BUSINESS HEADLINES

Trump says he’ll place 25% tariff on autos from the EU, accusing it of not complying with trade deal

WASHINGTON (AP) — The head of the European Parliament trade committee calls President Donald Trump’s tariff hike on European Union automobiles “unacceptable.” Committee Chair Bernd Lange says the Trump administration “keeps breaking its commitments,” including on import taxes for steel and aluminum products. Trump said Friday he’ll increase the tariffs charged on cars and trucks from the EU next week to 25%, which could jolt the world economy. The Republican president says the EU is not complying with a fully agreed to trade deal, though he hasn’t fleshed 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.

US military reaches deals with 7 tech companies to use their AI on classified systems

WASHINGTON (AP) — The Pentagon says it has reached deals with seven tech companies to use their artificial intelligence in its classified computer networks This will allow the military to tap into AI-powered capabilities to help it fight wars. The Pentagon said Friday that Google, Microsoft, Amazon Web Services, Nvidia, OpenAI, Reflection and SpaceX will provide their resources to help “augment warfighter decision-making in complex operational environments.” Notably absent from the list is Anthropic, after its legal fight with the Trump administration over the ethics of AI usage in war. The Defense Department has been rapidly accelerating its use of AI. But AI has already raised concerns that its use could invade Americans’ privacy or allow machines to choose targets on the battlefield.

Trump says a Spirit bailout still is possible as doubts about the airline’s survival mount

WASHINGTON (AP) — President Donald Trump says his administration is still weighing a taxpayer-funded takeover of Spirit Airlines “but only if it’s a good deal” for the government. Trump didn’t provide details but said an announcement could come as soon as later Friday or Saturday. Lawmakers from both parties and members of the president’s administration have criticized the idea of using taxpayer funds to keep the ultra-low cost airline afloat. Speculation around the likelihood of a deal emerging has mounted every day that passes without a resolution. An airline spokesperson declined to comment and says “Spirit is operating as usual.” Some U.S. airlines, meanwhile, say they will step in to support Spirit customers if the airline goes under.

Apple leads Wall Street to more records as oil prices pull back

NEW YORK (AP) — The U.S. stock market set 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 climbed 0.3% Friday to its latest all-time high and closed out a fifth straight winning week. That’s its longest such streak since 2024. The Dow Jones Industrial Average dipped 0.3%, and the Nasdaq composite added 0.9% to its own record. Apple led the way after delivering better profit than expected. Easing oil prices also helped steady the stock markets around the world that were still open on the May Day holiday.

Spirit Airlines shutdown: What to do to get home and get refunds

SEATTLE (AP) — The collapse of the U.S.-based Spirit Airlines may mark the end of an era for travelers with a certain financial sensibility. But if you’ve been snagged in their now-defunct flight schedule, here are some things to know on how to get home, and get whole. Look for “rescue fares” and reduced prices on flights from other airlines including American Airlines, United Airlines, Delta Air Lines, JetBlue Airways, Frontier Airlines and Southwest Airlines. Save documentation and request refunds as soon as possible. Employees should be granted travel benefits to get home, and airlines are offering preferential interviews.

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.

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