Stocks fall…US imposes new trade tariffs…EU, Mexico pledge to retaliate
NEW YORK (AP) – Stocks are mostly lower in early trading on Wall Street following big swings over the last two days. Steelmakers are rising after the Trump administration announced that it will impose tariffs on steel and aluminum imported from Europe, Canada and Mexico. General Motors is surging after SoftBank of Japan said it will invest $2.25 billion in GM’s autonomous car business.
WASHINGTON (AP) – The Trump administration is announcing tariffs on steel and aluminum imports from the European Union, Canada and Mexico. Commerce Secretary Wilbur Ross says there will be a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum. Mexico and the European Union say they will respond with countermeasures. Mexico says it will impose tariffs on U.S. imports including pork bellies, apples, grapes, cheeses and flat steel. The president of the European Commission says the EU will impose additional duties on a number of imports from the U.S.
WASHINGTON (AP) – Americans boosted their spending by 0.6 percent in April, the biggest increase in five months, while a gauge of inflation remained at the Federal Reserve’s optimal level for a second straight month. The Commerce Department says last month’s increase in consumer spending was the largest increase since a 0.7 percent rise last November. An inflation measure closely watched by the Fed rose by 2 percent in April, compared to a year ago.
WASHINGTON (AP) – Fewer Americans signed contracts to buy homes in April, reflecting the dearth of properties being listed for sale. The National Association of Realtors says its pending home sales index fell 1.3 percent in April to 106.4, after rising for two consecutive months. The index has drifted downward 2.1 percent from a year ago as the housing shortage has grown more intense.
DETROIT (AP) – The Japanese technology conglomerate SoftBank will spend $2.25 billion for a nearly a 20 percent stake in General Motors’ autonomous vehicle unit. The move widens the SoftBank Vision Fund’s influence in ride-hailing services. The fund closed a deal in January to spend about $9 billion for a 15 percent stake in Uber. GM says it will also sink another $1.1 billion into its GM Cruise automated division to speed large-scale deployment of self-driving robotaxis next year.