Business News

EU vows countermeasures to US tariffs; bourbon, jeans, peanut butter, motorcycles easy targets

BRUSSELS (AP) — European Union chief Ursula von der Leyen vowed that U.S. tariffs on steel and aluminum “will not go unanswered” and will trigger tough countermeasures from the 27-nation bloc. “The EU will act to safeguard its economic interests. We will protect our workers, businesses and consumers,” von der Leyen said Tuesday after U.S. President Donald Trump’s imposition of tariffs on steel and aluminum the previous day.

How Elon Musk’s crusade against government could benefit Tesla

WASHINGTON (AP) — Elon Musk has long railed against the U.S. government, saying numerous investigations and safety programs have stymied Tesla, his electric car company, and its efforts to create fleets of robotaxis and other self-driving automobiles. Now, Musk’s close relationship with President Donald Trump means many of those headaches could vanish. On the potential chopping block: crash investigations into Tesla’s partially automated vehicles; a Justice Department criminal probe examining whether Musk and Tesla overstated their cars’ self-driving capabilities; and a government mandate to report crash data on vehicles using technology like Tesla’s Autopilot. The consequences of such actions could prove dire, say safety advocates who credit the investigations and recalls with saving lives.

DOGE’s access to Treasury data risks US financial standing and raises security worries, experts warn

WASHINGTON (AP) — The Department of Government Efficiency’s embed into the federal government has raised a host of concerns, transforming a debate over how to cut government waste into a confrontation over privacy rights and the nation’s financial standing in the world. DOGE is spearheaded by billionaire Donald Trump donor Elon Musk. It has rapidly burrowed deep into federal agencies and taken drastic actions to cut spending. Advocacy groups and labor unions have filed lawsuits in an attempt to save agencies and federal worker jobs, and five former treasury secretaries are sounding the alarm on the risks associated with Musk’s DOGE accessing sensitive payment systems.

Little to no relief from high borrowing costs expected as Fed Chair Powell heads to the Hill

WASHINGTON (AP) — The odds of further interest rate cuts this year by the Federal Reserve dwindled last week as unemployment fell and more officials say they want to see how new policies from the White House affect the economy. While Fed officials penciled in two rate cuts this year at their December meeting, economists and Wall Street investors are increasingly skeptical, with some predicting no reductions at all this year. On Friday, economists at Morgan Stanley said they now expect just one rate cut in 2025, and investors also expect just one — in July — according to pricing in futures markets.

Trump says he will announce 25% steel and aluminum tariffs Monday, and more import duties are coming

WASHINGTON (AP) — President Donald Trump says he’ll announce Monday the United States will impose 25% tariffs on all steel and aluminum imports, including from Canada and Mexico, as well as other import duties later in the week. Shares of U.S. steel companies rose sharply in futures trading before the opening bell Monday. Trump also reaffirms he’ll announce “reciprocal tariffs.” That means the U.S. would impose import duties on products in cases in which another country has levied duties on U.S. goods. The Republican president spoke to reporters aboard Air Force One as he flew on Sunday from Florida to attend the Super Bowl in New Orleans.

Stock market today: Wall Street falls as Trump imposes new tariffs on steel and aluminum imports

Wall Street was trending lower early Tuesday as markets digest the potential effects of the latest tariffs announced by the White House. Investors and economists are also combing through more corporate earnings reports while waiting to hear from Federal Reserve Chair Jerome Powell, who will be giving his semi-annual testimony before Congress. Futures for the S&P 500 fell 0.5%, while futures for the Dow Jones Industrial Average lost 0.3%. Nasdaq futures retreated 0.5% as well. Coca-Cola rose 3.4% after the beverage giant posted better-than-expected fourth-quarter sales on strong volumes in the U.S., China and elsewhere. Coke also beat Wall Street profit forecasts.

A timeline of US-China tit-for-tat tariffs since Trump’s first term

TAIPEI, Taiwan (AP) — China’s tit-for-tat duties on U.S. imports have taken effect. The move on Monday came just hours after U.S. President Donald Trump announced that he wants to slap new duties on all steel and aluminum imports to the U.S. The rapid-fire shots of tariffs and import curbs hearken back to Trump’s first term in office. The U.S. and China engaged in a trade war that spanned most of Trump’s first term and was continued to a certain extent under Trump successor Joe Biden. Trade frictions with Beijing started barely months into Trump’s first term in office and are still unresolved today.

Elon Musk-led group proposes buying OpenAI for $97.4 billion. OpenAI CEO says ‘no thank you’

A group of investors led by Elon Musk says it is offering $97.4 billion to buy the nonprofit behind OpenAI, escalating a dispute with the artificial intelligence company that Musk helped found. Musk and his own AI startup, xAI, and a consortium of investment firms say they want to buy the ChatGPT maker and revert it to its original charitable mission as a nonprofit research lab, according to Musk attorney Marc Toberoff. OpenAI CEO Sam Altman quickly rejected the deal on Musk’s social platform X, saying “no thank you but we will buy Twitter for $9.74 billion if you want.” Musk bought Twitter, now called X, for $44 billion in 2022.

Iran loosens import restrictions on foreign cars and iPhones, trying to mask its economic woes

TEHRAN, Iran (AP) — Iran has lifted import bans on expensive goods like foreign cars and new iPhones, yielding to public demand for the products while also trying to mask the dire straits of its economy. Iran banned the import of foreign cars in 2017 and did not allow iPhones newer than the 13 to be registered on its mobile phone networks. Imports of foreign goods provide Iran with much-needed tax revenues but they also trap Iranians into buying more affordable locally produced vehicles long derided as “death wagons” while boosting the prices of aging, second-hand iPhones.

Ukraine offers rare earth deal to Trump for more US military aid

KYIV, Ukraine (AP) — Ukraine has offered to strike a deal with U.S. President Donald Trump for continued American military aid in exchange for developing Ukraine’s mineral industry. It could provide a valuable source of the rare earth elements that are essential for many kinds of technology. Trump said that he wanted such a deal earlier this month. It was initially proposed last fall by Ukrainian President Volodymyr Zelenskyy as part of his plan to strengthen Kyiv’s hand in future negotiations with Moscow.