AP Business Briefs - May 2, 2026

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.

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.

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.

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.