Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

President Trump and British Prime Minister Theresa May at last year's NATO summit. Photo: Justin Tallis/AFP/Getty Images

You've already read a hundred stories about President Trump's clashes with some of America's closest allies at the G7 summit in Canada. But we've got new details from his private conversations with heads of state that have put some of these leaders on edge leading into next month's NATO summit.

What we're hearing: In one extraordinary riff during his meeting with the G7 heads of state earlier this month in Quebec, Trump told the other leaders: "NATO is as bad as NAFTA." An official read this quote to me from notes transcribed from the private meeting.

Behind the scenes: Trump made the comment after telling the G7 leaders that Crimea probably should belong to Russia because everyone there speaks Russian, the source added. Trump then went on his usual riff about Germany not paying its fair share of defense spending, said the Europeans weren't paying enough and that the U.S. is being ripped off.

  • Then Trump said of the NATO Summit on July 11-12 in Brussels: "It will be an interesting summit. NATO is as bad as NAFTA. It's much too costly for the U.S."

Why this matters: NATO member states are worried about Russian aggression and they want an unambiguous sign that America has their back. By linking NATO to NAFTA — a trade deal that Trump considers an unmitigated disaster for America — Trump reinforced some of the Europeans' worst fears that he'll take a purely transactional approach to next month's summit.

  • Officials from four NATO member countries have told me they're worried Trump undercut the shared values and commitments of the NATO alliance by spending most of his time bashing NATO members for not "paying enough" and meeting their defense spending commitments.
  • Trump is broadly correct about the defense spending. Many NATO members have been shirking their responsibilities and are nowhere near their promise to spend 2 percent of their Gross Domestic Product on defense.
  • But, as one senior European official put it to me: Trump could do a victory lap of sorts at next month's summit, instead of bashing NATO members (which would please Putin.)
  • Trump, the official said, could point out that NATO members have been increasing their defense spending, and say that it's only because of his pressure. The official said he hoped — but wasn't confident — Trump would take this gentler, more diplomatic route.

When Axios shared this reporting with the White House, officials did not attempt to deny these specific comments that were relayed from notes from the G7 heads of state meeting. But NSC spokesman Garrett Marquis said: “The president engaged in a constructive dialogue with his counterparts at G7. Any allegations otherwise are simply wrong.”

1 fun thing: In the same meeting, Trump cracked to the leaders about what was then his upcoming Singapore summit with Kim Jong-un. "It's like baseball," Trump told the G7 leaders, according to the source reading from the meeting notes. "You never know if you are going to hit the ball."

Go deeper:

Get more stories like this by signing up for my weekly political lookahead newsletter, Axios Sneak Peek. 

Go deeper

Dems race to address, preempt stimulus fraud claims

Illustration: Aïda Amer/Axios

Biden officials are working to root out the systematic fraud in unemployment and Paycheck Protection Program claims that plagued the Trump administration’s efforts to boost the economy with coronavirus relief money, Gene Sperling told House committee chairmen privately this week.

Why it matters: President Biden just signed another $1.9 trillion of aid into law, with Sperling tapped to oversee its implementation. And the administration is asking Congress to approve another $2.2 trillion for the first phase of an infrastructure package.

1 hour ago - Politics & Policy

Scoop: Biden close to picking Nick Burns as China ambassador

Nicholas Burns. Photo: Alex Wong/Getty Images

Nicholas Burns, a career diplomat, is in the final stages of vetting to serve as President Biden’s ambassador to China, people familiar with the matter tell Axios.

Why it matters: Across the administration, there's a consensus the U.S. relationship with China will be the most critical — and consequential — of Biden's presidency. From trade to Taiwan, the stakes are high. Burns could be among the first batch of diplomatic nominees announced in the coming weeks.

Biden's Russian sanctions likely to achieve little

President Biden announces new sanctions against Russia. Photo: Chip Somodevilla/Getty Images

Despite bold talk from top administration officials, there's little reason to think the Russia sanctions package President Biden announced Thursday will do anything to alter Russian President Vladimir Putin's behavior or calculus.

Why it matters: While it's true some elements of the package — namely, the targeting of Russia's sovereign debt — represent significant punitive measures against Moscow, it leaves plenty of wiggle room for the Russian president.