The Trump administration’s plan to accept a lavish Boeing 747-8 aircraft from the royal family of Qatar has drawn fierce criticism from legal experts, lawmakers, and government watchdogs, who argue that such a transaction would raise profound ethical and constitutional concerns.

If completed, the jet—reportedly worth around $400 million—would mark the largest foreign gift ever received by the US government.

According to multiple American officials cited by the New York Times, the aircraft is set to be retrofitted for temporary use as Air Force One, before eventually being donated to President Donald Trump’s presidential library after he leaves office.

Trump confirmed the intended acceptance of the aircraft in a post on Truth Social, calling it a “gift, free of charge,” and accusing Democrats of being outraged by what he characterized as a transparent and practical decision.

“So the fact that the Defense Department is getting a GIFT, FREE OF CHARGE… so bothers the Crooked Democrats,” Trump wrote, dismissing the criticism as politically motivated.

Qatar denies offering a gift outright

In a move that appears to contradict Trump’s public statement, Qatar’s Ministry of Defence said no final decision had been made and described the matter as a “temporary use” arrangement under discussion with the US Department of Defense.

Qatari spokesperson Ali Al-Ansari clarified that any potential transfer of the aircraft was still under consideration, denying it had been formally offered as a gift.

In February, Mr. Trump inspected the Qatari-owned Boeing 747, just over ten years old, while it was stationed at Palm Beach International Airport.

At the time, The New York Times reported that the aircraft was under consideration as a potential replacement for Air Force One.

Ethics experts, Democrats, and even far-right allies raise red flags

Critics from across the political spectrum argue that the proposed arrangement violates long-standing norms and laws meant to prevent foreign influence and personal enrichment from overlapping with presidential duties.

“Even in a presidency defined by grift, this move is shocking,” said Robert Weissman, co-president of Public Citizen.

“It makes clear that US foreign policy under Donald Trump is up for sale.”

Senator Bernie Sanders of Vermont expressed outrage, writing on social media:

“NO, Donald Trump cannot accept a $400 million flying palace from the royal family of Qatar… It is blatantly unconstitutional.”

Ethics scholar Kathleen Clark from Washington University in St. Louis accused Trump of treating public office as a tool for personal gain.

“He’s committed to exploiting the federal government’s power, not on behalf of policy goals, but for amassing personal wealth,” she said.

Jordan Libowitz of Citizens for Responsibility and Ethics in Washington called the scale of the gift “unprecedented,” adding, “The totality of gifts given to a president over their term doesn’t get close to this level.”

Far-right commentator and Trump ally Laura Loomer also expressed dismay, calling the deal a “stain” on the Trump administration.

Senate Majority Leader Chuck Schumer went further, calling the potential transfer an open invitation to foreign influence. “It’s not just bribery, it’s premium foreign influence with extra legroom,” Schumer quipped.

Legal justifications fail to allay broader concerns

According to a senior US official, the Defense Department has concluded that it is legally permissible to accept the aircraft, NYT said.

Two individuals familiar with an internal legal review, conducted by White House counsel David Warrington and Attorney General Pam Bondi, who previously lobbied on behalf of Qatar, said the review found that transferring the plane to Trump’s presidential library would comply with the law, the publication said.

But the arrangement has done little to soothe critics, who argue that the appearance of impropriety and the overlap with Trump’s Middle Eastern business dealings raise significant questions.

The potential for Trump to have access to the plane post-presidency, even if indirectly, is viewed by watchdog groups as a serious breach of ethical boundaries.

White House defends legality, transparency

Amid the backlash, the White House sought to calm growing controversy.

Press Secretary Karoline Leavitt said that any gift from a foreign government would be handled in full compliance with applicable laws.

“President Trump’s Administration is committed to full transparency,” Leavitt told CNBC.

Speaking to Fox News, Leavitt downplayed concerns about Qatar expecting political favours in return, saying Trump “only works with the interests of the American public in mind.”

A White House official also confirmed that the jet would not be presented to Trump during his visit to the region this week, noting that the situation remains fluid.

A broader pattern of blurred lines

This episode is the latest in a series of controversial moves that have seen Trump increasingly blur the lines between his public office and private interests during his second term.

In recent months, the administration has been linked to a cryptocurrency firm with ties to Middle Eastern investors and has drawn criticism for eroding traditional safeguards around presidential conduct.

An agreement to accept the luxury aircraft and later transfer it to Trump’s library would represent a stark departure from presidential norms and provide further ammunition to critics who argue that Trump has recast the presidency as a platform for personal enrichment.

Whether the deal ultimately proceeds remains to be seen, but even in its current form, it has reignited debates about foreign gifts, presidential ethics, and the limits of executive power.

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Industrial metals, including copper and iron ore, saw positive price movements following an agreement between the US and China to temporarily reduce tariffs on each other’s imports.

Following a US-China agreement to temporarily reduce tariffs, copper prices increased by approximately 1% and aluminium prices rose by almost 3% in Monday afternoon trading. 

On Tuesday, copper was still up 0.2%, while aluminium was also 0.2% higher from Monday’s close. 

Gold prices, however, decreased by over 2% on Monday. However, prices were up nearly 1% on Tuesday.

The US will lower tariffs on most Chinese imports from 145% to 30%, and China will reduce duties on US goods from 125% to 10% for a period of 90 days.

Easing trade tensions

Following discussions, US Treasury Secretary Scott Bessent stated that neither the US nor the other nation involved desired economic decoupling.

Ewa Manthey, commodities strategist at ING Group, said:

This marks a substantial cooling of trade tensions between the US and China; however, questions remain for markets as to what the end game will be, as the measure will be operational for 90 days, and what the eventual level of tariffs will be. 

Tariffs are returning to pre-Liberation Day levels, a better-than-anticipated de-escalation represented by these new rates.

Market participants largely anticipated a de-escalation of tariffs to approximately 50-60%, similar to levels after ‘Liberation Day’. This would have resulted in a less significant increase in Chinese exports, according to analysts at ING Group.

“Although the de-escalation of the trade war benefits both economies, the agreement, which significantly lowers tariffs without any concessions, is likely to be viewed as a particular victory for China,” the analysts added. 

Bessent considers it unlikely that reciprocal tariffs on China will fall below 10%, while the 34% level set by the US President Donald Trump on April 2 would likely be the maximum.

Volatility in metals

Since Trump’s inauguration, metal trading has experienced significant volatility, largely due to presidential statements and tariff uncertainties.

Slowing growth and persistent inflation suggest that tariffs will negatively impact copper and other industrial metals.

Copper experienced its most significant downturn since mid-2022 in April. 

This decline coincided with emerging indications of trade negatively impacting economies.

Specifically, the US economy contracted in the first quarter, and China’s manufacturing sector saw its largest contraction in factory activity since December 2023.

Economic outlook

ING analysts said:

In our view, the reduction of tariffs on China back to 30% is a sufficient enough reduction to allow for a more or less return of normal trade – at this level, we suspect exporters, importers, and consumers will share in absorbing the impact of the tariffs, and overall business will likely resume. 

The 90-day ceasefire is expected to improve China’s growth outlook for the second and third quarters. 

A sharp rebound in China’s exports to the US is likely in May and June as US importers with low inventories resume purchases to capitalise on the ceasefire. 

Depending on the progress of negotiations, another surge in exports could occur in July and August, particularly if the prospects of a long-term agreement remain uncertain towards the end of the 90-day period.

ING analysts have reverted their China growth forecast for the year back to 4.7%, with further upside possible if a bilateral agreement is reached within the 90-day period.

Cautiousness remain

“Despite the optimism, there are reasons to remain cautious; the US-China talks are only just beginning and there still remains plenty of uncertainty,” Manthey said. 

Monday’s tariff announcements, though less severe than anticipated, remain substantial. 

While the impact on global trade growth might be less than previous market expectations, raw material consumption could still be negatively affected.

Additionally, the strengthening US dollar presents a potential headwind for metals prices. 

A sustained rally in the dollar typically makes dollar-denominated commodities, such as many base and precious metals, more expensive for buyers using other currencies. 

The magnitude of this impact will depend on the strength and duration of the dollar’s appreciation, as well as other fundamental factors influencing supply and demand in the respective metals markets.

Manthey said:

With uncertainty still high, volatility is likely to remain elevated across commodities markets.

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Asian equities climbed sharply on Tuesday, extending a global rally after the United States and China agreed to pause their trade war for at least 90 days.

Japan’s Nikkei jumped 2% to reach its highest level since February 25, while Taiwan’s tech-heavy index also gained 2 per cent.

Chinese shares moved higher in early trading, and the MSCI’s broadest index of Asia-Pacific shares outside Japan touched a six-month peak.

On Wall Street, the S&P 500 advanced over 3 per cent and the Nasdaq surged 4.3 per cent, driven by gains in technology and consumer stocks.

The rally followed news that the US would reduce its baseline tariff rate on most Chinese imports to 30% from 145%.

China responded by slashing its own tariffs to 10% from 125%.

A separate White House order also cut the “de minimis” tariff on shipments from China to 54% from 120%, effective May 14, while maintaining a $100 flat fee.

Firms revise outlook for China’s economy

The trade reprieve has prompted several institutions to revise their outlooks for China’s economy.

UBS said in a note that China’s GDP growth in 2025 could reach between 3.7% and 4%, up from a prior estimate of 3.4%, citing a “smaller shock” to trade-related activity.

Morgan Stanley has also upgraded its near-term GDP forecasts for China.

The bank expects second-quarter growth to exceed its current 4.5% projection, driven by front-loaded exports as companies look to benefit from the reduced tariffs.

Third-quarter growth could also display temporary resilience, now expected to come in above 4%.

Nomura has upgraded Chinese equities to “tactical Overweight” and shifted some of its allocation from India into China.

Citi, meanwhile, lifted its target for the Hang Seng Index to 25,000 by year-end, with a forecast of 26,000 by mid-2026.

Baidu, Tencent, TSMC among technology, consumer and internet stocks in focus

The sectors expected to benefit the most from the trade truce include technology, consumer, and communication services, according to several analysts.

Citi strategist Pierre Lau, while remaining cautious on exporters, also prefers domestic-facing sectors, especially consumer and technology.

Morningstar’s Kai Wang said the current recovery may come faster than the last trade war cycle, which saw markets bounce back within a month of tariff relief.

Wang cited Baidu, Tencent and NetEase as attractive picks in China’s communication services sector.

Baidu and Tencent stand out for their investment in artificial intelligence, while NetEase offers exposure to the growing domestic gaming market.

He also highlighted TSMC as a key beneficiary due to its dominant position in advanced semiconductor manufacturing.

Citi Research flagged sectors highly sensitive to tariff changes, including communications infrastructure, tech hardware, and solar equipment.

Companies such as Innolight, JCET, Eoptolink, TFC Optical and JA Solar generate a large portion of their revenues from the US, making them likely beneficiaries of easing trade friction.

Citi is overweight on internet, technology, and consumer sectors, with top picks including Tencent, BYD, AIA, Huaneng Power, Atour and Anta.

The bank also prefers Hong Kong-listed H-shares over mainland A-shares, expecting US rate cuts to support the Hong Kong dollar.

Citi also upgraded PDD Holdings to “Buy,” viewing the trade truce as a boost for its Temu cross-border platform.

The firm expects improved profits in the second quarter as sellers benefit from preloaded inventory and better pricing leverage.

ETFs offer exposure, with caveats

Investors seeking broader exposure to Chinese markets without taking single-stock risk may consider exchange-traded funds such as the KraneShares CSI China Internet ETF (KWEB), iShares China Large-Cap ETF (FXI), and Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR).

However, analysts caution that these funds are prone to sharp price swings, reflecting the volatile nature of Chinese equities.

William Ma, chief investment officer of GROW Investment Group, said the rebound in Chinese stocks could mark the start of a sustained re-rating.

“Policy easing and targeted consumption support from Beijing could deliver an additional boost,” he said, adding that valuations remain undemanding.

Maybank’s CIO Eddy Loh echoed the view, highlighting opportunities in communication services and consumer discretionary stocks as markets reposition for a post-tariff landscape.

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China has quietly lifted a month-long ban on airlines taking delivery of Boeing Co. aircraft, Bloomberg reported on Tuesday citing people familiar with the matter, in what marks one of the first tangible signs of progress following a temporary de-escalation in trade tensions with the United States.

According to sources in the report who declined to be named due to the sensitive nature of the matter, Chinese authorities have informed domestic airlines and relevant government agencies that deliveries of US-made planes can now proceed.

Carriers have been granted flexibility to manage the timing and logistics of these handovers, which had been suspended amid escalating tariffs.

The move offers a shot in the arm for Boeing, which has been grappling with the dual challenges of supply chain disruptions and reputational damage.

The company had become an unexpected casualty in the broader US-China trade dispute, with Beijing retaliating against Trump-era tariffs by halting the acceptance of its jets and imposing steep duties on American aircraft.

Relief could be short-lived if both sides don’t reach a final deal within 90 days

The latest breakthrough comes as part of a broader trade truce between the two largest economies.

The United States has agreed to lower its average tariff rate on Chinese imports from 145% to 30% for a 90-day period.

In response, Beijing cut its own duties on US goods to 10% and dropped additional measures imposed since April 2024.

However, industry insiders caution that the lifting of the delivery ban could prove short-lived if the two sides fail to reach a more durable agreement within the three-month window.

“While deliveries can resume, the longer-term outlook depends on sustained diplomatic and commercial engagement,” one source said.

The Civil Aviation Administration of China and Boeing declined to comment on the latest developments.

Boeing spared cost of rerouting inventory

The reinstatement of deliveries comes as a relief for Boeing, which had begun making contingency plans to find alternate buyers for aircraft originally earmarked for Chinese customers.

Several jets had already been flown back to the US, while interest in the freed-up inventory emerged from carriers in India, Malaysia, and Saudi Arabia.

With approximately 50 aircraft slated for delivery to China this year, the move will spare Boeing the logistical complexity and financial hit of reassigning the planes.

It also unlocks significant payments once the deliveries are completed, helping the company stabilise its balance sheet.

China’s demand remains critical for Boeing despite turbulence

Despite recent setbacks, China remains a critical market for Boeing.

The country is expected to account for 20% of global aircraft demand over the next two decades.

In 2018, nearly one in four Boeing aircraft were delivered to Chinese carriers.

But the company’s presence in China has weakened in recent years, both due to political friction and internal missteps.

China was the first country to ground Boeing’s 737 Max after two fatal crashes, and trade tensions under both the Trump and Biden administrations steered large orders toward rival Airbus.

A separate crisis in January 2024, involving a mid-flight blowout of a door plug, further dented confidence.

Still, Boeing remains a central player in trade diplomacy.

Just last week, the White House announced a UK trade agreement that includes a $10 billion order for 32 Dreamliners destined for British Airways—underlining the growing role of aviation in high-level negotiations.

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Global defence spending hit a record $2.72 trillion in 2024, marking the sharpest annual increase since 1988. 

More than 100 countries raised their defence budgets, with Europe, Asia, and the Middle East driving most of the growth. 

The war in Ukraine has redefined how militaries operate. Cheap, fast, and scalable uncrewed aerial systems have replaced tanks and jets as the most effective tools of modern combat. Nations are drawing different conclusions. 

Ukraine is innovating quickly. Russia is scaling production. The United States is shifting procurement priorities.

The race is not only about who can build the most drones, but who can do it faster, smarter, and cheaper.

Is global defence spending entering a permanent high?

The 2024 numbers are hard to ignore. According to the Stockhold International Peace Research Institute (SIPRI), global military expenditure rose by 9.4% in real terms, the largest increase in over three decades. 

This is the tenth consecutive year of growth and a 37% jump since 2015. Military budgets now account for 2.5% of global GDP and 7.1% of total government spending.

The US remains the top spender at $997 billion, followed by China at an estimated $314 billion.

Russia has also raised its spending to $149 billion, 7.1% of its GDP, despite sanctions and economic pressures.

That is a year-over-year increase of 38%.

But it is Ukraine that stands out. With a military burden of 34% of GDP, it spends a higher share of its economy on defence than any country in the world.

This figure excludes the $60 billion in military aid it received from Western partners, which would push its real defence output to around $125 billion, that is more than India, France or the UK.

In Europe, Germany’s spending jumped by 28% to $88.5 billion, making it the continent’s largest spender, and now the fourth largest spender globally.

Poland’s budget hit 4.2% of GDP, driven by heavy investment in equipment from both Korea and the US.

Even traditionally restrained countries like Japan, Denmark and Sweden are now approaching or exceeding the 2% NATO threshold.

What changed on the battlefield?

The war in Ukraine showed that military power is no longer about who has more tanks. It is about who can produce drones faster, cheaper, and smarter. 

Ukraine built 2.2 million drones in 2024. That figure is expected to double this year. 

In comparison, Russia produced 1.5 million, including loitering munitions, fibre-optic drones and low-cost decoys designed to confuse Ukrainian air defences.

In place of armoured columns, Russia is now using motorcycles to bypass drone detection.

These bikes move in packs, often equipped with jamming equipment and used to rush Ukrainian positions at speed. 

Meanwhile, Ukraine has weaponized first-person-view (FPV) drones that cost $220 and can take out tanks worth millions. 

What’s driving this rapid technological advancement is the country’s bottom-up innovation model.

Soldiers test prototypes on the front lines. Manufacturers make adjustments in real time.

Combat feedback replaces bureaucratic procurement cycles. The entire process happens in weeks, not years.

Russia is pursuing a different strategy. It has centralized production in places like the Alabuga Special Economic Zone, where drone output doubled between 2023 and 2024.

It plans to produce 10,000 Gerbera decoy drones this year. 

Iran and China are supplying the electronics. Russian drones now include optical sensors, AI target recognition, and modems that enable swarm behaviour.

These are not concepts. They are in the field.

The US Army is learning from both countries. Secretary Daniel Driscoll has made clear that legacy systems will be retired in favour of autonomous platforms. 

The Pentagon has launched a $150 billion transformation through initiatives like Replicator and the Army Transformation Initiative.

The goal is to deploy thousands of cheap, autonomous, attritable drones across air, land, and sea.

Who controls the technology supply chain?

Most drones in Ukraine, on both sides, still rely on Chinese components.

Thermal cameras, carbon frames, and lithium-ion batteries largely come from Shenzhen. 

According to the FT, Ukraine’s drone firms spent over $1.2 billion on Chinese parts in 2024 alone.

But China’s September export controls have started to bite. Ukrainian producers now face long delays and rising costs. 

Russian firms, many operating through intermediaries in the Middle East and Central Asia, are still managing to keep production flowing.

While the US is trying to reshape this landscape, Europe lags behind for now. While its budgets are rising, procurement is fragmented. 

Based on data from the Draghi report, between mid-2022 and mid-2023, 63% of EU arms orders went to US suppliers.

Only 22% stayed within the bloc.

Ukraine, despite being at the centre of the drone revolution, cannot yet export its drones.

Domestic firms are pushing for reform, arguing that they need export revenues to sustain innovation. 

Many Western militaries now approach Ukraine as a live laboratory for drone warfare; studying its tactics but not buying its products.

Is there a sustainable economic model?

High defence budgets are colliding with fiscal reality. In Ukraine, all government revenue is now directed to the military. Pensions, education and health are funded entirely by international donors. 

In Germany and France, governments are issuing debt or cutting elsewhere to meet NATO targets.

Japan has raised taxes. The EU is considering allowing military spending under the European Investment Bank’s framework, something that’s never been done before.

For countries like Israel (8.8% of GDP), Russia (7.1%) and Saudi Arabia (7.3%), the defence sector is becoming an industrial anchor.

It fuels R&D, creates jobs, and supports geopolitical positioning. But this model relies on a permanent state of readiness, if not active war.

The US, while financially capable, is rethinking what value looks like in defence. Instead of investing in complex systems that take a decade to build, it now favours platforms that can be designed, tested and deployed within months.

The logic is borrowed from Ukraine, where private drone makers talk to frontline units daily and deliver new models weekly.

What does the next phase look like?

2025 is shaping up to be a transitional year. The world is not just spending more, it is spending differently.

Ukraine is scaling land-based drones for casualty evacuation and logistics. Russia is experimenting with drone swarms that share data mid-flight. The US is focusing on integrating AI into command and control. 

All three are preparing for a future where human presence on the front line is minimal.

But the biggest change is conceptual. War is no longer about territorial control. It is about exhausting the enemy’s systems, their logistics, communications, and air defences.

Drones, especially cheap and intelligent ones, are ideal tools for this. They force adversaries to spend more than they cost to produce.

This is the new calculus. Low-cost autonomy beats high-cost precision. A $1 million missile shot down by a $200 drone is no longer a hypothetical. It is happening every day in Ukraine.

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