Business
After Trump’s Tariffs Pause, the EU Takes a Moment to Reassess
 
																								
												
												
											European Union officials had just approved retaliatory levies of 10 to 25 percent on about $23 billion of American imports when President Trump abruptly changed tack on Wednesday, announcing that he would hit pause on some of the tariffs he had placed on Europe and much of the rest of the world.
Mr. Trump’s announcement signaled what European leaders had been hoping for: a willingness to negotiate. Financial markets surged on the news, greeting it as evidence that an all-out trade war might be averted.
But European leaders on Thursday morning were taking time to assess exactly what the announcement meant and how they should respond.
The Trump administration is pausing what it has called “reciprocal” tariffs — across-the board taxes that apply in different amounts to different countries — that Mr. Trump announced on April 2. At that time, he said the European Union would face a 20 percent tariff. With his about-face on Wednesday, it is likely that the bloc would instead face a 10 percent across-the-board tariff for the next 90 days, during the pause.
But the 25 percent tariffs that Mr. Trump has placed on both cars and on steel and aluminum seemed to be still in place — and Europe’s retaliation, approved on Wednesday, was in response to those metal-sector tariffs, not to the tariffs that Mr. Trump has now delayed. European Union officials have yet to announce whether that retaliation would go ahead.
Officials “will now take the necessary time to assess this latest development, in close consultation with our member states and industry, before deciding on next steps,” Olof Gill, a spokesman for the European Commission, the bloc’s executive arm, told reporters in a written statement on Thursday.
Still, White House officials voiced optimism that Europe’s retaliatory levies, which were meant to phase in starting April 15, would now be delayed.
“I think what’s going to happen is they are going to be pushed out for the 90 days, so they have time to negotiate with the president without having something hanging over their head,” Howard Lutnick, the U.S. commerce secretary, told reporters at the White House on Wednesday.
Donald Tusk, prime minister of Poland, wrote on social media, “Let’s make the best of the next 90 days.”
Ursula von der Leyen, president of the European Commission, said in a statement on Thursday that she welcomed Mr. Trump’s delay and wanted to negotiate.
She called the announcement “an important step towards stabilizing the global economy.”
Ms. von der Leyen has in recent days suggested repeatedly that both Europe and the U.S. should drop tariffs on industrial products, including cars, to zero.
“Tariffs are taxes that only hurt businesses and consumers,” she said. “That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States.”
But she also underscored that Europe would continue its strategies of striking new trade alliances, deepening internal trade between nations and working on improving its own competitiveness, measures meant to make it less reliant on an increasingly fickle United States.
“This crisis has made one thing clear,” she wrote. “In times of uncertainty, the single market is our anchor of stability and resilience.”
 
																	
																															Business
Universal Music Group settles with AI music startup Udio
 
														
Universal Music Group said Wednesday it has reached licensing agreements with artificial intelligence music startup Udio, settling a lawsuit that had accused Udio of using copyrighted music to train its AI.
Millions of users create music using Udio’s AI, which can compose original songs — including voices and instruments — from text prompts.
Udio has agreed with UMG to launch a new platform next year that is only trained on “authorized and licensed music,” and will let users customize, stream and share music.
“These new agreements with Udio demonstrate our commitment to do what’s right by our artists and songwriters, whether that means embracing new technologies, developing new business models, diversifying revenue streams or beyond,” Lucian Grainge, UMG’s chairman and chief executive, said in a statement.
Udio declined to disclose the financial terms of the settlement and licensing agreements. UMG did not immediately return a request for comment on the terms.
Artificial intelligence has brought new opportunities as well as challenges to the entertainment industry, as AI startups have been training their models on information on the internet, which entertainment companies say infringes on their copyrighted work.
In the music industry, music businesses have accused New York City-based Udio and other AI music startups of training on copyrighted music to generate new songs that are based on popular hits without compensation or permission.
UMG, Sony Music Entertainment, Warner Music Group and other music businesses sued Udio last year. In the lawsuit, Udio was accused of using hits like The Temptations’ “My Girl,” to create a similar melody called “Sunshine Melody.” UMG owns the copyright to “My Girl.”
“A comparison of one section of the Udio-generated file and ‘My Girl’ reflects a number of similarities, including a very similar melody, the same chords, and very similar backing vocals,” according to the lawsuit. “These similarities are further reflected in the side-by-side transcriptions of the musical scores for the Udio file and the original recording.”
Udio said on its website at the time that it stands by its technology and that its AI model learns from examples, similar to how students listen to music and study scores.
“The goal of model training is to develop an understanding of musical ideas — the basic building blocks of musical expression that are owned by no one,” Udio had said in a statement. “We are completely uninterested in reproducing content in our training set.”
On Wednesday, Udio’s CEO and co-founder, Andrew Sanchez, said he was thrilled at the opportunity to work with UMG “to redefine how AI empowers artists and fans.”
The collaboration is the first music licensing agreement that Udio has reached with a major music label.
“This moment brings to life everything we’ve been building toward — uniting AI and the music industry in a way that truly champions artists,” Sanchez said in a statement. “Together, we’re building the technological and business landscape that will fundamentally expand what’s possible in music creation and engagement.”
Udio said that artists can opt in to the new platform and will be compensated, but declined to go into the specifics or the artists involved.
Udio, launched in 2024, was co-founded by former Google DeepMind employees. Udio’s backers include music artist will.i.am, Instagram co-founder and Anthropic’s chief product officer Mike Krieger and venture capital firm Andreessen Horowitz.
Udio has had 128,000 app downloads in Apple’s App Store since it launched, according to estimates from New York-based mobile analytics firm Appfigures.
On Thursday, UMG also announced a partnership with London-based Stability AI to develop music creation tools powered by AI for artists, producers and songwriters.
Business
Disneyland Resort lays off 100 people in Anaheim
Disneyland Resort has laid off about 100 people in Anaheim, as Walt Disney Co. becomes the latest media and entertainment company to cut jobs.
The layoffs occurred Tuesday and came from multiple teams, Disney confirmed.
“With our business in a period of steady, sustained operation, we are recalibrating our organization to ensure we continue to deliver exceptional experiences for our guests, while positioning Disneyland Resort for the future,” a Disneyland spokesperson said in a statement. “As part of this, we’ve made the difficult decision to eliminate a limited number of salaried positions.”
Disney attributed the cuts to an increase in hiring after the parks reopened once the COVID-19 pandemic waned.
Disney’s theme parks are a major economic engine for the Burbank media and entertainment giant.
Last year, the company’s experiences division — which includes its theme parks, cruise line and Aulani resort and spa in Hawaii — brought in nearly 60% of Disney’s operating income.
Earlier this month, the company announced price hikes on most of its single-day, one-park tickets.
The Disneyland Resort layoffs come as entertainment and tech companies have recently shed thousands of jobs.
On Wednesday, Paramount laid off 1,000 employees in a first round of cuts after the company’s takeover by tech scion David Ellison’s Skydance Media. Amazon, Meta, Charter Corp. and NBC News also have announced cuts.
Business
News Analysis: Trade deal or trade truce? Questions remain as Trump meets with China’s Xi
 
														WASHINGTON — President Trump faces the most important international meeting of his second term so far on Thursday: face-to-face negotiations with Xi Jinping, who has made China a formidable economic and military challenger to the United States.
The two presidents face a vast agenda during their meeting in Seoul, beginning with the two countries’ escalating trade war over tariffs and high-tech exports. The list also includes U.S. demands for a Chinese crackdown on fentanyl, China’s aid to Russia in its war with Ukraine, the future of Taiwan and China’s growing nuclear arsenal.
Trump has already promised, characteristically, that the meeting will be a major success.
“It’s going to be fantastic for both countries, and it’s going to be fantastic for the entire world,” he said last week.
But it isn’t yet clear that the summit’s concrete results will measure up to that high standard.
Treasury Secretary Scott Bessent said Sunday that the two sides have agreed to a “framework” under which China would delay implementing tight controls on rare earth elements, minerals crucial for the production of high-tech products from smartphones and electric vehicles to military aircraft and missiles. He said China has also agreed to resume buying soybeans from U.S. farmers and to crack down on fentanyl components.
In return, Bessent said, the United States will back down from its stinging tariffs on Chinese goods.
Nicholas Burns, the U.S. ambassador in Beijing under then-President Biden, said that kind of deal would amount to “an uneasy trade truce rather than a comprehensive trade deal.”
“That may be the best we can expect,” he said in an interview Monday. Still, he added, “it will be a positive step to stabilize world markets and allow the continuation of U.S.-China trade for the time being.”
But U.S. and Chinese officials have been close-mouthed on what, if anything, has been agreed on regarding Xi’s other big trade demand: easier U.S. restrictions on high-tech exports to China, especially advanced semiconductor chips used for artificial intelligence.
Burns said the two superpowers’ technology competition is “the most sensitive … in terms of where this relationship will head, which country will emerge more powerful.”
Giving China easy access to advanced semiconductors “would only help [the Chinese army] in its competition with the U.S. military for power in the Indo-Pacific,” he warned.
Other former officials and China hawks outside the administration have said, even more pointedly, that they worry that Trump may be too willing to trade long-term technology assets for short-term trade deals.
In August, Trump eased export controls to allow Nvidia, the world leader in AI chips, to sell more semiconductors to China — in an unusual deal under which the U.S. company would pay 15% of its revenue from the sales to the U.S. Treasury.
Matthew Pottinger, Trump’s top China advisor in his first term, protested in a recent podcast interview that the deal risked trading a strategic technology advantage “for $20 billion and Nvidia’s bottom line.”
Underlying the controversy over technology, some China watchers warn, is a basic mismatch between the two presidents: Trump is focused almost entirely on trade and commercial deals, while Xi is focused on displacing the United States as the biggest economic and military power in Asia.
“I don’t think the administration has a strategy toward China,” said Bonnie Glaser, a China expert at the German Marshall Fund of the United States. “It has a trade strategy, not a China strategy.”
“The administration does not seem to be focused on competition with China,” said Jonathan Czin, a former CIA analyst now at Washington’s Brookings Institution. “It’s focused on deal making. … It’s tactics without strategy.”
“We’ve fallen into a kind of trade and technology myopia,” he added. “We’re not talking about issues like China’s coercion [of smaller countries] in the South China Sea. … China doesn’t want to have that bigger, broader conversation.”
It isn’t clear that Trump and Xi will have either the time or inclination to talk in detail about anything other than trade.
And even on the front-burner economic issues, this week’s ceasefire is unlikely to produce a permanent peace.
“As with all such agreements, the devil will be in the details,” Burns, the former ambassador, said. “The two countries will remain fierce trade rivals. Expect friction ahead and further trade duels well into 2026.”
“Buckle up,” Czin said. “There are likely more sudden moves from Beijing ahead.”
In the long run, Trump’s legacy in U.S.-China relations will rest not only on trade deals but on the larger competition for economic and military power in the Pacific Rim. No matter how this week’s meetings go, those challenges still lie ahead.
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