President Donald Trump announced plans to impose a 25% tariff on European Union automobiles beginning next week, claiming the EU has failed to honor trade agreement terms. The move has drawn sharp criticism from European officials and could significantly impact global economic markets.
Bernd Lange, who chairs the European Parliament’s trade committee, condemned Trump’s automotive tariff increase as “unacceptable.” Lange accused the Trump administration of “keeps breaking its commitments,” pointing to previous disputes over steel and aluminum import taxes. While Trump claims the EU isn’t following through on a previously negotiated trade agreement, he has not provided specific details about his concerns. The original deal, negotiated between Trump and European Commission President Ursula von der Leyen last July, established a 15% tariff rate on most imported goods.
In separate defense news, the Pentagon announced Friday it has secured agreements with seven technology firms to integrate their artificial intelligence systems into classified military networks. Google, Microsoft, Amazon Web Services, Nvidia, OpenAI, Reflection and SpaceX will provide resources to “augment warfighter decision-making in complex operational environments,” according to defense officials. Anthropic was notably excluded from the partnerships following legal disputes with the Trump administration regarding AI ethics in warfare applications. While the Defense Department continues expanding AI integration, concerns persist about potential privacy violations and autonomous targeting capabilities.
Trump also indicated his administration remains open to a government bailout of struggling Spirit Airlines, though he emphasized any deal must benefit taxpayers. The president suggested an announcement could come as early as Friday or Saturday, though he provided no specifics. Critics from both political parties and within the administration have opposed using public funds to rescue the budget carrier. Spirit Airlines declined to comment, stating only that operations continue normally, while competing airlines have offered to assist stranded passengers if the carrier fails.
Wall Street continued its record-setting streak Friday, with the S&P 500 gaining 0.3% to reach another all-time high and completing its fifth consecutive winning week. Apple drove much of the gains after reporting stronger-than-expected quarterly profits, with CEO Tim Cook calling it the company’s best March quarter ever. The tech giant earned $29.58 billion, or $2.01 per share, representing a 22% increase from the previous year. Revenue climbed approximately 17% to $111.18 billion, surpassing analyst projections. Cook’s upcoming departure and replacement by John Ternus later this year has also captured investor attention.
For travelers affected by Spirit Airlines’ potential collapse, industry experts recommend seeking “rescue fares” from competitors including American, United, Delta, JetBlue, Frontier and Southwest airlines. Passengers should preserve all documentation and request refunds immediately, while Spirit employees are being offered travel assistance and preferential job interviews with other carriers.
At the Federal Reserve, Trump’s nominee Kevin Warsh faces an unusual situation if confirmed as chair, with current chair Jerome Powell remaining on the board – creating a potential dual power structure unprecedented in nearly 50 years. Recent dissenting votes from multiple Fed officials suggest Warsh may encounter resistance to policy changes.
China has expanded its tariff-free trade program to include Africa’s 20 largest economies, including South Africa and Nigeria, for the next two years. This move contrasts sharply with Trump’s protectionist trade policies and builds on China’s existing tariff elimination for 33 smaller African nations. However, analysts note that most African raw materials like oil and minerals already entered China duty-free, and China’s trade surplus with Africa continued growing last year.
