US President Donald Trumps promises of securing trade deals with major partners took another blow Thursday, with a French minister saying an agreement with the EU was "a long way" off and China insisting talks had not even started. Since returning to the presidency in January, Trump has imposed 10 percent tariffs on most trading partners, including the European Union, as a means of pressuring them to negotiate trade agreements more favorable to the United States. He has also slapped tariffs on sector-specific imports, adding to strained ties with partners. But he saved his toughest blows for China, slapping an additional 145 percent tariff on goods from the worlds second biggest economy this year -- drawing strong retaliation. Even though top US officials have touted 18 proposals brought to the trade team and said Washington was setting the stage for a deal with China, Beijing has called claims of ongoing trade talks "groundless." Separately, Frances economy minister Eric Lombard said Thursday in Washington that the EU and United States are far from reaching a deal on tariffs. - Meeting with China - Asked about the state of negotiations with Beijing, Trump maintained on Thursday: "Weve been meeting with China." He did not give details on who was taking part in these discussions. Yet, hours earlier, Chinese Commerce Ministry spokesman He Yadong told reporters: "I would like to emphasize that there are currently no economic and trade negotiations between China and the United States." Chinas foreign ministry also called reports of ongoing talks "false." On Wednesday, US Treasury Secretary Scott Bessent told reporters that Washington and Beijing were "not yet" speaking on lowering tariffs. He added that staggeringly high tariff levels would have to come down before trade talks can happen, and stressed that Trump has not made any unilateral offer to slash duties on Chinese products. In response to Trumps most recent tariffs on Chinese imports, Beijing hit back with fresh 125 percent levies on American goods this year. Trumps on-again, off-again approach to rolling out tariffs has roiled financial markets, as Washington unveiled steep duties before making carveouts in recent months. Most recently, the Trump administration temporarily excluded tech products like smartphones from his "reciprocal tariffs," which include a 125 percent rate on imports from China. On Thursday, a White House official told AFP the Trump administration was looking at "streamlining overlap" between tariffs on automobiles, steel and aluminum, as well as those imposed over illicit fentanyl. But no final decision has been made on any amendments to tariffs on auto imports and parts, the White House added. - Mixed progress - The picture appears mixed for other trading partners, with Trump unveiling -- then halting -- even steeper levies on many of them. A 90-day pause on these higher levels of "reciprocal tariffs" on dozens of countries is set to expire in early July. Frances Lombard told reporters that the EU is "still a long way from an agreement" with the United States, on the sidelines of the International Monetary Fund and World Banks spring meetings in Washington. But he maintained that talks with the US side were warm, after engaging with officials including Bessent and Commerce Secretary Howard Lutnick. Lombard noted a desire from his counterparts to "move forward as quickly as possible." On Wednesday, Bessent added that the United States was "very close" when it came to trade talks with India, while it is also "proceeding with the other trading partners." Bessent added Thursday that Washington had a "very successful bilateral meeting" with South Korean representatives. "We will be talking technical terms as early as next week," he said. "They came with their A game, and we will see if they follow through on that."
Google parent Alphabet on Thursday reported profit of $34.5 billion in the recently ended quarter, powered by its cloud computing and artificial intelligence operations. Overall revenue at Alphabet grew 12 percent to $90.2 billion compared to the same period a year earlier, while revenue for the cloud unit grew 28 percent to $12.3 billion, according to the tech giant. Alphabet chief executive Sundar Pichai said the strong quarterly results reflect healthy growth and momentum across the business. "Underpinning this growth is our unique full stack approach to AI," Pichai said in an earnings release. He touted the latest Gemini software as Alphabets most intelligent AI model and an "extraordinary foundation" for the Silicon Valley companys innovation. Alphabet shares were up more than three percent in after-market trades that followed release of the earnings figures. "Cloud grew rapidly with significant demand for our solutions," Pichai said of Alphabets services and tools hosted at data centers. Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence. Google and rivals are spending billions of dollars on data centers and more for AI, while the rise of lower-cost model DeepSeek from China raises questions about how much needs to be spent. - Antitrust battles - Meanwhile the online ad business that churns out the cash Google invests in its future could be neutered due to a defeat in a US antitrust case. US government attorneys are urging a federal judge to make Google spin off its Chrome browser, arguing artificial intelligence is poised to ramp up the companys online search dominance. The Department of Justice (DOJ) is arguing its position before District Judge Amit Mehta, who is considering "remedies" after making a landmark decision last year that Google maintained an illegal monopoly in online search. "Nothing less than the future of the internet is at stake here," Assistant Attorney General Gail Slater said prior to the start of the hearings this week in Washington. "If Googles conduct is not remedied, it will control much of the internet for the next decade and not just in internet search, but in new technologies like artificial intelligence." Google countered in the case that the United States has gone way beyond the scope of the suit by recommending a spinoff of its widely used Chrome, and holding open the option to force a sale of its Android mobile operating system. The legal case focused on Googles agreements with partners such as Apple and Samsung to distribute its search tools, noted Google president of global affairs Kent Walker. "The DOJ chose to push a radical interventionist agenda that would harm Americans and Americas global technology leadership," Walker wrote in a blog post. Google is also battling to protect Chrome after a different US judge ruled this month that it wielded monopoly power in the online ad technology market, in a legal blow that could rattle the tech giants revenue engine. The federal government and more than a dozen US states filed the antitrust suit against Google, accusing it of acting illegally to dominate major sectors of digital advertising. District Court Judge Leonie Brinkema ruled that Google built an illegal monopoly over ad software and tools used by publishers. "Google has willfully engaged in a series of anticompetitive acts to acquire and maintain monopoly power in the publisher ad server and ad exchange markets for open-web display advertising," Brinkema said in her ruling. Online advertising is the driving engine of Googles fortune and pays for widely used online services like Maps, Gmail, and search offered free. Combined, the courtroom defeats have the potential to leave Google split up and its influence curbed. Google said it is appealing both rulings.
Google parent Alphabet on Thursday reported profit of $34.5 billion in the recently ended quarter, powered by its cloud computing and artificial intelligence operations. Overall revenue at Alphabet grew 12 percent to $90.2 billion compared to the same period a year earlier, while revenue for the cloud unit grew 28 percent to $12.3 billion, according to the tech giant. Alphabet chief executive Sundar Pichai said the strong quarterly results reflect healthy growth and momentum across the business. "Underpinning this growth is our unique full stack approach to AI," Pichai said in an earnings release. He touted the latest Gemini software as Alphabets most intelligent AI model and an "extraordinary foundation" for the Silicon Valley companys innovation. Alphabet shares were up more than three percent in after-market trades that followed release of the earnings figures. "Cloud grew rapidly with significant demand for our solutions," Pichai said of Alphabets services and tools hosted at data centers. Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence. Google and rivals are spending billions of dollars on data centers and more for AI, while the rise of lower-cost model DeepSeek from China raises questions about how much needs to be spent. - Antitrust battles - Meanwhile the online ad business that churns out the cash Google invests in its future could be neutered due to a defeat in a US antitrust case. US government attorneys are urging a federal judge to make Google spin off its Chrome browser, arguing artificial intelligence is poised to ramp up the companys online search dominance. The Department of Justice (DOJ) is arguing its position before District Judge Amit Mehta, who is considering "remedies" after making a landmark decision last year that Google maintained an illegal monopoly in online search. "Nothing less than the future of the internet is at stake here," Assistant Attorney General Gail Slater said prior to the start of the hearings this week in Washington. "If Googles conduct is not remedied, it will control much of the internet for the next decade and not just in internet search, but in new technologies like artificial intelligence." Google countered in the case that the United States has gone way beyond the scope of the suit by recommending a spinoff of its widely used Chrome, and holding open the option to force a sale of its Android mobile operating system. The legal case focused on Googles agreements with partners such as Apple and Samsung to distribute its search tools, noted Google president of global affairs Kent Walker. "The DOJ chose to push a radical interventionist agenda that would harm Americans and Americas global technology leadership," Walker wrote in a blog post. Google is also battling to protect Chrome after a different US judge ruled this month that it wielded monopoly power in the online ad technology market, in a legal blow that could rattle the tech giants revenue engine. The federal government and more than a dozen US states filed the antitrust suit against Google, accusing it of acting illegally to dominate major sectors of digital advertising. District Court Judge Leonie Brinkema ruled that Google built an illegal monopoly over ad software and tools used by publishers. "Google has willfully engaged in a series of anticompetitive acts to acquire and maintain monopoly power in the publisher ad server and ad exchange markets for open-web display advertising," Brinkema said in her ruling. Online advertising is the driving engine of Googles fortune and pays for widely used online services like Maps, Gmail, and search offered free. Combined, the courtroom defeats have the potential to leave Google split up and its influence curbed. Google said it is appealing both rulings.
New Intel chief executive Lip-Bu Tan on Thursday announced upcoming layoffs at the struggling US chip maker as White House tariffs and export restrictions muddy the market. Tan did not provide details about the number of employees affected, but said he was "a big believer in the philosophy that the best leaders get the most done with the fewest people." Despite the promise of cost-cutting and an earnings report that bested market expectations, Intels share price sank more than five percent after it reined in its financial outlook for the current quarter due to broader market conditions. "The economic landscape has become increasingly uncertain, driven by shifting trade policies, persistent inflation and increased regulatory risk," Intel chief financial officer David Zinsner said during an earnings call. "The very fluid trade policies in the US and beyond, as well as regulatory risks, have increased the chance of an economic slowdown with the probability of a recession growing." Intel reported a loss of $800 million on revenue of $12.7 billion in the first three months of this year. The chip maker forecast revenue of between $11.2 and $12.4 billion in the current quarter. Bloomberg reported that more than 20 percent of staff could be laid off. When asked by AFP for more details about the job cuts, a spokeswoman did not offer figures, but referred to an email to staff from Tan, who said the layoffs would begin in the current quarter and continue "over the next several months." "As we refocus on engineering, we will also remove organizational complexity," Tan said in the note to staff. "There is no way around the fact that these critical changes will reduce the size of our workforce." Malaysia-born tech industry veteran Tan, who took over as Intel chief executive in March, has said it "wont be easy" to overcome challenges faced by the company. - Competition from Nvidia - Intel is one of Silicon Valleys most iconic companies, but its fortunes have been eclipsed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business. The company was also caught by surprise with the emergence of Nvidia as the worlds preeminent AI chip provider. Intels niche has been in chips used in traditional computing processes being eclipsed by the AI revolution. "I strongly believe we can reduce our costs while securing our future," Tan said. "Our competitors are lean, fast and agile -- and thats what we must become to improve our execution." Tans predecessor, Pat Gelsinger, was forced out as Intel chief in December after the board lost confidence in his plans to turn the company around. Former US president Joe Bidens administration last year finalized a $7.9 billion award to Intel as part of an effort to bring semiconductor production to US shores. But Intel in February extended the timeline for completing two new fabrication plants in Ohio, saying it is taking a prudent approach to the $28 billion project. Intel has also delayed projects in Germany, Poland and Malaysia.