President Trump threatened to impose "a substantial tariff" on the European Union over the bloc's penalties against U.S. technology companies, just hours after his replacement tariffs on 60 global trading partners went into effect this morning.

• "The United States of America is not a 'PIGGYBANK' for Europe, nor will we allow it to be," Trump posted on Truth Social today.

Catch up quick: The European Commission fined Google $1 billion this week under the bloc's Digital Markets Act, saying the company unfairly favored its own services and restricted app developers.

• The Google fine is part of a broader EU crackdown on Big Tech. Brussels also fined Apple and Meta last year, accusing the companies of abusing market power.
• The Trump administration argues the bloc's digital rules unfairly target America's biggest technology firms.

What's next: Trump said he will launch a Section 301 trade investigation.

• 🗣️ "The European Union will pay a very big price for this illegal and highly unethical conduct. ... The penalties will be entirely reversed and, we anticipate, a substantial TARIFF to be placed on them at the earliest possible moment," Trump said.

Friction point: If tariffs do materialize, the Trump-negotiated U.S.-EU trade deal will be at risk. For their part, EU officials have previously insisted that any new tariffs would breach the trade deal.

The bottom line: Disputes over digital regulation are spilling over into trade policy, adding another source of uncertainty to one of the world's largest economic relationships.

Go deeper: Tariff revenue's $825B gap

"Those concerns should be addressed through targeted legal and commercial frameworks rather than sweeping restrictions on techniques that play an important role in AI innovation."

Between the lines: Beijing-based Moonshot AI's release of its Kimi K3 model last week has triggered the most intense bout of AI panic since DeepSeek rattled financial markets in January 2025.

• The letter posted today urges policymakers to avoid "premature restrictions" on open-weight AI models, warning it could stifle competition or drive innovation overseas, Axios' Pete Gannon writes.

Go deeper: Nvidia CEO Jensen Huang, who posted the letter on his new X account today, told Axios' Mike Allen earlier this week that he believes America has nothing to fear from China's open-source AI models — and everything to fear from the growing campaign to ban them.

Watch the interview.

💳 American Express cardholders are spending more, but American Express is spending more. Investors no doubt liked the former, but seemed to dislike the latter even more, as shares dropped 4.3%. (Bloomberg)

🚙 GM is investing $157 million to upgrade a St. Louis-area truck plant. (Detroit News)

LeBron James is coming to Philadelphia, Pete writes.

• The 41-year-old, four-time NBA champ announced his decision on X, saying he gave serious thought to retirement before deciding he had "more to give."

💸 Follow the money: Or don't. James said it wasn't part of his decision.

• The 76ers will pay him $8 million over two years with a player option, per ESPN.
• For context, LeBron's already made over $580 million in career earnings just from his playing contracts with Cleveland, Miami, Cleveland again, and LA, according to Spotrac.

🗣️ What he's saying: James said he believes he can make the Sixers a championship team, something the franchise hasn't been since 1983.

• The intrigue: He also said he was "so excited to energize a new fan base."

💭 Pete's thought bubble: Perhaps James saw a fanbase sorely in need of energizing, after Knicks fans routinely took over the Sixers' arena in big games, giving it the label "Madison Square Garden South." (Editor's note: Nathan did not approve this pro-Knicks message.) 🏆