US says Europe must take on more of the financial and military burden of defending themselves

International news via Reuters:

The NATO alliance has crafted a summit in The Hague this week to shore itself up by satisfying U.S. President Donald Trump with a big new defence spending goal – but it now risks being dominated by the repercussions of his military strikes on Iran.

The two-day gathering is also intended to signal to Russian President Vladimir Putin that NATO is united, despite Trump’s previous criticism of the alliance, and determined to expand and upgrade its defences to deter any attack from Moscow.

The summit and its final statement are meant to be short and focused on heeding Trump’s call to spend 5% of GDP on defence – a big jump from the current 2% goal. It is to be achieved by investing more in both militaries and other security-related spending.

Spanish Prime Minister Pedro Sanchez, however, upset NATO Secretary General Mark Rutte’s preparations on Sunday as he declared Madrid did not need to meet the new spending target even as Spain approved the summit statement.

Ukrainian President Volodymyr Zelenskiy has had to settle for a seat at the pre-summit dinner on Tuesday evening – rather than a formal session with the leaders when they meet on Wednesday – due to his volatile relationship with Trump.

The U.S. bombing of Iranian nuclear sites at the weekend makes the summit much less predictable than Rutte – a former prime minister of the Netherlands hosting the gathering in his home city – and other NATO member countries would like.

IRAN INTRODUCES UNCERTAINTY INTO SUMMIT

Much will depend on the precise situation in the Middle East when the summit takes place – such as whether Iran has retaliated against the U.S. – and whether other NATO leaders address the strikes with Trump or in comments to reporters.

If the meeting does not go to plan, NATO risks appearing weak and divided, just as European members confront what they see as their biggest threat since the end of the Cold War – Russia – while bracing for possible U.S. troop cuts on the continent.

Under the new defence spending plan, countries would spend 3.5% of GDP on “core defence” – essentially, weapons and troops – and a further 1.5% on security-related investments such as adapting roads, ports and bridges for use by military vehicles, protecting pipelines and deterring cyber-attacks.

Such an increase – to be phased in over 10 years – would mean hundreds of billions of dollars more spending on defence.

Last year, alliance members collectively spent about 2.6% of NATO GDP on core defence, amounting to about $1.3 trillion, according to NATO estimates. The lion’s share came from the United States, which spent almost $818 billion.

US DEMANDS EUROPE SPEND MORE ON ITS OWN DEFENCE

Washington has insisted it is time for Europeans to take on more of the financial and military burden of defending their continent.

European leaders say they have got that message but want an orderly and gradual transition, fearful that any gaps in their defences could be exploited by Putin.

They are particularly keen to stress their spending commitment as Trump has previously threatened not to protect allies that do not spend enough on defence.

A prepared text summit statement agreed by NATO governments and seen by Reuters says: “We reaffirm our ironclad commitment to collective defence as enshrined in Article 5 of the Washington Treaty – that an attack on one is an attack on all.” 

As part of their efforts to keep Trump onside, NATO officials have shunted difficult topics to the sidelines of the summit or kept them off the agenda altogether.

While many European nations see Russia as an ever-growing threat, Trump has expressed a desire for better economic relations with Moscow – a prospect that Europeans think would help Russia to strengthen its military and threaten them more.

Similarly, many Europeans are deeply wary of Trump’s moves to lessen Russia’s diplomatic isolation as part of his efforts to secure a deal to end the war in Ukraine.

The brief summit statement will include just one reference to Russia as a threat to Euro-Atlantic security and another to allies’ commitment to supporting Ukraine, diplomats say.

Additional reporting by Lili Bayer; Editing by Kevin Liffey

President Donald Trump said the U.S. had “obliterated” Tehran’s key nuclear sites

International news via Reuters:

China said the U.S. attack on Iran’s nuclear facilities had damaged Washington’s credibility and warned the situation “may go out of control”, its state broadcaster reported, following a U.N. Security Council meeting on Sunday. 

President Donald Trump said the U.S. had “obliterated” Tehran’s key nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution.

The U.N. Security Council met on Sunday to discuss U.S. strikes on Iran’s nuclear sites as Russia, China and Pakistan proposed the 15-member body adopt a resolution calling for an immediate and unconditional ceasefire in the Middle East.

China’s U.N. Ambassador Fu Cong said parties should restrain the “impulse of force, avoid exacerbating conflicts and adding fuel to the fire,” according to the state broadcaster CCTV.

Fu said parties, especially Israel, “should immediately cease fire to prevent the situation from escalating and avoid the spillover of war.” 

Iran was hurt “but the United States’ credibility was also damaged – both as a country and as a participant in any international negotiations,” Fu added.

State media commentary late on Sunday said the U.S. move was extremely dangerous and provocative. The Global Times newspaper, in an opinion piece, said external military interference would never bring peace, and only “deepen regional hatred and trauma.” 

Guo Jiakun, a spokesperson for China’s foreign ministry, said on Monday that attacking nuclear facilities that were under the supervision of the International Atomic Energy Agency was “a serious violation of the United Nations Charter”. 

China is willing to strengthen communication and coordination with all parties to play a constructive role in restoring peace in the Middle East, Guo said at a regular press briefing.

Guo also said Chinese citizens in Iran who were willing to leave had all been evacuated to safe areas.

With the help of China’s foreign ministry, the Chinese embassy in Iran and other authorities, “3,125 Chinese citizens have been safely evacuated from Iran,” he said. 

Guo added that the number included residents of Hong Kong and Taiwan. China considers democratically-governed Taiwan as its own territory. 

In Israel, the Chinese embassy has organised the evacuation of more than 500 citizens from the country, Guo told the briefing. 

Reporting by Farah Master in Hong Kong, Xiuhao Chen in Beijing and the Beijing Newsroom; Editing by Kim Coghill, Stephen Coates, Saad Sayeed and Kate Mayberry

Unauthorised devices make up 70% of vape sales in the U.S., with sales at $8.14 billion last year

International news via Reuters:

From an office a 15-minute drive from Chicago’s O’Hare International Airport, one small firm helped import millions of unauthorized Chinese-made vapes last year alone, forming a key link in the supply chain feeding U.S. demand for illegal e-cigarettes. 

In a little over four years, the firm, a customs brokerage run by a man named Jay Kim, became a go-to broker for the Chinese vape industry. The firm worked on 60% of all shipments of vapes and vape parts from China to the U.S. in 2024 registered by the Food and Drug Administration, according to a Reuters analysis. 

“A lot of them have FDA authorization,” Kim said in an interview in his office in April, referring to the vape shipments his firm handled. 

However, FDA data on imports into the U.S. of FDA-regulated goods such as tobacco products or medicines showed the products Kim’s firm helped bring into the United States included unauthorized brands like Lost Mary and Geek Bar. 

The FDA has declared those brands illegal to import or sell, warning their array of fruit and candy flavors may appeal to children. The agency says nicotine can harm developing brains, and impact attention, learning and mood in young people, who can get hooked more easily on the addictive chemical. 

A Lost Mary spokesperson said it had no connection or contact with Kim’s firm, and flavors play a key role in helping adult users quit smoking. The maker of Geek Bar did not respond to a request for comment. 

The Chinese city of Shenzhen is the biggest source of vapes, both legal and illegal, coming into the United States. In 2024, China exported more than 26 billion yuan ($3.6 billion) in vapes to the U.S., according to Chinese customs data. But U.S. customs figures show only $333 million in Chinese vapes were officially received in the U.S. that same year. 

Mismatches in custom data between the U.S. and its trading partners are not uncommon, but a 90% gap was unusual, two customs data specialists told Reuters. 

Unauthorized vapes often arrive in the U.S. disguised as other items like shoes and toys, according to the FDA, which leads efforts to control the vape market.

Reuters used FDA and U.S. customs data, interviews with vape and tobacco industry insiders, and information from U.S. regulators and law enforcement to build a picture of how unauthorized vapes make their way onto U.S. shelves.

It found a group of middlemen based on U.S. soil – including some customs brokers and distributors – who played key roles in the vape supply chain, and sometimes take steps to avoid detection. 

Trump Administration officials have promised a crackdown; FDA Commissioner Marty Makary has said the agency will stop illegal imports and distribution. 

“Our borders have been far too porous when it comes to challenges like illegal e-cigarette products coming from other countries,” an FDA spokesperson said, adding that the agency is planning to use artificial intelligence to “stem the flow of products that are appealing to our nation’s children.”

In May, the FDA and Customs and Border Protection announced a $34 million seizure of unauthorized vapes in Chicago. Officials found many of the shipments in the seizure, which took place in February, contained vague product descriptions and incorrect values.

As part of the operation, for the first time, the agency sent letters to 24 middlemen involved in the vape supply chain, including U.S. importers and customs brokers.

The letters warned the middlemen it was a crime to make false statements to the government, and asked them to explain how they ensured they followed tobacco laws, according to the FDA.

Reuters was not able to establish whether Kim was among the customs brokers who received a letter from the FDA. He did not respond to detailed questions about Reuters’ findings.

VAPE MIDDLEMEN

Customs brokers do not buy or sell goods themselves. Rather, they are paid by others, usually the importer, to help navigate the customs process by submitting documents and fielding enquiries from border officials, according to Lenny Feldman, a managing partner at the law firm Sandler, Travis & Rosenberg. 

Customs brokers may be breaking the law if they are found to have not conducted proper due diligence, said Feldman.

Speaking briefly to Reuters at his office in April, Kim said his firm did not deal with vape shipments anymore after exiting the business last year. 

He said that a former employee of his firm had gotten him into working with vape clients and took those customers with her when she left. 

However, the FDA data reviewed by Reuters showed that vape-related shipments handled by Kim have continued throughout 2025, including in June.

The FDA, which was directed to fire 3,500 employees in March, works with CBP to catch unauthorized vape shipments at the border.

A spokesperson for CBP told Reuters the agency seized over 3 million units of illegal vapes valued at $76 million in 2024. “CBP has encountered bad actors exploiting shipments to transit illicit goods, including illegal vapes, synthetic opioids, precursor chemicals and related paraphernalia,” the spokesperson said.  

The FDA said that over the past two years, efforts by FDA and CBP had led to the seizure of around 7.1 million e-cigarettes with an estimated retail value of over $136 million. 

Secretary of Health and Human Services Robert F. Kennedy Jr. said the administration would “wipe out” fruity and sweet flavored vapes from China that appeal to kids. “We are going to get rid of all of them,” he told the Senate Committee on Health, Education, Labor and Pensions in May.

Illinois Congressman Raja Krishnamoorthi said middlemen like Kim bear some responsibility for the flood of vapes, but lays most of the blame with the FDA, which he accuses of sitting idle while illegal vapes flood into the country. 

“The FDA is a disaster. It’s asleep at the switch,” he said. “You have illicit vapes all over the place.” 

IN PLAIN SIGHT

The Trump Administration’s tariffs on China, as well as vape seizures, have already dented supply, Reuters reported this month. Vape shipments recorded by the FDA collapsed in May, with a shortage of popular brand Geek Bar in particular.

The FDA has authorized 34 different vape products made by companies like British American Tobacco and Altria, but no fruity or sweet flavored vapes that the FDA says could appeal to children.

And yet executives at BAT estimate unauthorized devices make up 70% of vape sales in the U.S., valuing their sales at $8.14 billion last year. 

The supply chain ferrying illegal Chinese-made vapes into the U.S. mostly operates in plain sight.

It starts with a network of exporters based in China. After a vape shipment clears customs in the U.S., it is passed along to its U.S. buyer – usually a distributor, which then sells them to smaller wholesalers and retailers nationwide.

The FDA collects data on U.S.-based recipients of vape shipments. The largest in 2024 was Reynolds American, the U.S. subsidiary of BAT.

But the top ten largest U.S. vape recipients also included six obscure firms, opened in 2023 or 2024 and sometimes operating out of residential homes.

The second-largest recipient of vape shipments in 2024 was a Chicago-based company called Somo Trade LLC, established in 2023, Reuters analysis of FDA data and state business filings show.

A woman at the business’ address, a residential home on Chicago’s north side, told a Reuters reporter that the property was not involved in the vape business.

Another recipient of vapes, Rongda Trade, is registered to a house on the same street as Somo Trade, opened the same month, and has already been shut down, its filings show. No one answered the door when Reuters visited the address. 

No one answered at a residential address linked to Lila Trade on Chicago’s southwest side, either. The name of the registered agent, Xiaohong Dai, was not among those listed on four mailboxes out front. 

Reuters could not find websites for any of the firms, and their state business filings did not contain any contact information. 

Meanwhile, in February, New York Attorney General Letitia James sued 13 different companies which she said were major U.S. vape distributors, accusing them of working closely with Chinese manufacturers to fuel the unauthorized vape industry. 

“Together, Defendants have established an industry for flavored e-cigarettes, particularly disposable vapes, and staked out their own lucrative shares in the soaring market,” the complaint states. “All have engaged in reprehensible, illegal conduct and aim to addict youth to their products.”

Mitch Zeller, former head of the FDA’s Center for Tobacco Products during the Obama, Trump and Biden administrations, placed the blame on U.S.-based distributors, such as those named in James’ lawsuit, for feeding demand. 

“There’s only a handful of middlemen, middle companies, that are responsible for taking the illegal, imported stuff being misclassified and mislabeled and getting it into interstate commerce,” he said.   

($1 = 7.1836 Chinese yuan renminbi)

($1 = 0.7374 pounds)

Reporting by Emma Rumney in London, Kaylee Kang in New York and Tom Polansek in Chicago; Editing by Michael Learmonth