Japan shouldn't think about selling US Treasuries holdings Weak yen behind rising cost of living, Onodera says Remarks come as Japan gears up for trade talks with US TOKYO, April 13 (Reuters) - Japan must strengthen the yen, such as by helping boost the country's industrial competitiveness, as the currency's weakness has pushed up households' living costs, the ruling party's policy chief said on Sunday. Ahead of trade talks with the U.S., Itsunori Onodera, chair of the Liberal Democratic Party's Policy Research Council, also said Japan should not intentionally sell its U.S. Treasury holdings, the largest outside the United States, in retaliation against tariffs levied by President Donald Trump. Sign up here. "As a U.S. ally, the government shouldn't think about intentionally using U.S. Treasury holdings," Onodera told a programme on public broadcaster NHK, rejecting an opposition lawmaker's suggestion that Tokyo use its huge holdings of U.S. government debt as a negotiating tool in bilateral trade talks. By blaming the weak yen for accelerating inflation, Onodera could be signalling that Japanese policymakers consider the yen's downtrend, rather than its recent rebound, as the bigger problem for the economy. "The weak yen has been among factors pushing up prices," Onodera said. "To strengthen the yen, it's important to strengthen Japanese companies." The bilateral trade negotiations this week will likely include the thorny topic of currency policy, with some officials privately bracing for Washington to call on Tokyo to prop up the yen. The slow pace at which the Bank of Japan is raising interest rates from ultra-low levels could also come under fire, sources have told Reuters. Tokyo's top trade negotiator Ryosei Akazawa, the minister for economic revitalisation, will meet Treasury Secretary Scott Bessent on Thursday, two people familiar with the negotiations told Reuters. TARIFFS ROIL YEN, TREASURIES Japan has historically sought to prevent its currency from rising too much, as a strong yen would hurt its export-reliant economy. But in recent years as the BOJ continued its ultra-loose monetary policy while the Federal Reserve raised U.S. interest rates, the yen slid to nearly three-decade lows. Tokyo intervened to buy the yen in 2022 and again last year, when the dollar had risen to nearly 160 yen. The Japanese currency has recently rallied in a broad-based sell-off of the dollar , which fell on Friday as low as 142.895 yen, its lowest since September. The 10 trading days since Trump hit automakers with tariffs were the most convulsive since the pandemic panic of 2020, as prices of stocks, bonds, oil, gold and the dollar swung wildly. Selling in Treasuries - the linchpin safe asset in global markets - was the heaviest for decades. A massive wave of selling that hit U.S. government debt in Asia on Wednesday stoked market speculation China was among those unloading its holdings. The Treasury sell-off was among the factors that led Trump to announce a 90-day pause on his "reciprocal" tariff plan, with Bessent likely playing a key role. Japan held $1.079 trillion in Treasuries in January, followed by China with $760.8 billion, according to Treasury Department data. https://www.reuters.com/markets/currencies/japan-ruling-party-chief-calls-stronger-yen-2025-04-13/

Indirect talks mediated by Oman aim to address Tehran's escalating nuclear programme Talks took place in a 'productive, calm and positive atmosphere', Iranian foreign minister says He says both sides seek deal in short term: 'We do not want talks for (the sake of) talks' White House says talks have been very positive and constructive Iran has been sceptical about prospects for deal, wary of Trump's military threats DUBAI, April 12 (Reuters) - Iran and the U.S. said they held "positive" and "constructive" talks in Oman on Saturday and agreed to reconvene next week in a dialogue meant to address Tehran's escalating nuclear programme, with President Donald Trumpthreatening military action if there is no deal. "I think we are very close to a basis for negotiations and if we can conclude this basis next week, we’ll have gone a long way and will be able to start real discussions based on that,” Iranian Foreign Minister Abbas Araqchi told state television. Sign up here. Araqchi said the talks - the first between Iran and a Trump administration, including his 2017-2021 first term - took place in a "productive, calm and positive atmosphere". "Both sides have agreed to continue the talks ... probably next Saturday," Araqchi added. "Iran and the U.S. side want an agreement in the short term. We do not want talks for (the sake of) talks." The White House called the talks involving Trump's Middle East envoy Steven Witkoff, U.S. Ambassador to Oman Ana Escrogima and Araqchi "very positive and constructive." "These issues are very complicated, and Special Envoy Witkoff’s direct communication today was a step forward in achieving a mutually beneficial outcome," it said in a statement. "The sides agreed to meet again next Saturday." Asked about the talks, Trump told reporters on Saturday night: "I think they’re going OK." "Nothing matters until you get it done, so I don’t like talking about it, but it’s going OK. The Iran situation is going pretty good, I think," he said on Air Force One. Trump made a surprise announcement on Monday that Washington and Tehran would begin talks in Oman, a Gulf state that has mediated between the West and the Islamic Republic before. It has brokered the release of several foreign citizens and dual nationals held by Iran. BOTH SIDES FAR APART Saturday's exchanges were indirect and mediated by Oman, as Iran had wanted, rather than face-to-face, as Trump had demanded. Each delegation had its separate room and exchanged messages via Oman's foreign minister, according to Iranian Foreign Ministry spokesman Esmail Baghaei. Araqchi said his delegation had a brief encounter with its U.S. counterpart headed by Witkoff, after they exited the talks. "After the end of more than 2-1/2 hours of indirect talks, the heads of the Iranian and American delegations spoke for a few minutes in the presence of the Omani foreign minister as they left the talks. It (the encounter) was based on our political etiquette," Araqchi said. "The current focus of the talks will be de-escalating regional tensions, prisoner exchanges and limited agreements to ease sanctions (against Iran) in exchange for controlling Iran's nuclear programme," an Omani source told Reuters. Baghaei denied this account but did not specify what was false. Trump, who in his first term withdrew the U.S. from a 2015 big-power accord with Tehran, has again brought a tougher approach to a Middle Eastern power whose nuclear programme Washington's ally Israel regards as an existential threat. At the same time, Iran and allied groups have been weakened by the military offensives Israel has launched across the region, including air strikes in Iran, during its war with Hamas after the Palestinian militant group Hamas attacked Israel from Gaza in October 2023. Mikhail Ulyanov, Russia's ambassador to international bodies in Vienna, called the statements issued by both sides after the talks "encouraging". Tehran approached the talks warily, sceptical they could yield a deal and suspicious of Trump, who has repeatedly threatened to bomb Iran if it does not halt its accelerating uranium enrichment programme - regarded by the West as a possible pathway to nuclear weapons. While each side has talked up the chances of some progress, they remain far apart on a dispute that has rumbled on for more than two decades. Iran has long denied seeking nuclear weapons capability, but Western countries and Israel believe it is covertly trying to develop the means to build an atomic bomb. "This is a beginning. So it is normal at this stage for the two sides to present to each other their fundamental positions through the Omani intermediary," Baghaei said. Signs of progress could help cool tensions in a region aflame since 2023 with wars in Gaza and Lebanon, missile fire between Iran and Israel, Houthi attacks on Red Sea shipping and the overthrow of the government in Syria. HIGH STAKES However, failure would aggravate fears of a wider conflagration across a region that exports much of the world's oil. Tehran has cautioned neighbouring countries that have U.S. bases that they would face "severe consequences" if they were involved in any U.S. military attack on the OPEC member. "There is a chance for initial understanding on further negotiations if the other party (U.S.) enters the talks with an equal stance," Araqchi told Iranian TV. Iran's Supreme Leader Ayatollah Ali Khamenei, who has the final say on key state matters, has given Araqchi "full authority" for the talks, an Iranian official told Reuters. Iran has ruled out negotiating its defence capabilities such as its ballistic missile programme. Western nations say Iran's enrichment of uranium, a nuclear fuel source, has gone far beyond the requirements of a civilian energy programme and has produced stocks at a level of fissile purity close to those required in warheads. Trump, who has restored a "maximum pressure" campaign on Tehran since February, ditched a 2015 nuclear pact between Iran and six world powers, including Russia and China, in 2018 during his first term and reimposed crippling sanctions on the Islamic Republic. Since then, Iran's nuclear programme has leaped forward, including by enriching uranium to 60% fissile purity, a technical step from the levels needed for a bomb. https://www.reuters.com/world/middle-east/iran-us-start-talks-oman-under-shadow-regional-conflict-2025-04-12/

Ukraine seeks solutions for Chornobyl containment vessel repair EBRD involved in analysis Solar facility inaugurated to support renewable energy efforts CHORNOBYL, Ukraine, April 12 (Reuters) - Ukraine is seeking solutions to repair the damage caused by a Russian drone attack to the confinement vessel at the stricken Chornobyl nuclear power plant, a government minister said on Saturday. Minister of Environmental Protection and Natural Resources Svitlana Hrynchuk was speaking outside the decommissioned station during the inauguration of a 0.8-megawatt solar power facility ahead of two conferences due to discuss Chornobyl and other issues related to nuclear power operations. Sign up here. She said Ukraine was working together with experts to determine the best way to restore the proper functioning of the containment vessel, or arch, after the February 14 drone strike. "Unfortunately, after the attack, the arch partially lost its functionality. And now, I think, already in May, we will have the results of the analysis that we are currently conducting ...," Hrynchuk said. Taking part in the analysis, she said, was the European Bank for Reconstruction and Development, scientific institutions and companies involved in installing the arc in 2019 to cover the leaking "sarcophagus" underneath, hurriedly put in place in the weeks following the 1986 Chornobyl disaster. "In a few weeks we will have the first results of this analysis," she said. "We are actively working on this ... We, of course, need to restore the "arch" so that there are no leaks under any circumstances, because ensuring nuclear and radiation safety is the main task." Officials at the plant said the drone attack punched a large hole in the new containment structure's outer cover and exploded inside. Russian Foreign Ministry spokeswoman Maria Zakharova at the time called the incident at Chornobyl "a provocation". The containment vessel was intended to cover the vast, and deteriorating, steel and concrete structure erected after the plant's fourth reactor exploded, sending radioactivity over much of Europe in the world's biggest nuclear accident. The plant lies within the 30-km (18-mile) exclusion zone set up after the accident, with abandoned high-rise apartment buildings and an amusement park still standing nearby. Hrynchuk said the solar power facility was important to maintain the power supply to the disused station and was also a start to plans to promote renewable energy in the area. "We have been saying for many years that the exclusion zone needs to be transformed into a zone of renewal," she said. "And this territory, like no other in Ukraine, is suitable for developing renewable energy projects." https://www.reuters.com/world/europe/ukraine-seeking-solutions-damaged-chernobyl-confinement-vessel-minister-says-2025-04-12/

April 12 (Reuters) - South Bow plans to restart the Keystone pipeline by Tuesday, April 15, the company said on Saturday, after it shut the key conduit for the flow of Canadian oil to the U.S. due to an oil spill in North Dakota. South Bow still needs written approval from the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) before restarting the pipeline, the company said. Even after it restarts, Keystone will operate at reduced rates in the U.S. to address a corrective action order issued by the PHMSA on Friday, the company said. Sign up here. Keystone will also reduce pressure on the Canadian sections of the pipeline, and it has notified with the Canada Energy Regulator of that, it said. PHMSA earlier on Friday said that Keystone's history of issues shows a pattern of more frequent and larger oil spills on the over 600,000-barrel-per-day pipeline. A 2021 report from the U.S. Government Accountability Office found 22 spills from the pipeline between 2010 and 2020. PHMSA has also ordered South Bow to re-evaluate previous inspection tests of the pipeline, and conduct new mechanical and metallurgical testing. South Bow has also agreed to conduct a root cause failure analysis. Keystone was pumping about 17,844 barrels of oil per hour when a part of the pipeline ruptured on Tuesday near Fort Ransom, North Dakota, spilling an estimated 3,500 barrels onto agricultural land. As of 1 a.m. CDT on April 11, around 1,170 barrels of the spill had been recovered and cleanup operations were ongoing, according to the PHMSA. The regulator said this week's rupture looked similar to another one on the same pipeline in North Dakota in 2019, in which over 4,000 barrels of oil were leaked. Initial findings of PHMSA's investigation show the failed pipe in both incidents was manufactured by Berg Steel Pipe. Berg Steel did not immediately respond to a request for comment. (This story has been officially corrected from South Bow to say it notified Canadian regulator, not that it agreed with them on reduction of Keystone pressure in paragraph 3) https://www.reuters.com/business/energy/keystone-operator-given-corrective-action-order-after-north-dakota-oil-spill-2025-04-12/

The USD/CAD weekly forecast indicates an improving outlook for Canada’s economy. The trade war between the two largest economies weighed on the dollar. Downbeat US inflation figures increased Fed rate cut bets. The USD/CAD weekly forecast indicates an improving outlook for Canada’s economy, which escaped Trump’s reciprocal tariffs. Ups and downs of USD/CAD The USD/CAD pair collapsed this week as Trump’s tariffs caused a widespread sell-off in US assets. The dollar weakened after Trump imposed a reciprocal tariff on most of the US’s trading partners. Analysts moved to predict a likely global recession that sent most investors to safe-haven currencies. The loonie gained because Canada again escaped new US tariffs, easing worries about Canada’s economy. -Are you interested in learning about the forex indicators? Click here for details- Although Trump paused these tariffs for ninety days, those on China increased. The trade war between the two largest economies weighed on the dollar. Moreover, downbeat US inflation figures increased Fed rate cut bets. Next week’s key events for USD/CAD Next week, traders will focus on Canada’s inflation figures. After a previous reading of 1.1%, economists expect inflation to ease to 0.7%. An unexpected surge would lower BoC rate cut expectations. Meanwhile, soft figures would increase rate-cut bets, hurting the loonie. Additionally, analysts expect the Bank of Canada to keep interest rates unchanged during Wednesday’s meeting. Meanwhile, the US will release its retail sales report, which will show the state of consumer spending and demand. USD/CAD weekly technical forecast: Sharp could pause at the 1.3802 support On the technical side, the USD/CAD price has finally broken out of its consolidation. For a long time, it was trapped between the 1.4200 support and the 1.4502 resistance levels. The previous bullish trend paused, and the price started moving sideways with no clear direction. Meanwhile, the RSI was declining, showing bulls were losing momentum. Eventually, the price broke below the range, supported by a strong candle. It pulled back to retest the SMA before collapsing in a steep move. Bears are targeting the next hurdle at the 1.3802 support level. The decline might pause briefly at this level as the SMA catches up. However, the bearish bias is strong, with the RSI heading for the oversold region. Therefore, bears might eventually break below 1.3802. Such an outcome would clear the path to the 1.3400 key support. The downtrend will continue as long as the price trades below the SMA, with the RSI under 50. https://www.forexcrunch.com/blog/2025/04/12/usd-cad-weekly-forecast-canadas-economic-outlook-brightens-as-tariff-risks-fade/

The EUR/USD weekly forecast shows an investor migration from US assets. Market volatility shot up after Trump implemented reciprocal tariffs. Data revealed weaker-than-expected US consumer and wholesale inflation. The EUR/USD weekly forecast is strongly bullish as investors start migrating from US assets, supporting the euro. Ups and downs of EUR/USD The EUR/USD pair had a bullish week as the dollar collapsed amid economic uncertainty. Meanwhile, the euro rallied together with safe-haven currencies like the yen. Market volatility shot up after Trump implemented reciprocal tariffs on Wednesday. The move caused panic as investors worried about the global economy. -Are you interested in learning about the forex indicators? Click here for details- However, the dollar briefly rebounded when Trump paused these tariffs on most countries. Still, the raging trade wars between China and the US kept a lid on gains. Meanwhile, the euro rallied. Additionally, data revealed weaker-than-expected US consumer and wholesale inflation. As a result, Fed rate cut expectations rose, further weighing on the dollar. Next week’s key events for EUR/USD Next week, market participants will focus on the US retail sales report. The report will show the state of consumer spending and shape the outlook for Fed rate cuts. In the previous month, sales increased by 0.2%. In March, economists forecast a more significant increase of 1.4%. Softer-than-expected sales will signal weaker demand, putting pressure on the Fed to cut interest rates. At the same time, the European Central Bank will hold its policy meeting on Thursday. Economists expect the central bank to cut rates by 25-bps. EUR/USD weekly technical forecast: Bulls break key 1.1204 resistance On the technical side, the EUR/USD price has had a strong bullish run, pushing the price past the 1.1204 resistance level. The rally also put the price far above the 22-SMA, showing the bulls have a strong lead. Meanwhile, the RSI has entered the overbought region, indicating solid bullish momentum. Bulls took charge when the previous downtrend paused near the 1.0201 support level. After taking charge, they kept the price above the 22-SMA, respecting it as a strong support. The price has made a series of higher highs and lows, showing a developed bullish trend. Given the solid bullish bias, the price might soon reach the 1.1603 key level. However, after such a steep swing from the SMA, bulls might need to rest. Therefore, EUR/USD might pull back to retest the recently broken 1.1204 level before climbing higher. https://www.forexcrunch.com/blog/2025/04/12/eur-usd-weekly-forecast-investors-pivot-from-us-markets/

Parliament recalled to pass emergency law Government seeks to avert blast furnace shutdown Nationalisation may be "likely" option, minister says China-owned firm employs 3,500 at Scunthorpe plant LONDON, April 12 (Reuters) - Britain moved to take control of British Steel and keep its blast furnaces open on Saturday, as a minister told an emergency parliamentary session that a full nationalisation of the UK's last maker of virgin steel was becoming increasingly likely. The company, owned by China's Jingye Group, employs 3,500 people at its Scunthorpe plant, whose future had been in question after the government and the company failed to agree a funding deal to switch to greener steel production. Sign up here. The government recalled lawmakers, who had been on Easter recess, in order to pass a law enabling it to direct the company's board and workforce, ensure they get paid, and order the raw materials to keep the blast furnace running. Prime Minister Keir Starmer said that he was taking action to avert the imminent closure of the blast furnaces, which are operating at a loss of 700,000 pounds ($915,600) a day. "The bill will go through today... and that means that we will then be in control of the site," Starmer said on a visit to the steelworks. He acknowledged that the emergency law was "pretty unprecedented", but said it meant there would be a future for steel in Britain and that it was in the national interest. The recall of parliament for a Saturday sitting during a recess is the first since the Falklands War in 1982. Addressing lawmakers, business minister Jonathan Reynolds said the bill would give more time to negotiate a permanent future for British Steel. "A transfer of ownership to the state remains on the table, and it may well at this stage, given the behaviour of the company, be the likely option," Reynolds told lawmakers, saying he still hoped to partner with the private sector to secure its long-term future. "A failure to act today would prevent any more desirable outcome from even being considered." The bill cleared its initial stages in parliament's House of Commons without anyone attempting to vote it down. STRATEGY PENDING The closure of the furnaces would leave Britain as the only G7 country unable to produce so-called virgin steel from iron ore, coke and other inputs. British Steel was already struggling in an over-supplied global market before the rise in energy costs of recent years. U.S. tariffs of 25% on all steel imports, taking effect in March, delivered another blow. The U.S. receives about 5% of British steel exports, worth 400 million pounds a year, according to industry body UK Steel. Reynolds said the issues impacting British Steel went beyond those tariffs, though he would seek to negotiate to remove them. The government had already earmarked 2.5 billion pounds for the steel industry, saying it would publish a strategy for the sector in spring 2025. Funding to keep the plant running would come from existing budgets, the government said. Reynolds said Britain would be dependent on foreign imports if British Steel's Scunthorpe furnaces were to close. UK Steel said it welcomed the proposed law, as did unions representing steelworkers. If British Steel were nationalised it would be the biggest state rescue since a number of banks were taken into government hands in 2008. Less carbon-intensive electric arc furnaces, which make new steel from scrap, are being built at Tata Steel's Port Talbot site, following a government support package worth 500 million pounds. The two blast furnaces at Port Talbot closed last year, and the new electric furnace will not start producing steel until late 2027 or early 2028. ($1 = 0.7645 pounds) https://www.reuters.com/world/uk/uk-seeks-emergency-powers-take-control-british-steel-2025-04-12/

Use of Tether has increased in Venezuela after the U.S. reimposed sanctions on oil exports. A tether spokesperson said that it will freeze addresses linked to evading sanctions. Reuters reported earlier this week that Venezuelan oil company PDVSA was using USDT via intermediaries to bypass U.S. sanctions. Venezuela’s original crypto project, Petro, was shut down earlier this year. Stablecoin issuer Tether has said it will freeze wallets that are using USDT to evade sanctions on oil exports in Venezuela. The decision comes after Reuters reported that Venezuela’s state-run oil company PDVSA increased its use of tether after the U.S. reimposed sanctions on oil exports. The firm froze 41 wallets tied to the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list in December. “Tether respects the OFAC SDN list and is committed to working to ensure sanction addresses are frozen properly,” a Tether spokesperson told CoinDesk. PDVSA’s use of USDT, which began last year, has accelerated following the U.S.’s decision to reimpose sanctions due to concerns over Venezuela’s upcoming election. Venezuela began experimenting with cryptocurrencies in 2018, setting up a token called “petro” as it aimed to tackle economic instability spurred by U.S. sanctions. The token was shelved earlier this year following a lack of adoption. Using cryptocurrencies allows PDVSA and its counterparties to avoid transacting in cash that could be seized by the U.S. in foreign bank accounts. Reuters reports that PDVSA uses intermediaries when transacting in tether to make transfers harder to track. OFAC is privy to the use of crypto, having increased its clamp down on the industry over the past year, fining crypto exchange CoinList $1.2 million for aiding Russian users evade sanctions in December after imposing sanctions on a crypto mixer that was allegedly used by hackers in North Korea. In October last year, Tether froze 32 crypto addresses tied to terrorism and warfare in Israel and Ukraine. One year earlier, however, Tether took a stance against freezing wallets tied to sanctioned coin mixing service Tornado Cash. https://www.coindesk.com/policy/2024/04/24/tether-will-freeze-wallets-evading-venezuelan-sanctions/

April 12 (Reuters) - The Trump administration is drafting an executive order to enable the stockpiling of deep-sea metals to counter China's dominance in battery minerals and rare earth supply chains, the Financial Times reported on Saturday, citing people familiar with the matter. Under the plans, the stockpile would "create large quantities ready and available on U.S. territory to be used in the future", in case of a conflict with China that might constrain imports of metals and rare earths, the report added. Sign up here. Last week, China placed some rare earth elements under export restrictions as part of its response to President Donald Trump's tariff package, potentially cutting the U.S. off from minerals vital to everything from smartphones to electric car batteries. The stockpile is being considered as part of a broader push to fast-track deep-sea mining applications under U.S. law, and to create onshore processing capacity, the report added. China produces around 90% of the world's refined rare earths, a group of 17 elements used across the defense, electric vehicle, clean energy and electronics industries. The U.S. imports most of its rare earths, and most come from China. The White House and China's foreign ministry did not immediately respond to Reuters requests for comments. https://www.reuters.com/world/us/trump-plans-stockpile-deep-sea-metals-counter-china-ft-reports-2025-04-12/

US businesses face rising costs due to Trump's tariffs Companies cancel orders, delay hiring amid tariff uncertainty One business contacted by Reuters has sued US government over tariffs BOULDER, Colorado, April 12 (Reuters) - A toy store manager hit with daily price increase notifications. A lip balm manufacturer forecasts a $5 million jump in cost of goods. A concert venue impresario who saw a surprise price hike of $140,000 to install new seats in a performance hall. They are among a dozen business owners and managers who spoke with Reuters about the impacts of President Donald Trump's tariff regime, providing an early idea of what many more Americans might expect, even as taxes on imports - paid by U.S. companies and often passed on to consumers - were partially paused for 90 days this week. Sign up here. The businesspeople expressed concern about continued economic turbulence. While announcing the 90-day tariff pause on dozens of countries, Trump ratcheted up tariffs on Chinese imports, raising them effectively to 145% when levies imposed earlier this year are taken in to account. He kept tariffs on imports from most other nations at 10% for 90 days, after whipsawing on trade taxes for the past week. Tariffs on Canada and Mexico remain at 25% for goods not covered by the region's existing trade deal. "We're constantly dealing with the uncertainty of the future and of our future supply chains," said Steve Shriver, the founder and CEO of Eco Lips, a Cedar Rapids, Iowa-based company that makes organic health and beauty products with ingredients sourced from more than 50 countries and sold in 40,000 stores nationwide. It has annual sales of around $30 million. On Wednesday, the day Trump announced the pause, Shriver sent a letter to 300 clients for whom Eco Lips manufactures products for their own labels, letting them know that prices will rise and that time frames for delivery will be pushed out. "I don't trust it. It's a 90-day pause. It could change again in 10 days," Shriver said. "There are still 10% tariffs across the board, and that's a substantial addition to our prices." Shriver forecast that his 12-month cost of goods could rise by $5 million, atop his typical $10 million annual outlay for, among other things, ingredients that cannot be grown in the U.S., such as vanilla, coconut oil and cacao. Other businesspeople said they have canceled purchase orders, halted expansion plans and delayed hiring. 'WE'RE SCRAMBLING' Shriver and others said they have received price-increase notifications from suppliers and have already raised their own prices since Trump first started announcing tariffs last month to address what he said were unfair trade imbalances. Trump also has imposed tariffs in pursuit of goals that include keeping out migrants and illegal drugs and encouraging domestic manufacturing. Paul Kusler's Into the Wind is a beloved Boulder, Colorado, kite and toy store that has been around for 45 years and has about $2.5 million in annual sales. Most of the goods Kusler sells are manufactured in China. "The tariffs on China are simply unworkable, it's a serious threat to our business," said Kusler, standing amid a sea of colorful kites, Frisbees, puppets, stuffed animals and every other toy imaginable. "We pay bills weekly. These price increases are happening now for items I already have in the door." Kusler said the increased prices he has seen have been between 7% and 10% - but those reflect the brief period that tariffs on China were at 34% following Trump's "Liberation Day" announcement of the trade taxes on April 2. Kusler thinks he can absorb around 3% of increased costs. He added that he has already seen and will continue to feel suppressed consumer demand amid economic turbulence. "People aren't going to buy toys if they are worried about prices rising for food and other staples," he said. Emily Ley, the owner of Simplified, a Pensacola, Florida-based company that specializes in high-end office planners for women, said that since Trump announced tariffs on Chinese goods in 2017 during his first term, she has paid well over $1 million in trade taxes to the U.S. government. She forecast that at the new tariff level for China, she will nearly match that $1 million within the next 12 months. Ley said she tried for years to have her goods manufactured in the U.S., but could find no way to do it and still make a profit. "This could put us under, put us out of business," she said. "We're scrambling right now over what to do." One thing Ley is doing: suing the U.S. government, arguing the taxes unconstitutionally rely on statutes that have nothing to do with tariffs. In Denver, Colorado, Aisha Ahmad-Post, the executive director for the Newman Center for the Performing Arts at the University of Denver, has spent more than a year managing a major renovation - the replacement of all 971 chairs inside the June Swaner Gates Concert Hall. The Newman Center considered chairs from two U.S. suppliers and one in Canada. One of the American makers was far over their budget and the other's chairs required the use of harsh dry-cleaning solvents as maintenance. In early 2024, Ahmad-Post ordered chairs from Montreal-based Ducharme for just over $560,000 and blacked out a six-week period of hosting any shows for installation in mid-July. On March 5, Ahmad-Post received a letter from Ducharme that it was required to comply with the new Trump trade taxes and "apply the corresponding tariffs to your project." At the time, those tariffs for Canada were at 25% - an increase in $140,000 for the Newman Center seat project, an unwelcome development for an institution still trying to rebuild its rainy day fund that was depleted by the COVID-19 pandemic. "The chairs are already in production, it's not like we can just pivot," Ahmad-Post said. "Now we're stuck trying to figure out how we'll pay for this." https://www.reuters.com/markets/us/that-seat-will-cost-how-much-us-businesses-already-seeing-impact-trump-tariffs-2025-04-12/