Trump says he'll place 25% tariff on autos from EU, accusing bloc of not complying with trade deal
WASHINGTON (AP) — President Donald Trump says he'll increase the tariffs charged on cars and trucks from the European Union next week to 25%, a move that could jolt the world economy at a fragile moment. Trump said Friday in a social media post the EU is not complying with a fully agreed to trade deal, though he did not flesh out his objections. Trump and European Commission President Ursula von der Leyen had agreed to the trade deal last July. It set a 15% tariff on most goods. The U.S. and the EU had previously confirmed their commitment to preserving the trade framework, known as the Turnberry Agreement, named after Trump’s golf course in Scotland.
US military reaches deals with 7 tech companies to use their AI on classified systems
WASHINGTON (AP) — The Pentagon says it's partnering with seven tech companies to tap into their artificial intelligence in classified systems, allowing the military to boost its use of AI to help it fight wars. The Pentagon said Friday that Google, Microsoft, Amazon Web Services, Nvidia, OpenAI, Reflection and SpaceX will provide resources to help “augment warfighter decision-making in complex operational environments." The Defense Department has been rapidly accelerating its use of AI in recent years. Concerns about AI safeguards have been raised by a company not on the list and now battling the Pentagon in court. Anthropic says it wanted assurances in its contract the military wouldn't use its technology in fully autonomous weapons and surveillance of Americans.
Apple beats out earnings estimates with continued iPhone momentum
Apple has posted strong quarterly earnings, beating out Wall Street expectations. The January-March results show continued momentum in iPhone sales. CEO Tim Cook said it was the company's best March quarter ever, with double-digit growth across every geographic segment. Apple earned $29.58 billion, or $2.01 per share, up about 22% from a year earlier. Revenue rose about 17% to $111.18 billion, exceeding analyst expectations. Investors are also focused on the upcoming CEO change and the company's AI strategy. Cook announced earlier this month he will step down, with John Ternus taking over later this year.
Unorthodox leadership change at the Fed: Warsh on deck while Powell remains
WASHINGTON (AP) — President Trump’s pick to lead the Federal Reserve, Kevin Warsh, has said he wants to bring “regime change” to the central bank, but if confirmed by the Senate he will find a Fed already transformed by the White House’s attacks. For the first in almost five decades, there will be a former chair on the central bank’s board, potentially creating an alternate center of power. And on Wednesday multiple officials dissented from the Fed’s statement, a sign they won’t easily roll over for a new chair who has sharply criticized recent policy. It’s all a sharp contrast to the previous three Fed chairs — Ben Bernanke, Janet Yellen, and Jerome Powell — who were all Fed governors before becoming chairs in relatively smooth transitions.
China has now dropped tariffs on imports from every African country except 1
CAPE TOWN, South Africa (AP) — A China policy giving Africa’s biggest economies tariff-free access to its market for the next two years has come into effect. Meanwhile, economic rival the United States is seeking to impose new import taxes under President Donald Trump’s push for protectionism. The China deal covers Africa’s 20 largest economies, including South Africa and Nigeria. China had already dropped tariffs on 33 poorer African countries. Analysts say, though, that most African raw material exports like oil and minerals could already be sent tariff-free to China. They also note that China's large trade surplus with Africa grew even more last year.
Apple leads Wall Street toward more records as oil prices pull back
NEW YORK (AP) — The U.S. stock market is rising toward more records after Apple, Estee Lauder and others joined the list of companies delivering fatter profits for the start of the year than analysts expected. The S&P 500 rose 0.7% Friday and added to its all-time high set the day before. The Dow Jones Industrial Average climbed 27 points, and the Nasdaq composite added 1.2% to its own record. Easing oil prices also helped to steady the stock markets around the world that are still open on the May Day holiday. Treasury yields fell in the bond market.
Bessent wants Americans to avoid easy-money traps and invest in financial literacy
WASHINGTON (AP) — Treasury Secretary Scott Bessent says he’s concerned about the allure of easy money — lottery tickets, buy now, pay later loans and the promise of a crypto windfall. Bessent worries the get-rich-quick mindset often leads Americans farther from financial stability, not closer to it. The billionaire hedge fund manager and the first openly gay treasury secretary has a personal history marked by financial struggles, with humble beginnings in rural South Carolina. Bessent hopes part of his Treasury Department legacy will be promoting financial literacy, helping Americans budget and save. This push comes as the government amasses record debt and critics say Bessent should focus more on lowering Americans' cost of living.
Amtrak may make it easier to bring guns on its trains despite the alleged attempt on Trump's life
Amtrak is considering allowing people to store guns in lockboxes on most of its trains, which critics say would weaken security measures that instead should be strengthened in light of the shooting at last weekend’s White House Correspondents’ Association dinner. Two people familiar with the plans who spoke on the condition of anonymity told The Associated Press that Amtrak hasn't abandoned the proposed plan despite Saturday's attack at the Washington, D.C., event. They say the Trump administration started pushing for Amtrak to make the change months ago. Authorities say a California man traveled by rail across the country with his guns intent on killing President Donald Trump and other administration officials.
Profit for the biggest US oil companies declined in the first quarter, but only on paper
Profit for the two largest oil companies in the U.S. tumbled during the first quarter, a three-month period in which the price of crude and gasoline rocketed higher. It’s a setback on paper only, however, the result of financial hedges that backfired after the U.S. and Israel launched attacks on Iran in late February. Exxon Mobil and Chevron reported quarterly results on Friday, with adjusted profits for both companies topping Wall Street expectations. The shares of both companies, up sharply this week, ticked higher before the opening bell.
Trump gives go-ahead to major new Canada-US oil pipeline
FORT COLLINS, Colo. (AP) — President Donald Trump has granted a key approval to a major new pipeline that would move oil from Canada into the central U.S. The three-foot-wide Bridger Pipeline Expansion would carry up to 550,000 barrels of oil a day from the Canadian border with Montana down through eastern Montana and Wyoming, where it would link up with another pipeline. More state and federal approvals are needed before Casper, Wyoming-based Bridger Pipeline begins construction. Company officials expect to start next year. The pipeline is two-thirds the size of the better-known Keystone XL pipeline that Trump approved in his previous administration and that President Joe Biden canceled upon taking office.
