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Nvidia and AMD to pay 15% of China chip sales to US

Chip giants Nvidia and AMD have agreed to pay the US government 15% of Chinese revenues as part of an “unprecedented” deal to secure export licences to China, the BBC has been told.

The US had previously banned the sale of powerful chips used in areas like artificial intelligence (AI) to China under export controls usually related to national security concerns.

Security experts, including some who served during President Donald Trump’s first term, recently wrote to the administration expressing “deep concern” that Nvidia’s H20 chip was “a potent accelerator” of China’s AI capabilities.

Trump on Monday dismissed security concerns, saying the chip in question was “old”.

Under the agreement, Nvidia will pay 15% of its revenues from H20 chip sales in China to the US government.

AMD will also give 15% of revenue generated from sales of its MI308 chip in China to the Trump administration, which was first reported by the Financial Times.

Nvidia told the BBC: “We follow rules the US government sets for our participation in worldwide markets.”

It added: “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.”

AMD did not immediately respond to a request for comment.

The deal sparked surprise and concern in the US, where critics said it raised security risks and questions about the Trump administration’s approach to dealing with private businesses.

“You either have a national security problem or you don’t,” said Deborah Elms, head of trade policy at the Hinrich Foundation.

“If you have a 15% payment, it doesn’t somehow eliminate the national security issue,” she added.

On social media, some investors called the arrangement a “shakedown”, while others compared the requirement to a tax on exports – which has long been considered illegal in the US.

“Regardless of whether you think Nvidia should be able to sell H20s in China, charging a fee in exchange for relaxing national security export controls is a terrible precedent,” wrote Peter Harrell, a fellow at the Carnegie Endowment for International Peace who formerly worked for the Biden administration.

“In addition to the policy problems with just charging Nvidia and AMD a 15% share of revenues to sell advanced chips in China, the US Constitution flatly forbids export taxes,” he added.

Democratic congressman Jake Auchincloss said: “Now the US government is financially motivated to sell AI to China? Makes me shudder to think what a TikTok deal might look like.”

The H20 chip was developed specifically for the Chinese market after US export restrictions were imposed by the Biden administration in 2023.

Sales of the chip were effectively banned by Trump’s government in April this year.

Beijing has previously criticised the US government, accusing it of “abusing export control measures, and engaging in unilateral bullying”.

Nvidia’s chief executive Jensen Huang has spent months lobbying both sides for a resumption of sales of the chips in China.He reportedly met US President Donald Trump last week.

Charlie Dai, vice president and principal analyst at global research firm Forrester, said the agreement to hand over 15% of China chip sales to the US government in exchange for export licences was “unprecedented”.

“The arrangement underscores the high cost of market access amid escalating tech trade tensions, creating substantial financial pressure and strategic uncertainty for tech vendors,” he added.

In a letter last month to US Commerce Secretary Howard Lutnick, a group of 20 security specialists said that while the biggest buyers of Nvidia’s H20 chips were civilian companies in China, they expect them to be used by the military.

They wrote: “Chips optimized for AI inference will not simply power consumer products or factory logistics; they will enable autonomous weapons systems, intelligence surveillance platforms and rapid advances in battlefield decision-making.”

In a statement to the BBC, Nvidia said: “America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.”

The Nvdia and AMD agreement comes as the boss of Intel, a rival chip maker, met with Trump at the White House on Monday after the president called for his immediate resignation due to his ties to China.

Intel said the pair had “a candid and constructive discussion on Intel’s commitment to strengthening U.S. technology and manufacturing leadership”.

Trump wrote on Truth Social the meeting was “a very interesting one”.

“Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week,” Trump added.

Last week, Trump said on social media that Lip-Bu Tan was “highly conflicted”, apparently referring to his alleged investments in companies that the US said were tied to the Chinese military.

Mr Tan pushed back, stating it was “misinformation”. (BBC)

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Australia to recognise Palestinian statehood; New Zealand may follow

Australia will recognise a Palestinian state in September, Prime Minister Anthony Albanese has announced, drawing condemnation from Israel.

Albanese said on Monday that his government would formally announce the move when the United Nations General Assembly (UNGA) meets in New York.

“A two-state solution is humanity’s best hope to break the cycle of violence in the Middle East and to bring an end to the conflict, suffering and starvation in Gaza,” Albanese said at a news conference in Canberra.

Australia’s announcement comes as Canada, France and the United Kingdom are also preparing to formally recognise Palestine at the meeting next month, joining the vast majority of UN member states that already do so.

Israeli Ambassador to Australia Amir Maimon said recognition of a Palestinian state will do nothing to end the war in Gaza, telling the Australian Broadcasting Corporation (ABC): “We reject the recognition, unilateral recognition.”

Israeli President Isaac Herzog also slammed the Australian announcement as a reward for Hamas for its October 7, 2023, attack on southern Israel, repeating the Israeli government’s stance on all recognition announcements thus far.

This latest recognition comes about a week after hundreds of thousands of Australians marched across the Sydney Harbour Bridge to protest Israel’s war in the Gaza Strip.

Speaking a day after the protest, Australian Minister for Foreign Affairs Penny Wong told ABC that “there is a risk there will be no Palestine left to recognise.”

“In relation to recognition, I’ve said for over a year now, it’s a matter of when, not if,” Wong added.

The opposition Liberal Party criticised the move, saying it put Australia at odds with the United States, its closest ally, and reversed a bipartisan consensus that there should be no recognition while Hamas remains in control of Gaza.

“Despite his words today, the reality is Anthony Albanese has committed Australia to recognising Palestine while hostages remain in tunnels under Gaza and with Hamas still in control of the population of Gaza. Nothing he has said today changes that fact,” Liberal Party leader Sussan Ley said in a statement.

“Recognising a Palestinian state prior to a return of the hostages and defeat of Hamas, as the Government has today, risks delivering Hamas one of its strategic objectives of the horrific terrorism of October 7.”

The Australian Greens, the fourth largest party in parliament, welcomed the move to recognise Palestine but said the announcement did not meet the “overwhelming calls from the Australian public for the government to take material action”.

“Millions of Australians have taken to the streets, including 300,000 last weekend in Sydney alone, calling for sanctions and an end to the arms trade with Israel. The Albanese Government is still ignoring this call,” Senator David Shoebridge, the party’s spokesperson on foreign affairs, said in a statement.

The Australian Palestine Advocacy Network (APAN) also criticised the announcement, describing it as a “political fig leaf, letting Israel’s genocide and apartheid continue unchallenged, and distracting from Australia’s complicity in Israeli war crimes via ongoing weapons and components trade”.

“Palestinian rights are not a gift to be granted by Western states. They are not dependent on negotiation with, or the behaviour or approval of their colonial oppressors,” APAN said in a statement.

According to Albanese, Australia’s decision to recognise Palestinians’ right to their own state will be “predicated on the commitments Australia has received from the Palestinian Authority (PA)”.

These “detailed and significant commitments” include the PA reaffirming it “recognises Israel’s right to exist in peace and security” and committing to “demilitarise and to hold general elections”, Albanese said while announcing the decision.

The PA is a governing body that has overseen parts of the Israeli-occupied West Bank since the mid-1990s.

It has not held parliamentary elections since 2006 and has been criticised by some Palestinians for helping Israel to keep tight control over residents in the occupied West Bank.

Albanese said the commitments secured by Australia were “an opportunity to deliver self-determination for the people of Palestine in a way that isolates Hamas, disarms it and drives it out of the region once and for all”.

Hamas has been in power in the Gaza Strip since 2007 when it fought a brief war against forces loyal to PA President Mahmoud Abbas.

Meanwhile, New Zealand Foreign Minister Winston Peters said on Monday that his country’s cabinet will make a formal decision on Palestinian statehood in September.

“Some of New Zealand’s close partners have opted to recognise a Palestinian state, and some have not,” Peters said in a statement.

“Ultimately, New Zealand has an independent foreign policy, and on this issue, we intend to weigh up the issue carefully and then act according to New Zealand’s principles, values and national interest.”

Peters said that while New Zealand has for some time considered the recognition of a Palestinian state a “matter of when, not if”, the issue is not “straightforward” or “clear-cut”.

“There are a broad range of strongly held views within our Government, Parliament and indeed New Zealand society over the question of recognition of a Palestinian state,” he said.

“It is only right that this complicated issue be approached calmly, cautiously and judiciously. Over the next month, we look forward to canvassing this broad range of views before taking a proposal to Cabinet.”

Of the UN’s 193 member states, 147 already recognise Palestinian statehood, representing three-quarters of the world’s countries and the vast majority of its population.

Under its 1947 plan to partition Palestine, the UNGA said it would grant 45 percent of the land to an Arab state although this never eventuated.

The announcements by Australia and New Zealand on Monday came hours after an Israeli attack killed five Al Jazeera staff members in Gaza City and as Israeli Prime Minister Benjamin Netanyahu continues to threaten a full-scale invasion of the city in the north of the Gaza Strip.

Israel’s war on Gaza has killed at least 61,430 people, according to Gaza’s health authorities.

More than 200 people, including 100 children, have died from starvation under Israel’s punishing siege, according to health authorities. (Aljazeera)

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Crystal Palace lose appeal to CAS over Europa League demotion

The Court of Arbitration for Sport (CAS) has rejected Crystal Palace’s appeal against their demotion from the Europa League to the Conference League over multi-club ownership (MCO) rules.

UEFA’s Club Financial Control Body (CFCB) ruled last month that Palace were too closely linked to Lyon.

Palace’s appeal had three strands: the CFCB’s decision was unfair and unjust, against Forest being elevated to the Europa League, and against Lyon’s participation. All three were rejected by CAS.

Nottingham Forest are the beneficiaries, promoted from the Conference League to play in the Europa League. Palace must enter the Conference League in the playoff round later this month, when they will play the losers of the Europa League tie between Fredrikstad and FC Midtjylland — the second leg is being played on Thursday.

Palace qualified for the Europa League by beating Manchester City in the FA Cup final in May, but seven days later Paris Saint-Germain’s victory in the Coupe de France final meant Lyon moved up from the Conference League to the Europa League.

If two clubs are in violation of the MCO regulation, the team that finishes higher in the league will play in the European competition. Even though Palace (12th) won the FA Cup and Lyon (sixth) only qualified on a technicality, the league placing alone determined the right to play.

It all came down to the shareholding of John Textor, through Eagle Football Holdings Limited, who had a controlling interest in Lyon and 43.9% of Palace. The Premier League club argued that Textor had no say in the running of Palace, but regulations relating to decisive influence forbid any party from holding more than 30% of the total shareholding in more than one club in the same competition.

Textor last month completed the sale of his Palace stake to New York Jets owner Woody Johnson, but UEFA’s rules are determined by a club’s situation as of March 1.

A CAS statement said: “After considering the evidence, the Panel found that John Textor, founder of Eagle Football Holdings, had shares in CPFC and OL and was a board member with decisive influence over both clubs at the time of UEFA’s assessment date.

“The Panel also dismissed the argument by CPFC that they received unfair treatment in comparison to Nottingham Forest and OL. The Panel considered that the UEFA Regulations are clear and do not provide flexibility to clubs that are non-compliant on the assessment date, as CPFC claimed.”

Before this summer, no club had been removed from European competition due to MCO rules, but Palace became the third to be affected by the new stricter application of the regulations which required clubs to be compliant by March 1, rather than June 3 as in recent seasons.

Crystal Palace players with the Community Shield trophy

Irish club Drogheda United were scratched from the Conference League due to an ownership conflict with Danish club Silkeborg IF, and Hungary’s Győri ETO will take part in the Conference League with FC DAC 1904 Dunajská Streda removed.

Drogheda won the FAI Cup in November, with the Irish league run on a calendar basis. It wasn’t until June 1 that Silkeborg qualified for the Conference League — three months after the new MCO deadline. Drogheda and FC DAC 1904 Dunajská Streda appealed to the CAS, but lost.

Drogheda’s appeal was very similar to Palace’s, with complaints about the March 1 deadline and “alleged unequal treatment by UEFA.” As CAS had already ruled against the Irish side, creating precedent, Palace were always going to face a difficult struggle to come away with a favourable verdict.

Palace and Drogheda would both likely argue that it’s unfair to place such restrictions on clubs that usually have no chance of qualifying for Europe.

When the March 1 deadline approached, Palace had not played their fifth round tie in the FA Cup. For Drogheda, who finished ninth, they did already know they had European football, but Silkeborg (seventh) were not expected to do so and claimed a European playoff in Denmark only after finishing top of the relegation group.

Earlier this year, Liga MX’s Club León were removed from the FIFA Club World Cup due to an ownership conflict with fellow Mexican club Pachuca, indicating a change in approach to MCO from football’s regulatory bodies.

The decision from CAS comes after Palace triumphed over Liverpool to lift the Community Shield on Sunday.

With the scores locked at 2-2 after 90 minutes, Palace prevailed with a 3-1 win in the shootout to lift their second piece of silverware in the space of three months.

Palace chairman and co-owner Steve Parish, speaking after his team’s win at Wembley, said the south London club would look for any alternative solutions should the verdict not go their way.

“If we don’t get the right outcome, then we will have to look if there’s any steps after that,” Parish said. (ESPN)

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Joshua eyes Ronaldo signing with new football agency

Anthony Joshua and boxing promoter Eddie Hearn are building a new football agency, with the ambitious goal of attracting top-tier players such as Cristiano Ronaldo, PUNCH Sports Extra reports.

The venture, driven by Joshua’s vision and backed by Hearn’s Matchroom Sport, aims to offer a 360-degree service for footballers, covering everything from transfers and sponsorships to lifestyle management and long-term career planning.

 “We’ve been fine-tuning the plans for months,” Hearn told the Daily Mail.

 “AJ went and posted about it on Instagram, and everything went mental, players, clubs, sponsors, media, everyone came to us.”

The agency is targeting elite talent, with Hearn making clear their intention, “I’m not interested in representing a couple of lower league players. I want to enter at the highest level.”

Joshua’s profile, especially in the Middle East, is already opening doors. He has spoken with five-time Ballon d’Or winner Ronaldo on multiple occasions in Saudi Arabia, as CR7 turns out in that region for Al-Nassr, with it being that standard of player that is being targeted.

Hearn added, “AJ can speak to any player he wants. One of the biggest challenges agencies face when recruiting players is simply getting in front of them. AJ can get in front of any player in the world tomorrow. In fact, players are already speaking to him.

“He’s had discussions. They know what we do. How good Matchroom is, and they know the power AJ has. AJ’s post certainly pricked up a few ears from those big names. A lot of people are interested already.

“Ronaldo didn’t DM me, but let’s just say a few eye emojis popped up. Quite a few high-profile players sent them. They weren’t saying they were signing with us tomorrow, but they were definitely showing interest. There are conversations to be had, for sure.”

There’s no confirmed launch date, but the duo are preparing to disrupt football management just as they have in boxing and darts. (Punch)

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Mandalorian actress settles lawsuit with Disney over firing

Actress Gina Carano has settled her lawsuit against Disney and Lucasfilm after she was fired from Star Wars franchise spin-off The Mandalorian.

She was dropped from the cast in 2021 following comments she made comparing being a Republican in the US to being a Jew during the Holocaust.

Ms Carano, a former MMA fighter who played Cara Dune in the Disney+ series, shared the news of the settlement on X, writing “I hope this brings some healing to the force.”

The agreement, which has not been made public, comes after her case gained support and funding from Elon Musk.

Ms Carano described the settlement as the “best outcome for all parties involved,” adding she was “excited to flip the page and move onto the next chapter”.

She also thanked Musk, saying she’d never met the tech billionaire but he stepped in to do this “Good Samaritan deed for me in funding my lawsuit”.

“Yes, I’m smiling”, she signed off.

The actress originally sued for wrongful termination and sexual discrimination, claiming that two of her male co-stars had made similar posts and faced no penalty.

She had sought $75,000 (£60,000) in damages and to be recast in the popular series.

Lucasfilm had condemned her comments in 2021 for “denigrating people based on their cultural and religious identities”.

In a statement released since the settlement, the production company said that it looks forward to “identifying opportunities to work together”.

The company described Ms Carano as someone who “was always well respected by her directors, co-stars, and staff. She worked hard to perfect her craft while treating her colleagues with kindness and respect,” it added.

Ms Carano is a former mixed martial arts fighter and has faced pushback in the past for deriding mask-wearing policies during the Covid pandemic and making false claims of voter fraud in the 2020 US presidential election, which Donald Trump lost to Joe Biden. (BBC)

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Tension disrupts APC rally in Nsukka, rally continues despite interruption

An All Progressives Congress (APC) rally held in Opi-Nsukka, Enugu State, was temporarily disrupted on Saturday following reported incidents of violence, including the destruction of canopies and rally materials.

Witnesses said the rally was interrupted multiple times before party supporters regrouped and continued the event. Party officials also alleged that campaign posters of President Bola Ahmed Tinubu were torn during the disturbance.

A former governorship aspirant and ex-commissioner in the state, Mr. Peter Okonkwo, who addressed the crowd after the rally reconvened, described the disruption as an attack on the party’s peaceful assembly. He noted that despite the setback, party members remained resolute in their support for the APC and President Tinubu.

“They tried to disperse us multiple times, but we stood firm and came back stronger,” he said. “We are here to show our support for the President and our belief in the future of the APC.”

No official confirmation has been made regarding the identity of those responsible for the disruption. The incident took place on the same day the Enugu State Government commissioned several projects in Nsukka, including a 5,000-shop international market and roads.

Top APC leaders in the state condemned the incident and called for an investigation. They included:

Chief Uche Nnaji, Minister of Innovation, Science and Technology

Barr. Ugochukwu Agballah, Enugu State APC Chairman

House of Representatives members: Hon. Sunday Umeha, Hon. Chimobi Atu, and Hon. Prof. Paul Nnamchi.

The party leaders urged the authorities to ensure the safety of political gatherings and allow all parties to freely mobilize support.

Despite the disruption, the rally proceeded with the reception of over 1,000 new members from other political parties including the PDP, Labour Party, APGA, ADP, and YPP.

Minister Nnaji praised the resilience of the attendees and the courage of the new members, describing their defection to the APC as “a significant step toward greater political participation.”

The APC chairman, Agballah, called for a peaceful and fair political environment in the state, noting that previous rallies in other areas had experienced similar challenges.

“We believe in democracy and the right to peaceful assembly,” he said. “We urge all stakeholders to respect that.” (Vanguard)

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Ibadan markets shut as Olubadan Olakulehin is buried

All markets in Ibadanland were ordered closed on Friday morning as the late Olubadan of Ibadanland, Oba Owolabi Olakulehin, is buried.

Oba Olakulehin, the 43rd Olubadan, died on July 7, 2025, two days after his 90th birthday.

He will be buried today, August 8, at the St Peter’s Cathedral, Aremo, Ibadan.

The Babaloja General of Oyo State, Alhaji Yekeen Abass, in a statement on Thursday, directed that all markets be shut from 5 am to 12 noon on Friday, to honour the departed monarch.

The closure, according to Abass, was to pay last respects to the revered traditional ruler who, he said, “diligently served the country, the state and, most importantly, Ibadanland.”

He stated, “Traders and artisans in Ibadan will continue to remember the late monarch for maintaining peace and creating an enabling environment for marketers in the ancient city.

“Let me, therefore, advise the market leaders in Ibadanland to ensure strict compliance with the directive in their various markets.”

The closure, according to Abass, was to pay last respects to the revered traditional ruler who, he said, “diligently served the country, the state and, most importantly, Ibadanland.”

He stated, “Traders and artisans in Ibadan will continue to remember the late monarch for maintaining peace and creating an enabling environment for marketers in the ancient city.

“Let me, therefore, advise the market leaders in Ibadanland to ensure strict compliance with the directive in their various markets.”

Abass also prayed for the soul of the departed king and asked God to grant the royal family the fortitude to bear the loss.

Meanwhile, the final burial ceremony began on Thursday with a lying-in-state at the historic Mapo Hall in Ibadan South East Local Government Area.

Present at the solemn ceremony were members of the Central Council of Ibadan Indigenes, Mogajis (family heads), religious leaders, both Christian and Muslim, traditional worshippers, and other dignitaries.

The Special Adviser to Governor Seyi Makinde on Interfaith Affairs, Femi Ibikunle, described the late Olubadan as “an astute and articulate traditional ruler.”

He said, “The late Oba Olakulehin always had the people’s interest at heart. He was hardworking and accommodating, and his tolerance of all religious groups helped ensure peace during his reign.”

Also speaking, the President of the Ibadan Mogajis, Chief Asimiyu Ariori, said the late monarch lived a meritorious life, leaving an indelible impact on Ibadanland.

On behalf of the family, the first son of the late king, Sunmbo Owolabi, expressed gratitude to CCII, Mogajis, and all indigenes of Ibadan for their support.

He prayed that the city would “continue to wax stronger.”

Later in the evening, a Christian wake was held at the Olubadan Palace in Oke-Aremo, within the Ibadan North Local Government Area, as part of the continuing rites of passage. (Punch)

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Bank of England cuts rate amid tariff concerns

The Bank of England on Thursday cut its key interest rate by a quarter point to four percent, the lowest level in 2.5 years, as it bids to boost a UK economy threatened by US tariffs.

Alongside the expected decision, the BoE forecast British economic growth to hit 1.25 percent this year, slightly better than the central bank’s previous estimate of one percent.

“The direct impact of US tariffs is milder than feared, but more general tariff-related uncertainty still weighs on sentiment,” the BoE said in a statement after studying data gathered by UK businesses.

London and Washington reached an agreement in May to cut levies of more than 10 percent imposed by US President Donald Trump on certain UK-made items imported by the United States, notably vehicles.

The quarter-point cut on Thursday was the BoE’s fifth such reduction since starting a trimming cycle in August 2024.

“Interest rates are still on a downward path, but any future rate cuts will need to be made gradually and carefully,” its governor, Andrew Bailey, said following Thursday’s decision.

The BoE voted 5-4 for the reduction, but not before an unprecedented second vote owing to a three-way split among its nine policymakers that prevented a necessary majority result.

Initially, four members voted for the reduction and four for no change. One member called for a larger cut of 0.50 percent, before switching in favour of a quarter-point drop, as voted for by Bailey.

It was the first time since the BoE became independent of the UK government in 1997 that a second vote had to be held.

“Looking ahead, interest rates are expected to be 3.5 percent in a year, which is slightly higher than before the (latest) meeting,” noted Kathleen Brooks, research director at XTB trading group.

Expectations that the rate will remain at four percent for longer boosted the British pound.

The BoE’s main task is to keep Britain’s annual inflation rate at 2.0 percent, but the latest official data showed it had jumped unexpectedly to an 18-month high in June.

The Consumer Prices Index increased to 3.6 percent as motor fuel and food prices stayed high.

The BoE on Thursday predicted that the annual inflation rate would peak at four percent next month.

Latest official figures show that Britain’s economy unexpectedly contracted for a second month running in May, and UK unemployment is at a near four-year high of 4.7 percent.

This is largely down to Prime Minister Keir Starmer’s Labour government increasing a UK business tax from April, the same month that the country became subject to Trump’s 10-percent baseline tariff on most goods.

Finance minister Rachel Reeves welcomed the latest rate cut, saying in a statement that it helps to “bring down the cost of mortgages and loans for families and businesses”.

The US Federal Reserve last week kept interest rates unchanged, defying strong political pressure from Trump to slash borrowing costs in a bid to boost the world’s biggest economy.

Asked about US tariffs following the decision, Fed Chair Jerome Powell told a press conference: “We’re still a ways away from seeing where things settle down.”

The European Central Bank is meanwhile widely expected to keep rates unchanged at its next meeting, with eurozone inflation around the ECB’s two-percent target.

But that could change, according to some economists, based on how Trump’s tariffs affect the single-currency bloc. (Punch)

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Netanyahu announces plan to take over Gaza City in further escalation

Israel’s security cabinet has approved a plan to take over Gaza City, Benjamin Netanyahu’s office has said, marking another escalation in the 22-month offensive that has killed tens of thousands of Palestinians, destroyed most of Gaza and pushed the territory into famine.

Ahead of the security cabinet meeting, which began on Thursday and ran through the night, the Israeli prime minister had said Israel planned to take control of the entire territory and eventually hand it off to friendly Arab forces opposed to Hamas.

The announced plans stop short of that, perhaps reflecting the reservations of Israel’s top general, who reportedly warned it would endanger the remaining 20 or so living hostages held by Hamas and further strain Israel’s army after nearly two years of regional wars. Many families of hostages are also opposed, fearing further escalation will doom their loved ones.

The resolution by the security cabinet will still need to be approved by the full cabinet, which may not meet until Sunday.

Israel has repeatedly bombarded Gaza City and carried out numerous raids there, returning to different neighbourhoods again and again as militants regrouped. It is one of the few areas of Gaza that has not been turned into an Israeli buffer zone or placed under evacuation orders.

The plan would mean sending ground troops into territory making up approximately 25% of Gaza.

According to Israel’s Channel 12, the plan is being framed as a limited operation rather than a full invasion, apparently to placate military chiefs wary of long-term occupation. The chief of staff, Lt Gen Eyal Zamir, has reportedly warned that occupying Gaza would plunge Israel into a “black hole” of prolonged insurgency, humanitarian responsibility and heightened risk to hostages.

A major ground operation there could displace tens of thousands of people and further disrupt efforts to deliver food to the territory.

The plan would force approximately 1 million Palestinians in Gaza City and other areas into evacuation areas in the southern part of the Gaza Strip. According to sources familiar with the details of the meeting, the evacuation of Gaza City is scheduled to be completed by 7 October.

The Israeli security cabinet’s decision has ignited protests both at home and abroad. Thousands of demonstrators are preparing to take to the streets over the weekend, while families of the remaining hostages held in Gaza fear an escalation could doom their loved ones. Dozens of them protested outside the security cabinet meeting in Jerusalem on Thursday.

Former top Israeli security officials have also come out against the plan, warning of a quagmire with little added military benefit. The Israeli opposition leader, Yair Lapid, denounced the cabinet’s move on Friday, calling it a disaster that would “lead to many other disasters”, including the death of the hostages and the killing of many soldiers, as well as costing Israeli taxpayers tens of billions and causing “diplomatic bankruptcy”.

The British prime minister, Keir Starmer, said Israel’s decision was wrong and urged it to immediately reconsider. “This action will do nothing to bring an end to this conflict or to help secure the release of the hostages. It will only bring more bloodshed,” he said in a statement.

The UN human rights chief, Volker Türk, said the Israeli government’s plan for a complete military takeover of the occupied Gaza Strip “must be immediately halted”.

Netanyahu’s office said that under the plan to defeat Hamas in the Gaza Strip, the Israeli army would prepare to “take control of Gaza City while distributing humanitarian assistance to the civilian population outside combat zones”.

An Israeli official had earlier said the security cabinet would discuss plans to conquer all or parts of Gaza not yet under Israeli control. The official, speaking on condition of anonymity pending a formal decision, said that whatever was approved would be implemented gradually to increase pressure on the Palestinian militant group.

Palestinians, at least 90% of whom have already been displaced at least once by the war and of whom nearly one in 10 have been injured in Israeli attacks, are braced for further misery. There is little remaining of the healthcare system and aid agencies such as the UN have been largely shut out by Israel.

Aya Mohammad, a 30-year-old Palestinian who, after repeated displacement, had returned with her family to Gaza City, said: “Where should we go? We have been displaced and humiliated enough. You know what displacement is? Does the world know? It means your dignity is wiped out, you become a homeless beggar, searching for food, water and medicine.”

At least 42 Palestinians were killed in Israeli airstrikes and shootings across southern Gaza on Thursday, according to local hospitals. (Guardian)

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More than 60 countries scramble to respond to Trump’s latest tariffs

More than 60 countries around the world are scrambling to respond to the latest wave of US tariffs announced by Donald Trump, which came into force on Thursday.

Industry representatives in rich and poor countries warned of job losses as the tariffs upended a decades-old world trading system with rates ranging from 10% to 39%, 40% and 41% for Switzerland, Brazil and Syria.

All over the globe, leaders were attempting to put contingencies in place after Trump’s tariff threats turned to reality at a minute past midnight Washington time.

The Brazilian government said it was planning a state aid plan for companies affected. The president, Luiz Inácio Lula da Silva, said the duties were “unacceptable blackmail”.

Switzerland said it was seeking new talks with the US after a last-gasp mission to Washington by its president, Karin Keller-Sutter, failed to stop a 39% tariff blow that industry group Swissmem described as a “horror scenario”.

In a statement after an emergency meeting with Keller-Sutter, the Swiss cabinet said the tariffs would “place a substantial strain on Switzerland’s export-oriented economy”.

“For the affected sectors, companies and their employees, this is an extraordinarily difficult situation,” Keller-Sutter told reporters.

Taiwan is also continuing talks with the US. Its president, Lai Ching-te, said the 20% rate imposed on the key Washington ally was “temporary”.

Ireland, which is locked into an EU-US deal setting the tariff ceiling at 15%, said it would publish a new plan for diversifying an economy that relies heavily on US multinationals including Intel, Pfizer and Johnson & Johnson, all in Trump’s crosshairs.

Despite a last minute reprieve from Trump for Lesotho with tariffs dropping from 50% to 15%, the impoverished African nation said it was already hurting.

Textile industry players in the country – which produces jeans and other garments for US companies including Levi and Walmart – said the uncertainty around tariffs over the past few months had already devastated the sector, with orders cancelled and jobs cut.

Laos, which, like Brazil and Myanmar, was hit with a 40% rate, was among those handed a steep increase in import duties because of a trade imbalance with the US.

“A 40% tariff is just a nail in the coffin for any industry trying to ship to the United States,” Johannes Somers, the executive chair of the garment manufacturing firm Diep Vu, told Agence France Presse.

“We estimate about 20,000 workers or more could be impacted,” added Xaybandith Rasphone, the head of the Association of the Lao Garment Industry.

The sweeping “reciprocal” rates were announced by the White House a week ago, just before a previous 1 August deadline was due to elapse.

Just before the tariffs came into effect at midnight, Trump claimed on social media that billions of dollars would start flowing into the US as a result.

However, while the customs duties make countries’ exports more expensive and less competitive, they are payable on import and usually passed on to the customer.

“The only thing that can stop America’s greatness would be a radical left court that wants to see our country fail,” the president wrote in capital letters, referencing an ongoing case in the US court of appeals, which is considering whether he exceeded his authority in imposing the tariffs.

Some trading partners had already secured reductions through negotiations or by striking deals, including the UK, Thailand, Cambodia, Vietnam, Indonesia, the Philippines, Japan, South Korea, Pakistan and the EU.

The EU is the only trading partner where its baseline rate of 15% will include previous tariffs. It means, for example, cheeses that are normally hit with import duties of 14.9% will be taxed at 15% and not 29.9%.

However, the deal has only been implemented in part with tariffs of 27.5% still being imposed on EU car imports while the details of the US-EU deal are being finalised.

Hildegard Müller, the president of the German car industry federation, said the EU-US deal had “brought no clarity or improvement” to the industry.

“The sectoral tariffs on cars and automotive parts of 27.5%, which have been in effect since April and May respectively, remain in place and place a significant burden on German automakers and automotive suppliers, as well as on transatlantic trade.

“It is important that the promised agreement is reached now and the relief measures are implemented promptly,” she said.

India’s 25% tariff rate could rise to a total of 50% after Trump signed an executive order on Wednesday imposing an additional levy in retaliation for the country’s purchase of oil from Russia. Delhi has 21 days to respond. Trump has threatened to use the same tactic on other countries that supply Russia. (Guardian)