Volatility gripped stocks ahead of President Donald Trump’s tariff rollout that is poised to shake-up global trade. Following a slide that topped 1%, the S&P 500 wiped out losses amid a solid reading on factory goods orders. 

Trump’s deliberations over plans to impose reciprocal tariffs are coming down to the wire, with his team said still to be finalizing the level and scope of new import taxes slated to be unveiled later today. 

The European Union is preparing a package of potential emergency measures to support parts of its economy that could be hit the hardest. The EU’s executive arm is working on proposals to bolster short-term economic support, alongside reforms to advance the bloc’s competitiveness in key sectors of its single market, people familiar with the talks told us. — Jennifer Duggan

What You Need to Know Today

Tesla’s vehicle sales fell 13% in the first quarter, dragged down by the changeover of its most important model and international backlash against Elon Musk. The automaker said today it delivered 336,681 vehicles in the first three months of the year, the lowest since the second quarter of 2022. Analysts on average were expecting the company to sell more than 390,000 cars and trucks, based on estimates compiled by Bloomberg. 

Greece will boost its defense spending to €25 billion ($27 billion) on military equipment over the next 12 years, as the government seeks to reinforce its armed forces and boost domestic industry. The new long-term plan is the first of its kind for the country and comes as nations across Europe are seeking to ramp up military spending in the face of Russia’s continued aggression in Ukraine and a pullback of US security on the continent. 

Jordan Bardella, the young and charismatic president of the far right National Rally, may be well-placed to unify the French right. He’s signaled readiness to pick up the baton after a court barred far-right leader Marine Le Pen from running in the 2027 election. But with Le Pen’s appeal due to be decided next summer, Bardella must walk a fine line between supporting his mentor and preparing his own candidacy for the top job in French politics. 

China took steps to restrict local companies from investing in the US, in a move that could give Beijing more leverage in potential trade negotiations with the Trump administration, people familiar with the decision told us. Several branches of China’s top economic planning agency, the National Development and Reform Commission, have been instructed in recent weeks to hold off on registration and approval for firms that are looking to invest in the US. The new measures underscore tensions playing out between the world’s two biggest economies. 

Israel is expanding military operations in Gaza, days after ordering people in southern parts of the Palestinian territory to leave in preparation for more intense conflict with Hamas. Defense Minister Israel Katz said troops will broaden ground incursions and that land seized by Israel in Gaza will be turned into buffer zones. Residents in and around Rafah, the main town in the south, reported heavy air strikes the same day.

Nintendo will release its new Switch 2 console on June 5, seeking to keep the No. 1 spot in video-game devices with a new version of the top-selling model it introduced in 2017. The new product will start at $450 in the US, the company said, an increase from the $300 the company charged for the original Switch. Nintendo revealed details of the machine during an hour-long livestream and announced several new games, including Mario Kart World, a new entry in the popular Mario Kart series. 

Zimbabwe’s President Emmerson Mnangagwa has repeatedly insisted that he’ll retire when his second term comes to an end in 2028. Nonetheless, speculation continues to swirl that he could seek to extend his tenure beyond this constitutional limit. This is setting the stage for a potential power struggle if he refuses to pass on the presidential baton.

Emmerson Mnangagwa, Zimbabwe's president. Photographer: Hollie Adams/Bloomberg

What You’ll Need to Know Tomorrow

For Your Commute

For years, NASA hailed its Artemis program’s mission to land the first woman on the surface of the moon. Then, it said it would land the first person of color. But in recent weeks, the space agency dropped references to those aspirations on its website. The change was a big blow to many who have long-awaited the ranks of those in space to better reflect the rest of us down here on Earth.

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