Macron, Biden Have 'Friendly' Talk to Defuse Submarine Row

US President Joe Biden and France's President Emmanuel Macron shake hands as they attend a bilateral meeting during the G7 summit in Carbis Bay, Cornwall, Britain, June 12, 2021. (Reuters)
US President Joe Biden and France's President Emmanuel Macron shake hands as they attend a bilateral meeting during the G7 summit in Carbis Bay, Cornwall, Britain, June 12, 2021. (Reuters)
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Macron, Biden Have 'Friendly' Talk to Defuse Submarine Row

US President Joe Biden and France's President Emmanuel Macron shake hands as they attend a bilateral meeting during the G7 summit in Carbis Bay, Cornwall, Britain, June 12, 2021. (Reuters)
US President Joe Biden and France's President Emmanuel Macron shake hands as they attend a bilateral meeting during the G7 summit in Carbis Bay, Cornwall, Britain, June 12, 2021. (Reuters)

US President Joe Biden and his French counterpart Emmanuel Macron had a "friendly" phone call Wednesday to defuse a deep row over submarine sales to Australia, promising to meet in person to repair the transatlantic relationship.

The call, which the White House said lasted about 30 minutes, was the first between Biden and Macron since France recalled its ambassador over the surprise US announcement of a deal to build nuclear submarines for Australia -- scuppering a previous French deal to sell conventional submarines.

Paris called the US-Australian plan, which was launched as part of a new Indo-Pacific security group along with Britain, a stab in the back and also pulled its ambassador from Australia, said AFP.

In a joint statement after the call, the two leaders vowed to launch "in-depth consultations... for ensuring confidence" and to meet in Europe at the end of October. The statement also said Macron would order France's ambassador back to Washington next week.

White House Press Secretary Jen Psaki told reporters the talk "was friendly" and Biden was "hopeful this was a step in returning to normal."

The statement said the US recognized the need for stronger European defense to complement the NATO military alliance, a key idea repeatedly floated by the French leader.

In what amounted to an acknowledgement of French anger, the English-language version of the statement issued by the White House said that the management of the dueling submarine deals "would have benefited from open consultations among allies."

The French-language version issued by the Elysee Palace was even more explicit, saying consultations "would have avoided this situation."

There was no word about where the October meeting will be but Biden will already be in Rome and Glasgow at that time for the G20 and COP26 climate summits.

At the annual United Nations summit, French Foreign Minister Jean-Yves Le Drian, after giving the cold shoulder for days, spoke with US Secretary of State Antony Blinken on the sidelines of a meeting and the two expected to meet again Thursday, a US official said.

- 'Good messages' -
France's Naval Group said it will send a detailed invoice in the coming weeks to Australia for cancelling the contract originally worth Aus$50 billion ($36.5 billion, 31 billion euros).

As well as a huge commercial setback, the loss of the deal was also a blow to France's security strategy in the Indo-Pacific region, where it has a presence through overseas territories.

The submarine row plunged Franco-US ties into what some analysts viewed as the most acute crisis since the US-led invasion of Iraq in 2003, which Paris opposed.

After four years of tumultuous relations with ex-president Donald Trump, the spat also dashed hopes of a complete reset under Biden, who took office in January aiming to rebuild frazzled ties with Europe.

Wednesday's call sought at least to settle the mood, with the White House soon after releasing a photo of Biden smiling while speaking to Macron.

"The messages from the call are good. It was recognized that communication should have been better," said Benjamin Haddad, director of the Europe Center at the Atlantic Council, a think tank.

"The US understood that the main shock in Paris did not come so much from the commercial aspect as from the breakdown in confidence," he said.

In another welcome step for Paris, the joint statement added that the US committed "to reinforcing its support to counter-terrorism operations" in the Sahel region of Africa, where French forces are deployed to fight jihadists.

- 'Non-existent dialogue' -

Observers and some of France's European partners had begun wondering how and when Macron would call an end to the face-off, which is playing out just seven months ahead of French presidential elections.

British Prime Minister Boris Johnson showed he was out of patience, using a French-English mix to say it was "time for some of our dearest friends around the world to 'prenez un grip' (get a grip)."

There is still no indication of France making up with Australia, which says its decision to opt for far more capable nuclear-powered submarines is part of a long-term strategy to contain China's rising presence in the Indo-Pacific.

An Elysee official, who asked not to be named, said no decision has been made on the French ambassador's return to Canberra while no call has been scheduled with Australian Prime Minister Scott Morrison.



Trump Says Nations Doing Business with Iran Face 25% Tariff on US Trade

US President Donald Trump speaks with members of the media aboard Air Force One en route from Florida to Joint Base Andrews, Maryland, US, January 11, 2026. REUTERS/Nathan Howard
US President Donald Trump speaks with members of the media aboard Air Force One en route from Florida to Joint Base Andrews, Maryland, US, January 11, 2026. REUTERS/Nathan Howard
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Trump Says Nations Doing Business with Iran Face 25% Tariff on US Trade

US President Donald Trump speaks with members of the media aboard Air Force One en route from Florida to Joint Base Andrews, Maryland, US, January 11, 2026. REUTERS/Nathan Howard
US President Donald Trump speaks with members of the media aboard Air Force One en route from Florida to Joint Base Andrews, Maryland, US, January 11, 2026. REUTERS/Nathan Howard

President Donald Trump said on Monday any country that does business with Iran will face a tariff rate of 25% on any trade with the US, as Washington weighs a response to the situation in Iran which is seeing its biggest anti-government protests in years.

"Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America," Trump said in a post on Truth Social. Tariffs are paid by US importers of goods from those countries. Iran, a member of the OPEC oil producing group, has been heavily sanctioned by Washington for years. It exports much of its oil to China, with Türkiye, Iraq, and India among its other top trading partners.

"This Order is final ‌and ⁠conclusive," Trump said ‌without providing any further detail.

There was no official documentation from the White House of the policy on its website, nor information about the legal authority Trump would use to impose the tariffs, or whether they would be aimed at all of Iran's trading partners. The White House did not respond to a request for comment.

The Chinese embassy in Washington criticized Trump's approach, saying China will take "all necessary measures" to safeguard its interests and opposed "any illicit unilateral sanctions and long-arm jurisdiction."

"China's position against the indiscriminate imposition of tariffs is consistent and clear. Tariff wars and trade wars have no winners, and ⁠coercion and pressure cannot solve problems," a spokesperson of the Chinese embassy in Washington said on X.

Japan and South Korea, which agreed on trade ‌deals with the US last year, said on Tuesday they are ‍closely monitoring the development.

"We ... plan to take any necessary ‍measures once the specific actions of the US government become clear," South Korea's trade ministry said in a ‍statement.

Japan’s Deputy Chief Cabinet Secretary Masanao Ozaki told reporters that Tokyo will "carefully examine the specific content of any measures as they become clear, as well as their potential impact on Japan, and will respond appropriately."

Iran, which had a 12-day war with US ally Israel last year and whose nuclear facilities the US military bombed in June, is seeing its biggest anti-government demonstrations in years. Trump has said the US may meet Iranian officials and that he was in contact with Iran's opposition, while piling pressure on its leaders, including threatening military action.

Tehran said ⁠on Monday it was keeping communication channels with Washington open as Trump considered how to respond to the situation in Iran, which has posed one of the gravest tests of clerical rule in the country since the Iranian Revolution in 1979.

Demonstrations evolved from complaints about dire economic hardships to defiant calls for the fall of the deeply entrenched clerical establishment. US-based rights group HRANA said it had verified the deaths of 599 people - 510 protesters and 89 security personnel - since the protests began on December 28.

While air strikes were one of many alternatives open to Trump, "diplomacy is always the first option for the president," White House press secretary Karoline Leavitt said on Monday.

During the course of his second term in office, Trump has often threatened and imposed tariffs on other countries over their ties with US adversaries and over trade policies that he has described as unfair to Washington.

Trump's trade policy is under legal pressure as ‌the US Supreme Court is considering striking down a broad swathe of Trump's existing tariffs.

Iran exported products to 147 trading partners in 2022, according to World Bank's most recent data.


Iran Summons French, German, Italian, UK Envoys Over Support for Protests

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
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Iran Summons French, German, Italian, UK Envoys Over Support for Protests

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters

Iran on Monday summoned diplomats in Tehran representing France, Germany, Italy and the UK to object to what it described as support by those countries for the protests that have shaken the country, its foreign ministry said.

The diplomats were shown a video of the damage caused by "rioters" and told their governments should "withdraw official statements supporting the protesters", the ministry said in a statement quoted by state television.

In Paris, the French foreign ministry confirmed that "European ambassadors" had been summoned by Iran.


Iran’s Traders, Frustrated by Economic Losses, Turn Against Clerics

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
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Iran’s Traders, Frustrated by Economic Losses, Turn Against Clerics

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters

Iran's bazaar merchants, the trader class who were the financial backbone of the 1979 revolution, have turned against the clerics they helped bring to power, fueling unrest over an economy that has morphed into full-blown anti-government protests.

Frustration among bazaar merchants, from small-scale shopkeepers to large wholesale traders, has grown as their political and economic clout in Iran has diminished over the decades while the elite Revolutionary Guards have tightened their grip on the economy, building sprawling and tightly held networks of power.

"We are struggling. We cannot import goods because of US sanctions and because only the Guards or those linked to them control the economy. They only think about their own benefits," said a trader at Tehran’s centuries-old Grand Bazaar, speaking on condition of anonymity.

The wave of protests that has engulfed the country, posing one of the toughest challenges ever to the clerical leadership, erupted in late December in Tehran's Grand Bazaar, where hundreds of shopkeepers denounced the sharp fall in the rial currency.

The demonstrations quickly swelled and turned political, challenging the Islamic Republic's legitimacy. Protesters burned images of Supreme Leader Ali Khamenei and chanted "Death ‌to the dictator" - ‌undeterred by security forces armed with tear gas, batons, and, in many cases, live ammunition.

Iran’s ‌rulers, ⁠while acknowledging economic difficulties, have ‌blamed their longtime foes the US and Israel for fomenting the unrest. They appear intent on holding onto power at any cost, backed by a security apparatus refined over decades of suppressing ethnic revolts, student movements, and protests over economic hardship and social freedoms.

A combination of international sanctions and the Guards' sprawling economic empire has limited the government's ability to ease the dire economic situation.

Tehran-based analyst Saeed Laylaz said the government has lost control over the situation.

"What is striking is that the unrest began in the bazaar. For merchants, the core issue isn’t inflation - it’s price volatility, which leaves them unable to decide whether to buy or sell," he said.

Economic disparities between ordinary Iranians and the clerical and security elite, along with economic mismanagement and state corruption - ⁠reported even by state media - have fanned discontent at a time when inflation is pushing the price of many goods beyond the means of most people.

Iran's rial currency has lost nearly ‌half its value against the dollar in 2025, with official inflation reaching 42.5% in December.

CONTROL ‍OF SECTORS FROM OIL TO CONSTRUCTION

Created by the republic's ‍late founder Khomeini, the Guards first secured an economic foothold after the Iran-Iraq war in the 1980s, when clerical rulers allowed them ‍to invest in leading Iranian industries.

Their influence expanded exponentially over decades, benefiting from Khamenei's full backing and from opportunities created by Western sanctions, which effectively excluded Iran from the global financial and trading system.

The Guards now control vast sectors of the economy, from oil to transportation, communications, and construction.

Another trader said the crisis was not over, as the Guards have long proved adept at defending their economic interests.

"The government wants to resolve the problem, but it lacks the means and power in this system. The economy is not controlled by the government," said the trader, a 62-year-old carpet seller in Tehran.

All aspects of the country's sanctions-hit oil business have come under the growing influence of the ⁠Guards - from the shadow fleet of tankers that secretly ship sanctioned crude, to logistics and front companies selling the oil, mostly to China.

"No one knows how much of the oil money that the Guards get from selling Iran’s oil returns to the country ... they are too powerful to be questioned about it,” said a senior Iranian official, who asked not to be named.

During his 2013–2021 presidency, pragmatist Hassan Rouhani repeatedly clashed with the Guards, accusing them publicly of resisting budget cuts, while his attempts to curb their commercial networks and assets were largely frustrated.

THE ESTABLISHMENT RELIES ON THE GUARDS TO END UNREST

Even as it has relinquished economic power, the clerical establishment has relied on its loyal forces - the Guards and its affiliated Basij paramilitary - to violently crush ethnic uprisings, student unrest, and protests over economic hardship, preserving the political order.

"Given the sensitive circumstances when the country faces foreign threats, Khamenei cannot upset the Guards by curbing their economic influence. The establishment needs them to quell the protests and confront foreign threats," said an insider, close to Rouhani.

US-based rights group HRANA said it had verified the deaths of 544 people - 496 protesters and 48 security personnel - with 10,681 people arrested since ‌the protests began on December 28 and spread around the country. Reuters was unable to independently verify the tallies.

The authorities have not given numbers of casualties, but officials say many members of the security forces have been killed by "terrorists and rioters" linked to foreign foes, including the US States and Israel.