President Donald Trump announced Friday he was raising tariffs on European cars to 25%, citing the European Union’s noncompliance with the U.S.-EU trade deal. 

“I am pleased to announce that, based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States. The Tariff will be increased to 25%,” Trump wrote in a Friday morning Truth Social post.

He did, however, indicate that he would drop the tariffs if European companies agreed to manufacture their cars in the U.S.

“It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF,” Trump also wrote. 

FEDEX, UPS PLEDGE TO REFUND CUSTOMERS AFTER SUPREME COURT TARIFF DECISION

President Donald Trump speaks to the press before departing the White House for Florida on May 1, 2026, in Washington, D.C. (Celal Gunes/Anadolu via Getty Images / Getty Images)

He reiterated the point while speaking to reporters at the White House on Friday.

STICKER SHOCK: WHY US CARS ARE FROZEN OUT OF THE EUROPEAN MARKET

“We raised the tariffs on cars coming in from the European Union because the European Union was not adhering to the trade deal we have. So based on that now, when they build their plants on which they’re spending over $100 billion for countries, not just the Union, but when those plants open, there won’t be any tariffs,” Trump told reporters.

Cars are loaded onto the car carrier ship Polaris Liberty at the automotive terminal on Aug. 11, 2025, in Bremerhaven, Germany. The U.S. will apply a 25 percent tariff to all European vehicles, U.S. President Donald Trump announced May 1, 2026.  (Focke Strangmann/Getty Images / Getty Images)

He also touted ongoing U.S. manufacturing of car plants.

“We have right now in the United States over $100 billion of car plants being built. That’s a record. We’ve never had anything like it, from all countries, Japan, South Korea, every, by the way, Canada, Mexico, they’re all building plants in the United States. But the European Union was not adhering to the deal that we made,” Trump said.

President Donald Trump walks with Executive chair of Ford Motor Company Bill Ford Jr. and CEO of Ford Motor Company Jim Farley as they tour the Ford River Rouge Complex on Jan. 13, 2026, in Dearborn, Michigan. (Getty Images / Getty Images)

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The U.S. and EU reached a landmark trade deal in July that saw the President agree to lower tariff rates on EU cars and trucks from its previous 27.5% to 15%.

By its most generic description, the 2x Bitcoin Strategy ETF (BITX) is a leveraged product that tries to give you twice the daily price action of Bitcoin (BTC-USD). Chasing the price of Bitcoin in a leveraged way for more than a day can lead to a complete loss of your investment, so that’s the first thing you need to know about this and other leveraged ETFs.

Inside BITX

Incepted by Volatility Shares on June 27, 2023, BITX is not a Bitcoin holder, so there’s no direct or indirect exposure as such. The exposure comes from futures contracts on Bitcoin. Using cash, treasuries, repo agreements, etc. for collateral, the fund buys monthly rolling contracts that are one and two months out, and these contracts are rolled over before expiration.

To illustrate this, this is what their annual report showed as of February 28, 2026.

Since it’s now May at the time of writing, these contracts would have been rolled over to April and May, then May and June, and eventually to June and July futures later this month when July contracts are available. Let’s see how that’s going.

What’s happening here is that the Bitcoin futures contract values show us where the market thinks the Bitcoin USD (BTC-USD) price will go over whatever period the contracts cover. When the market is bullish, longer-expiration contracts are more expensive, like in the screenshot above. Because of that, rolling over to the next month’s contracts is a net loss exercise for the ETF. The bet they’re making is that BTC prices will rise by the time they sell the older-month contracts so the net loss can be rolled over into a net gain position.

There’s a problem associated with this approach. Since the ETF is on the buy side of these contracts, these oscillations between net gain and net loss are amplified 2x and can lead to volatility drag. Here’s the example the fund gives in its prospectus.

…if Bitcoin futures were to rise 10% on day one, fall 5% on day two, and then rise 7% on day three, the expected leveraged performance of a fund like BITX over the three days would be = 1.2 * 0.9 * 1.14 = 1.23, or 23%, while the simple sum of the leveraged daily returns +20% – 10% +14% = 24%. This 1% lag is due to volatility drag.

That’s the cost long-term holders of BITX are paying on top of the 2.38% ER. Why would anyone do that? The answer is the potential upside during bitcoin bull cycles, because the ETF also does this.

…if Bitcoin futures were to rise 20% a day for three consecutive days, then BITX’s expected performance could be calculated as = 1.4 *1.4 * 1.4 = 2.74, or an impressive 174% increase over three days – a whopping 54% more than the simple sum of the three 40% returns (40% + 40% + 40% = 120%).

If you’re looking at this from a risk-reward angle, it looks like a no-brainer, but it’s not. Be careful here. This is just the gain/loss on the derivatives amplifying the movement of Bitcoin, and looking at just a couple of examples doesn’t give us the higher-level perspective.

The bigger risk that overshadows the derivatives risk is Bitcoin’s market value. As an extremely volatile and news-sensitive asset, even holding bitcoin alone can lead to sleepless nights. Imagine doubling that trouble, and what you get is BITX.

On the bright side, when bitcoin rallies, holding BITX can give you those tasty leveraged returns. For a moment, forget about the one-day-only warning of the ETF and imagine you held BITX from the time of inception until now.

If you ignore the fact that BTC’s price movements since 2023 (June 27), when BITX was launched, make the S&P look like the kiddie ride in your neighborhood park, you’ll probably also see that BITX hasn’t given any hint of 2x leverage other than during the bull run divergences. Actually, the opposite is true—the divergence is caused by the leverage. This is where the real money is to be made if you’re looking at an investment horizon of longer than a day.

Then there’s the other side of the coin. I’m sure you haven’t missed the fact that your capital could be wiped out even more quickly. This isn’t an ETF where you accrue your wins and losses. It’s a daily reset. It’s aggressive. It’s potentially very rewarding, but it’s as risky as it is attractive.

Who Should Consider Using BITX?

I used the word “Using” and not “Holding” here on purpose, and the SEC warns investors about leveraged ETFs because of the volatility decay. That’s what you’re seeing in that screenshot two paragraphs ago. That entire period is volatility decay in action, and it should be obvious that the gains made during multiple and separate bull runs were almost zeroed out, leaving the investor with returns that were even less than the S&P500’s.

BITX can be handy for certain investors:

1. Price capture enthusiasts: Those who like participating in the price of Bitcoin during longer rallies periodically can be quite advantageous when coupled with leverage.
2. Those who opt out of Bitcoin (non-adopters) but want to benefit from its price action: investors who don’t want to hold Bitcoin but are keen on participating in rallies.
3. Portfolio diversifiers: those who need diversification and are willing to pay the risk premium but don’t really want to own any actual crypto assets.

If this looks interesting, you need to do your due diligence about your entry and exit points.

One last thing. Don’t be taken in by the sky-high distributions. Over the past three years, the ETF has paid out strong monthly dividends, but as of 2026, it’s run out of steam, and the monthly payout is now a paltry 1.5 cents a share.

Unless you have a strong conviction that there’s another bitcoin rally on the horizon, it doesn’t look like you can depend on the high yield to resume anytime soon. That’s still not too bad if you think BTC is prepping for another bull run.

Using current context to illustrate potential use cases, the 10-day SMA has crossed over the 50-day SMA, but there’s still not enough momentum to force a turnaround in the 200-day SMA. It could go either way, and the RSI bears that out. There’s been an increase since the February low, but it’s been very cautious, hence the lack of momentum. It could have more room to run, but the best entry points for BITX are the ones where it bounces off 30 or under. Once it approaches 70, that’s a warning sign to sell.

As a final thought, I’d recommend thoroughly researching the leverage concept and how technical indicators can show you the best entry and exit points. From an academic perspective, I hope the article has given you at least some of what you came for. Thanks for reading!

This article answers three questions about BITX:

1. How does BITX reflect the price of Bitcoin?
2. What risks are involved in using BITX?
3. Which investors is BITX appropriate for?

Editor’s note: This article is intended to provide a general overview of the ETF for educational purposes only and, unlike other articles on Seeking Alpha, does not offer an investment opinion about the ETF.

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

MOUNTAIN VIEW, Calif. — Alphabet Inc. shares edged lower in midday trading Friday, trading around $384 after the tech giant delivered robust first-quarter results that underscored its dominance in search advertising and accelerating growth in artificial intelligence-powered cloud services. The modest decline of roughly 0.13 percent came amid broader market fluctuations as investors digested strong earnings against ongoing antitrust scrutiny.

Alphabet reported consolidated revenue of $109.9 billion for the quarter ended March 31, a 22 percent increase from the prior year and beating Wall Street expectations. The performance marked the company’s 11th consecutive quarter of double-digit growth, driven largely by Google Search and YouTube advertising alongside surging demand for Google Cloud infrastructure. Operating income rose 30 percent to $39.7 billion, with margins expanding to 36.1 percent, reflecting operational discipline amid heavy AI investments.

Net income jumped 81 percent to $62.6 billion, translating to earnings per share of $5.11 — a significant beat over analyst forecasts. Chief Executive Sundar Pichai highlighted AI’s pervasive impact, stating it is “lighting up every part of the business.” Google Cloud revenue climbed 63 percent year-over-year, fueled by Gemini AI tools and enterprise adoption, while Search revenue grew 19 percent despite competitive pressures from generative AI chatbots.

The results sent shares higher in after-hours trading Wednesday before Friday’s slight pullback. Analysts praised the “full-stack” AI strategy integrating hardware, software and services, positioning Alphabet to capitalize on the next wave of technological transformation. Capital expenditures rose sharply as the company ramps data center capacity for AI training and inference, with guidance signaling further increases into 2027.

Yet regulatory clouds loom large. European Union authorities continue probing Alphabet under the Digital Markets Act, recently providing guidance on opening services to rivals including AI developers. In the United States, the Department of Justice seeks structural remedies following monopoly findings in search and ad tech markets, potentially forcing changes to default agreements and data practices that could reshape Google’s core business. Brazil’s antitrust authority has also deepened its review of journalistic content practices.

These legal battles represent both risk and distraction as Alphabet invests tens of billions in AI infrastructure. Pichai and other executives have emphasized compliance while advocating for innovation-friendly regulation. The company maintains strong cash flow and a fortress balance sheet to weather potential fines or remedies, but prolonged uncertainty could pressure margins or force business model adjustments.

Alphabet’s advertising ecosystem remains resilient despite economic headwinds and AI disruption fears. YouTube Shorts and performance advertising products delivered robust growth, while the company’s focus on responsible AI deployment helps differentiate Gemini from competitors. Enterprise customers increasingly choose Google Cloud for its security, scalability and integrated AI capabilities, contributing to backlog expansion.

Dividend news provided another positive signal. The board approved a 5 percent increase to the quarterly payout, now $0.22 per share, reflecting confidence in sustained cash generation. Share repurchases continue as part of a disciplined capital return program, supporting shareholder value amid volatility.

Wall Street reactions were largely bullish. Several firms raised price targets, citing AI momentum and cloud acceleration as reasons for optimism. Consensus forecasts project continued double-digit revenue growth through 2026, with cloud margins expanding as scale efficiencies materialize. However, elevated capital spending — potentially reaching $190 billion this year — will test near-term profitability even as long-term positioning strengthens.

Competitive dynamics in AI remain fluid. OpenAI, Anthropic and Microsoft partnerships influence the landscape, yet Alphabet’s vast data assets, distribution reach through Android and Search, and hardware efforts like custom TPUs provide distinct advantages. Gemini’s multimodal capabilities and integration across products position it well for consumer and enterprise use cases.

Broader market context shows Big Tech navigating similar themes — innovation versus regulation, growth versus profitability. Alphabet’s results compare favorably to peers, with cloud growth outpacing many rivals and advertising holding steady. The modest Friday dip may reflect profit-taking or rotation rather than fundamental concerns following the earnings beat.

Looking ahead, investors will monitor AI monetization progress, regulatory developments and macroeconomic impacts on advertising spend. Alphabet’s diversified portfolio — from Waymo autonomous vehicles to Pixel devices and subscription services — provides multiple growth vectors beyond core search. Executives express confidence that AI investments will yield substantial returns over time.

For retail investors, Alphabet remains a cornerstone holding in tech portfolios, offering exposure to search dominance, cloud computing and emerging AI opportunities. The company’s scale, brand strength and engineering talent underpin long-term optimism despite short-term volatility from legal and spending pressures.

As the second quarter unfolds, focus shifts to product launches, partnership announcements and further regulatory clarity. Alphabet’s ability to balance aggressive AI investment with financial discipline will determine whether the current momentum sustains through 2026 and beyond. Friday’s trading action, while slightly negative, does little to dim the overall positive narrative emerging from the earnings report.

Its head of consumer protection policy Sue Davies said: “It is deeply concerning that another children’s craft product, particularly from a major brand like Crayola, which is sold by big-name retailers, has been recalled due to potential asbestos contamination, continuing a worrying trend of recalls involving this deadly substance.

Companies announcing new appointments include Northern Powergrid, Richard Reed Solicitors, RMT Accountants & Business Advisor, CMP Products, RWO and Robson Laidler Wealth

RMT Accountants & Business Advisors has brought two further senior recruits into its audit team as it continues to invest in meeting growing client demand. Joe Mackie-Walsh has joined the Gosforth-based firm’s audit team as an associate director, with Becky Barker taking up the role of audit manager.

Originally from Darlington, Mr Mackie-Walsh moved to the London office of one of the UK’s Big Four firms after graduating from Newcastle University before deciding to return to the North East. He brings over a decade of experience across a broad range of sectors, gained at leading North East professional services firms and private businesses.

Ms Barker also began her career in London after graduating from Durham University and has over eight years’ audit experience gained in practices in the capital and back in the North East.

Paul Gainford, director of commercial services at RMT Accountants & Business Advisors, added: “We’ve seen a surge in new business wins over recent months from a wide range of clients, and we’ve been building our audit team to ensure the support and advice they need is on hand.

“Joe and Becky are excellent additions to this team, with both the personal and professional qualities that will help them thrive at RMT, and we’re expecting to see further new recruits joining us in the coming months.”

Northern Powergrid has made two senior leadership appointments to strengthen its regional operations. Paul McGinlay, who has joined the executive team as director of regional operations, has more than 20 years of senior leadership experience from the telecoms sector, having led large-scale, field engineering and operational teams across Scotland and the North of England.

As director of operations for the North of England at Openreach, he led a team of around 3,500 engineers overseeing regional operations and service delivery. He now leads Northern Powergrid’s regional operations directorate, the company’s largest, comprising around 1,800 colleagues across the North East and Yorkshire.

Meanwhile Brad Jobson has been appointed general manager for Northumberland, County Durham and Tyne and Wear. He has spent almost three years at Northern Powergrid and most recently held the role of commercial manager for the company’s energy flexibility offering, where he played a key role in supporting the transition to a smarter, more flexible electricity network.

In his new role, Brad will be responsible for regional operational performance, safety leadership and delivering business plans across the North East.

Newcastle engineers RWO has strengthened its geoenvironmental and ground engineering operations with two appointments. Neil Jones has extended his contract with the Seaton Burn company as geoenvironmental services associate director, having joined two years ago following a short period of retirement,

With more than 40 years of experience and expertise, Mr Jones will continue to be responsible for the design and preparation of geotechnical design solutions for clients who include national housebuilders and developers, as well as staff development and training, reviewing reports and ensuring technical compliance.

The company also welcomes Spencer Ollivier, who joins the geoenvironmental team as an experienced geotechnical engineer. His role will include geohazard assessments, desk studies, site walk overs, planning, supervising and reporting on ground investigations and the preparation of specifications and reports.

Department head and director Chris Rudd said: “It’s great to have Spencer onboard and extend Neil’s time with us. Both are assets to the business as we move forward and invaluable members of the RWO team.”

Sunderland based Richard Reed Solicitors has announced expansion of its conveyancing department. The team, led by Nicola Bennell, director and solicitor, has promoted Steven Douglas to associate solicitor, and welcomed Kathryn Musgrove as solicitor. Savannah Beckett and Hannah Cullen have also recently joined the team.

Additional support has been provided through the recruitment of paralegals Lynn Liddle and Lucy Cardy. Other strategic appointments include Matthew Lockey, who has been promoted to head of private family law, having joined the firm in May 2023. In addition, Helena Dar has joined as solicitor in the wills, trusts & probate team.

Sarah Reid, managing director, Richard Reed said: “We are delighted to welcome a number of new colleagues to the firm and to recognise the achievements of our newly promoted team members, Matthew and Steven. This period of growth is a testament to the hard work of our people and the trust our clients place in us. As we continue to expand, our focus remains on delivering a personal, high-quality service across all areas of the business.

“We believe our people are our greatest asset, and we are committed to investing in our people at every stage of their careers. We remain dedicated to creating an environment where talent is nurtured, and success is shared.”

CMP Products has appointed a new chief operating officer to drive productivity and sustainable growth across the division. Demos Hoursoglou brings extensive senior leadership experience across a range of engineering and manufacturing environments, with a strong track record of delivering operational transformation programmes.

His priorities will include enhancing operational efficiency, strengthening safety standards and investing in people development across the organisation. Mr Hoursoglou joins CMP from RLC Aerospace Limited, where he’d worked as director of operations for over a year. Prior to that he’d worked for Jaguar Land Rover and Honda UK.

He said: “I’m delighted to be joining CMP at such an important stage in its growth journey. Throughout my career, I’ve been passionate about improving operational performance, driving efficiency and building strong, engaged teams. CMP’s clear commitment to sustainable growth and continuous improvement makes this an exciting opportunity. I look forward to working closely with colleagues across the business to strengthen operations, enhance collaboration and ensure we deliver consistently against our long‑term ambitions.”

Mr Hoursoglou’s appointment follows the announcement that chief operating officer, Steve Holt, will retire at the end of May after nearly 38 years with the business.

Newcastle wealth management firm Robson Laidler Wealth has appointed Hannah Witty as a chartered financial planner and associate director. Ms Witty, originally from West Sussex, brings more than 15 years of financial advice experience to the firm and will play a key role in supporting growth while enhancing the service for new and existing clients.

She was previously a financial adviser at Wades Financial Services, recently acquired by Foster Denovo, and began her career at Three Counties, where she gained her professional qualifications.

Directors of RL Wealth Neil and Amanda Cowie, who have known Ms Witty professionally for many years, are pleased to welcome her into their team.

The mum-of-three is passionate about driving change and empowerment of women in the financial services sector with recent industry data from the Financial Conduct Authority showing that only 15 to 17% of financial advisers are female.

She said: “I’m excited to be joining Robson Laidler Wealth at such an important time in its journey. I’ve always admired the firm’s independent, family-led approach and its dedication to putting clients first. I look forward to contributing to the team and supporting clients in achieving their financial goals. I’m proud to be stepping into a senior role and helping to model what’s possible for high-performing women in financial services.”