in the Middle East.Ukrainian officials have not yet formally commented on the proposed aid cuts. Still, analysts warn that any significant drop in Western support could devastate the Ukrainian army and put pressure on Western European NATO countries.Although the US administration's stance is complex to untangle, the US is not deserting Ukraine either. On multiple occasions, President Trump has remained committed to Ukraine's sovereignty.This aid cut may signal a growing prioritization of diplomatic pathways over sustained military funding. The Pentagon is expected to submit its full 2026 budget proposal in the coming weeks.The move will likely spark debate in Congress, where bipartisan support for Ukraine has shown signs of fracturing.The Social Security Fairness Act, passed in January, is another example of budgetary recalibration: it offers domestic spending increases while potentially diverting resources from overseas commitments.Experts believe that the United States is no longer prepared to underwrite an open-ended war in Eastern Europe without a clear endgame and that future support for Ukraine may be shaped more by diplomacy than defence.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

‘He Likes Swiss Watches!': Trump Shocks Horology With Tariffs
‘He Likes Swiss Watches!': Trump Shocks Horology With Tariffs

Mint

time26 minutes ago

  • Mint

‘He Likes Swiss Watches!': Trump Shocks Horology With Tariffs

The Trump administration jolted Switzerland with punitive new tariffs. Few seemed to be more taken aback than buyers and sellers of Swiss watches. Oliver R. Müller, a luxury watch consultant based in Switzerland, was indignant at the blow that tariffs will likely inflict on the country's watch industry, which has recently been relying on demand from the US to offset fading sales in China. 'It's another burden that comes on top of many others,' Müller said in an interview. The administration's 39% tariff on all Swiss imports, if passed along from sought-after brands like Rolex, Patek Philippe and Omega to distributors in the US, would likely lead to retail-price increases of 12% to 14%, Müller estimated. That would add about $1,000 to the $9,500 price of a stainless steel Rolex Submariner. Swiss watches are a longstanding signal of affluence, and over the years the president has been seen wearing various high-end timepieces, including a Rolex. Members of his family and his administration have also sported Swiss watches in public. For observers, that made the 39% levy all the more vexing. 'On top of it all, he likes Swiss watches!' Müller said. High-end watches have been drawing a growing American fan base in recent years, with obsessive owners showing off their collections on social media. The chain retailer Watches of Switzerland, which has locations in tony shopping areas across the US, said in a statement that it would 'continue to work closely with our brand partners to mitigate any potential impact.' Trump administration officials didn't seem to be focused on watches when they put the tariffs in place, instead citing pharmaceuticals as a driving force in the trade imbalance between the countries. The US has no large luxury-watch making industry of its own. Online watch enthusiasts have long clocked the make and reference numbers of the high-end watches of Trump officials. FBI Director Kash Patel has been spotted wearing a Breitling. Former DOGE czar Elon Musk has a TAG Heuer with the SpaceX logo. Secretary of State Marco Rubio — who in a previous political life declared that Trump, had he not inherited a fortune from his father, would be 'selling watches in Manhattan' — has worn a Rolex, too. There were already warning signs in the Swiss watch industry before Trump's tariffs. Exports fell 5.6% in June compared with a year earlier, according to the Federation of the Swiss Watch Industry, a trade group. That was driven by 'significant declines' in sales in the US, as well as Japan and Hong Kong, the group said in a monthly report. Trump lent his name and signature to a line of MAGA-coded timepieces last year, including a $100,000 'Swiss-made' Tourbillon. The makers of the watch, a firm registered as TheBestWatchesonEarth LLC, didn't respond to a request for comment sent through an intermediary. The site states that the watches 'are not political and have nothing to do with any political campaign.' With assistance from Chris Rovzar.

Trump orders firing of labour stats chief after weak July jobs report release
Trump orders firing of labour stats chief after weak July jobs report release

India Today

time26 minutes ago

  • India Today

Trump orders firing of labour stats chief after weak July jobs report release

Trump fires Bureau of Labour Statistics Comissioner Erika McEntarfer (Photo:Reuters) Accuses her of faking July jobs data, demands immediate replacement Claims lack evidence, BLS denies data manipulation allegations Concerns rise over data quality amid mass federal layoffs US President Donald Trump on Friday (local time) ordered that the commissioner of the Labour Department's Bureau of Labour Statistics Erika McEntarfer be fired after data showed weaker-than-expected employment growth in July and massive downward revisions to the prior two months' job counts. McEntarfer was nominated by former President Joe Biden to serve in the role in 2023 and was confirmed by the US Senate the following year. It was not immediately clear whether McEntarfer, whom Trump accused of faking the jobs numbers, had been fired. Trump took to his Truth Social account to inform about McEntarfer's firing. Trump announced the firing of McEntarfer over his Truth Social account Trump lambasted McEntarfer and accused her of producing fake job numbers. "We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified," Trump said. There is no proof that supports Trump's accusations about the BLS tampering with data. The BLS is the statistical agency responsible for creating the employment report, which is closely followed, as well as data on consumer and producer prices. The White House did not respond immediately to questions about Trump's post. ACCUSATIONS As per Reuters, Trump acccused McEntarfer of putting out the job numbers before the elections to help Democrats. The order to dismiss McEntarfer comes at a time when the Trump administration's mass layoffs of federal government workers have raised concerns about the quality of US economic data, long seen as the gold standard. Trump later posted: 'In my opinion, today's Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad.' After his initial post, Labour Secretary Lori Chavez-DeRemer said on X that McEntarfer was no longer leading the bureau and that William Wiatrowski, the deputy commissioner, would serve as the acting director. 'I support the President's decision to replace Biden's Commissioner and ensure the American People can trust the important and influential data coming from BLS,' Chavez-DeRemer said. Earlier this year, Commerce Secretary Howard Lutnick disbanded two expert committees that worked with the government to produce economic statistics. Lutnick has also floated the idea of stripping out government spending from the gross domestic product report, claiming "governments historically have messed with GDP." ECONOMISTS' OVERVIEW The BLS has already reduced data collection for the consumer price data as well as the producer price report. Economists attributed the sharply slower job growth to Trump's trade and immigration policies. The economy created only 73,000 jobs in July. Data for May and June were revised sharply down to show 258,000 fewer jobs created than had been previously reported. As per a report by CNBC, Laura Ulrich, director of economic research for North America at job site Indeed said that the July figure suggests the job market isn't keeping pace with population growth, and is therefore contracting. With inputs from agencies. US President Donald Trump on Friday (local time) ordered that the commissioner of the Labour Department's Bureau of Labour Statistics Erika McEntarfer be fired after data showed weaker-than-expected employment growth in July and massive downward revisions to the prior two months' job counts. McEntarfer was nominated by former President Joe Biden to serve in the role in 2023 and was confirmed by the US Senate the following year. It was not immediately clear whether McEntarfer, whom Trump accused of faking the jobs numbers, had been fired. Trump took to his Truth Social account to inform about McEntarfer's firing. Trump announced the firing of McEntarfer over his Truth Social account Trump lambasted McEntarfer and accused her of producing fake job numbers. "We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified," Trump said. There is no proof that supports Trump's accusations about the BLS tampering with data. The BLS is the statistical agency responsible for creating the employment report, which is closely followed, as well as data on consumer and producer prices. The White House did not respond immediately to questions about Trump's post. ACCUSATIONS As per Reuters, Trump acccused McEntarfer of putting out the job numbers before the elections to help Democrats. The order to dismiss McEntarfer comes at a time when the Trump administration's mass layoffs of federal government workers have raised concerns about the quality of US economic data, long seen as the gold standard. Trump later posted: 'In my opinion, today's Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad.' After his initial post, Labour Secretary Lori Chavez-DeRemer said on X that McEntarfer was no longer leading the bureau and that William Wiatrowski, the deputy commissioner, would serve as the acting director. 'I support the President's decision to replace Biden's Commissioner and ensure the American People can trust the important and influential data coming from BLS,' Chavez-DeRemer said. Earlier this year, Commerce Secretary Howard Lutnick disbanded two expert committees that worked with the government to produce economic statistics. Lutnick has also floated the idea of stripping out government spending from the gross domestic product report, claiming "governments historically have messed with GDP." ECONOMISTS' OVERVIEW The BLS has already reduced data collection for the consumer price data as well as the producer price report. Economists attributed the sharply slower job growth to Trump's trade and immigration policies. The economy created only 73,000 jobs in July. Data for May and June were revised sharply down to show 258,000 fewer jobs created than had been previously reported. As per a report by CNBC, Laura Ulrich, director of economic research for North America at job site Indeed said that the July figure suggests the job market isn't keeping pace with population growth, and is therefore contracting. With inputs from agencies. Join our WhatsApp Channel

Trump orders deployment of 2 nuclear submarines near Russia as tensions escalate between two superpowers
Trump orders deployment of 2 nuclear submarines near Russia as tensions escalate between two superpowers

India.com

time26 minutes ago

  • India.com

Trump orders deployment of 2 nuclear submarines near Russia as tensions escalate between two superpowers

New Delhi: Amid rising tensions with Russia, US President Donald Trump has ordered deployment of two nuclear submarines near Russia. He has also threatened it to face serious consequences. However, he did not say where the submarines will be deployed. Why did Trump deploy nuclear submarines near Russia? Trump informed about this decision on the social media site Truth Social. He blamed the provocative rhetoric of former Russian President Dmitry Medvedev for his decision. During his visit to Scotland on July 28, Trump had announced that Russia has 10 to 12 days to end the Ukraine war. If Russia does not agree to negotiate for a ceasefire during this time, then 'secondary tariffs' will be imposed on countries trading with Russia. What did Trump write on social media post? Trump wrote on the social media site Truth Social, 'Due to the provocative rhetoric of former Russian President and Deputy Chairman of the Security Council Dmitry Medvedev, I have ordered the deployment of two nuclear submarines near Russia, so that provocative statements remain limited to rhetoric only. Words are very precious and sometimes inadvertently serious consequences can be suffered. I hope this will not be such a case.' When Trump called it a dead economy, Russia reminded him of Dead Hand. Dead Hand was an old nuclear weapon control system of Russia that was capable of launching a retaliatory attack even if the country's leadership was gone. Trump called India and Russia 'dead economies' Trump had called India and Russia dead economies after imposing 25% tariff on India on July 30. He had said, 'Let India and Russia sink with their economies, what does it matter to me.' In response to this, former Russian President Dmitry Medvedev had said that the US President has panicked. Medvedev had written on Telegram, 'Trump should remember the dangerous power of the Dead Hand, even though it no longer exists. If the powerful President of America gets so scared by a few words of the former President of Russia, then Russia's path is absolutely correct. We will continue on our path.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store