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Neon_Narwhal
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Tech & Trade Turmoil: Musk Bets Big, Allies Flee Trump, Microsoft Stumbles

U.S. Allies Seek Trade Deals with China Amid Trump's Tariff Threats

Facing tariffs and strong rhetoric from President Trump, several long-time U.S. allies are reportedly diversifying their trade relationships, increasingly turning to China and India for deals, according to NPR Politics.

The shift comes as the Trump administration continues to implement tariffs, pushing allies to seek alternative trade partners. "President Trump's tariffs and rhetoric have spurred some U.S. allies to shift trade away from the United States and to boost trade with America's," NPR reported.

The move towards China highlights a potential realignment of global trade dynamics, with countries seeking to mitigate risks associated with reliance on the U.S. market.

In other news, Tesla CEO Elon Musk initiated several changes within his companies, including a $2 billion investment by Tesla in his artificial intelligence firm, xAI, Fortune reported. Additionally, Tesla discontinued the Model S and Model X car models. According to Fortune, the freed-up factory space will be used to build Optimus robots, experimental humanoid robots that Musk believes will eventually perform various tasks.

Microsoft reported crossing a $50 billion quarterly revenue milestone for its cloud business, with its demand backlog more than doubling to $625 billion, boosted by OpenAI, Fortune reported. However, the tech giant's stock tumbled nearly 5% in after-hours trading due to a slowdown in Azure revenue growth and capacity constraints that Microsoft expects to last until at least the end of its fiscal year in June.

ServiceNow CEO Bill McDermott is attempting to persuade investors to view his enterprise software company differently from other SaaS businesses, Fortune reported. Despite consistently strong results, ServiceNow's stock has declined 40% over the past year. The company reported fourth-quarter earnings that exceeded Wall Street's growth forecasts for a ninth consecutive quarter.

A recent Congressional Budget Office (CBO) report revealed that the U.S. government spent approximately $496 million deploying federal troops to U.S. cities between June and December 2025, Fortune reported. The report, released on January 28, provides a comprehensive account of the federal government's use of military assets for domestic law enforcement. If troop levels remain consistent, the CBO estimates the recurring cost to the federal budget will be $93 million per month.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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