Cuba on the Brink; Tariff Refund Fight After Court Ruling - What You Need to Know

[0:05] This is what you need to know. [0:07] A new lawsuit is now testing whether retailers must pay customers back for tariff-related price hikes [0:13] after the Supreme Court moved to end parts of President Trump's import taxes. [0:18] A rare look inside Cuba shows growing economic strain [0:21] as residents navigate shortages, rising prices and tightening daily conditions. [0:26] Plus, a sheriff in Louisiana indicted on charges related to a jailbreak last year when 10 inmates escaped. [0:33] The royal visit takes an awkward turn after a major mistake with the British flag at a ceremony. [0:39] And a closer look at the air taxis cutting down a ride that can take an hour or more to just minutes. [0:46] We have much more What You Need to Know. [0:48] I'm James Longman from ABC News and this is What You Need to Know. [0:52] Let's get right to the big story. [0:55] U.S. gas prices have hit a new high with the economic effect of the Iran war deepening. [0:59] They're now at their highest in four years, now averaging more than $4.40 a gallon. [1:05] Diesel prices are also climbing. [1:07] That's especially significant because diesel powers, trucking, shipping and farm equipment, [1:11] meaning higher transport costs are quickly filtering to consumers. [1:15] Elizabeth Schulze has more. [1:17] Hey James, gas prices are rising at a breakneck pace. [1:20] The national average is now above $4.40 a gallon, up 50% since the start of the Iran war. [1:27] In California, we are seeing averages above $6 a gallon. [1:30] Prices are also surging in Great Lakes states like Michigan, Wisconsin and Indiana. [1:34] Plus, diesel is approaching all-time highs in some states. [1:37] That translates into higher costs for everything from shipping to farming to grocery prices. [1:42] Moody's Analytics says all of this adds up to the typical household paying $1,400 extra in gas and diesel over a year [1:49] if oil stays at its current levels. [1:52] And that is already forcing households to make tradeoffs. [1:54] Our new ABC News, Washington Post, Ipsos poll finds 44% of Americans say they cut back on their driving because of higher gas. [2:03] 42% cut other expenses. [2:06] If the Strait of Hormuz stays closed through Memorial Day, Gas Buddy says it's possible we could see prices [2:11] above the all-time high of $5 a gallon on average that we hit back in 2022. [2:16] Meanwhile, a new legal fight is unfolding over tariffs after the Supreme Court ruled parts of the import tax system were unlawful and could be reversed. [2:25] Now, customers say they may have overpaid when those tariffs were built into retail prices. [2:30] A new lawsuit filed by two IKEA shoppers argues the company should refund shoppers for price increases as a result of tariffs that were later ruled illegal. [2:39] The case is part of a broader wave of legal challenges tied to billions in tariff-related costs, now under scrutiny. [2:46] As the Trump administration pushes for regime change in Cuba, direct flights have resumed between the U.S. and Venezuela for the first time in seven years. [2:54] But Cuba is still caught in the middle with a U.S. blockade putting the squeeze on its economy. [2:59] Matt Rivers is in Havana. [3:00] We're here in Havana, Cuba, which is the epicenter of this ongoing geopolitical conflict between Cuba and the United States. [3:07] Here's what we know from the U.S. side. [3:08] We know that the Trump administration wants regime change here in Cuba. [3:12] President Trump has said as much. [3:13] Secretary of State Marco Rubio has said as much. [3:15] They believe that this government is incompetent at best, incredibly corrupt at worst. [3:19] They think they are harming the people of Cuba. [3:21] And most importantly, says the administration, they believe that Cuba remains a national security threat, as most administrations have felt over the last seven decades or so. [3:30] From the Cuban side, the government here remains defiant. [3:33] They say they want negotiations with the United States. [3:35] They have told me here that they want more investment from the United States. [3:38] And yet they're not willing to do the kinds of things that the United States government wants to do, namely that key leaders here in Cuba step down. [3:45] So what does that leave us with? [3:47] An ongoing pressure campaign from the United States for now, just economically, although we know that the military option is not explicitly being taken off the table by the administration. [3:57] A U.S. Special Forces soldier is now at the center of a stunning case after allegedly winning $400,000 betting on the capture of Venezuelan leader Nicolas Maduro. [4:07] Court filings say Gannon Ken Van Dyck used classified information tied to the military operation to place wages on prediction markets before the raid had even unfolded. [4:16] Aaron Katursky was in court this week when he pleaded not guilty. [4:20] The soldier is free now on a $250,000 bond due back in court in June. [4:24] Federal prosecutors said he transferred most of his gains into cryptocurrency and asked Polymarket to delete his account. [4:31] The FBI has carried out nearly two dozen raids in Minnesota as part of a fraud investigation involving social welfare programs. [4:38] The FBI says daycares and facilities working with children with autism were among the locations searched. [4:43] Governor Tim Walz welcomed the raid, saying they were not related to immigration enforcement. [4:48] Federal officials criticized him for failing to address the fraud. [4:51] He's denied, ignoring the issue, saying, [4:53] If you commit fraud in Minnesota, you'll get caught. [4:56] And children's entertainer Rachel Griffin-Acuso, known as Miss Rachel, is calling for the release of an asylum seeker who'd settled in Maine and who is being held in ICE custody. [5:06] Nineteen-year-old Olivia Andre, originally from the Democratic Republic of Congo, is detained at an immigration facility after Border Patrol officials say she and her family entered the U.S. illegally. [5:17] Acuso spoke with Diane Macedo. [5:19] This is my neighbor. I view everyone as my neighbor. [5:22] I was like, this doesn't make any sense. [5:24] It doesn't make sense to hold this caring, wonderful person who wants to be a nurse who's been through so much trauma. [5:30] It's just cruel to hold her there. [5:32] She's a young person, but she's a kid. [5:35] In a statement, the Department of Homeland Security said Andre has a final order of removal and no right to remain in the U.S. [5:41] They add the Andre family has received full due process and the government will continue trying to deport them. [5:47] And here's what to watch. [5:48] From underdog to number one pick, Fernando Mendoza's journey to the top of the NFL draft defied the odds. [5:55] But beyond the helmet, who is the man captivating a nation and changing the game? [5:59] Stream Impact by Nightline, there's something about Fernando. [6:02] And we have much more what you need to know. [6:05] Now to take three, the stories that you'll be talking about this weekend. [6:19] Number three, maybe the robots are taking over. [6:22] An airport in Tokyo shows humanoid robots handling passenger baggage. [6:26] The airline says it's due to staffing shortages and an effort to reduce human labor. [6:31] And in Hong Kong, a robot, Sophia, put on quite a show. [6:35] She performed with a human orchestra for a live audience. [6:48] Number two, the 30 greatest living American songwriters, according to the New York Times. [6:53] Six critics polled about 250 music industry insiders. [6:56] The list is unranked, focusing on overall impact for songwriters. [7:00] Mariah Carey made the cut. [7:01] Long pushed primarily as a vocalist. [7:03] She told the Times she's always been a singer-songwriter. [7:06] Others on the list include Paul Simon, Stevie Wonder, Carole King and Dolly Parton. [7:11] And Taylor Swift, of course. [7:12] She told the Times she credits her early songwriting success to the intense emotions she felt as a teenager. [7:19] And number one, the British flag was flown upside down at King Charles and Queen Camilla's goodbye ceremony. [7:26] During the farewell event, a military entourage at Arlington National Cemetery carried the Union flag alongside the King and Queen. [7:32] Flying a flag upside down is generally a sign of distress at sea. [7:36] And it's the second flag mishap of the trip. [7:38] The Australian flag was flown by mistake for about two hours down Constitution Avenue. [7:42] But none of this is serious enough to derail what's been a successful trip for the UK. [7:47] Now to some quick hits. [7:48] Other stories we're following this weekend. [7:49] President Trump has signed a bill to end the record-long 76-day partial government shutdown. [7:55] House lawmakers passed the measure more than a month after it was approved by the Senate. [7:59] The bill funds almost every homeland security agency, including the TSA, FEMA, and Secret Service. [8:05] But it does not provide money for ICE and parts of border protection. [8:09] Republicans are working on a separate bill to fund those agencies without Democratic support. [8:13] New fallout from the brazen escape last year from a jail in New Orleans. [8:17] Ten inmates slipped through a hole in a wall behind a toilet, leaving behind a message saying, [8:22] Too easy, lol. [8:23] It took months to recapture all ten inmates, and now the sheriff, who was in charge of the jail, [8:28] is facing a 30-count indictment that claims her poor management led to the escape. [8:33] Susan Hudson says she will aggressively fight to clear her name. [8:36] And a helicopter had to be abandoned in a school parking lot in Tennessee. [8:40] The medevac chopper was reportedly damaged when a gurney hit the tail rotor. [8:44] Another chopper then had to airlift a patient to the hospital. [8:47] The first helicopter ultimately had to be towed from the school's property. [8:52] And now, one more thing before you go. [8:54] Our first look at New York's next-generation taxi, which looks more like an oversized drone than a yellow cab. [9:01] The air taxi, flown by Joby Aviation, recorded these videos of a demonstration flight. [9:05] It takes off from JFK, flying across the East River, then lands at several areas across Manhattan. [9:12] The hour-long or longer taxi ride to New York City is just seven minutes in the electric air taxi. [9:17] Gio Benitez got a closer look. [9:19] Take a look at this, because there's that safety question, right? [9:21] And I've been asking about this. [9:23] It turns out they have six different propellers. [9:25] Each propeller has a backup motor with it. [9:28] So talk about redundancy here. [9:30] And about the cost question, this is for sure going to cost more than a yellow cab. [9:34] But think of an Uber Black. [9:36] And I actually just checked the price this morning from JFK over to Manhattan, and it was $140. [9:41] The goal is to eventually match that. [9:44] And that is what you need to know for breaking news and live updates throughout the day. [9:48] Check out ABC News streaming on Disney+. [9:51] New episodes streaming every day on Disney+.