Business
In Mexico, fear and defiance as Trump's tariffs take effect
MEXICO CITY — One day after President Trump’s sweeping tariffs took effect, ending decades of free trade across North America, Mexicans reacted with a mix of fear and defiance.
“There will not be submission,” President Claudia Sheinbaum said at her daily news conference Wednesday. “Mexicans are valiant and strong.”
Sheinbaum reiterated her plan to announce punitive counter measures — including taxes on some U.S. imports — at a public event in Mexico City on Sunday.
Trucks line up to cross the border into the United States as tariffs against Mexico go into effect, Tuesday, in Tijuana, Mexico.
(Gregory Bull / Associated Press)
It was unclear whether Mexico’s response would be tempered by the White House announcement Wednesday that automakers would be exempted from the newly imposed tariffs for one month.
Already on Wednesday, the impact of the tariffs was being felt.
At the border, business leaders reported an immediate drop in the quantity of goods crossing north to the U.S. as companies on both sides sought to avoid the new taxes.
In the streets of the nation’s capital, there was a palpable sense of unease.
While the peso has largely held strong against the dollar, there are real fears about what a trade war would mean for Mexico, whose economy depends heavily on commerce with the United States, sending 80% of its exports there.
Noah Espinosa, a 43-year-old dentist in Mexico City, said he worried about rising prices.
“Whatever Trump does, the dollar immediately goes up and everything in Mexico becomes more expensive,” Espinosa said. “The dollar goes up and so do tortillas, the dollar goes up and so does meat.”
He said many of the products he uses in his dental practice come from the United States, too.
“The worst thing,” he said, “is that it seems that Trump does not care about destroying our economy and the economy of his own country, as long as he feels like the most powerful man in the world.”
For many, the specter of an economic crisis brought back memories of another one, during the mid-1990s, when the sudden devaluation of the peso sparked a severe recession and contributed to some 5 million Mexicans immigrating to the U.S.
“From one day to the next, we lost everything,” said Ricardo Aguilar, 65, who owns a hardware store in the Cuajimalpa neighborhood.
“Now that Trump is making these threats, those memories come back to my mind and make me want to cry,” Aguilar said. “Without economic stability, you lose everything: your health, your peace of mind. There is more violence; everything gets complicated.”
“I hope to God that we don’t have to live through a crisis of that magnitude again,” he said. “But Trump is very emboldened.”
The tariffs took effect Tuesday morning. Overnight, Washington began levying a 25% tax on all products imported from Mexico and Canada, with the exception of Canadian oil and gas, which are subject to a 10% tariff. Trump also imposed a new 10% tax on imports from China.
Canada and China immediately announced retaliatory taxes on U.S. goods — Canadian Prime Minister Justin Trudeau called the tariffs “very dumb” — and Mexico said it would soon announce its own counter-tariffs.
Speaking to the U.S. Congress Tuesday night, Trump echoed a promise he made earlier in the day that he would respond to any retaliatory taxes with another set of tariffs.
President Trump claps as he addresses a joint session of Congress at the Capitol in Washington on Tuesday night.
(Ben Curtis / Associated Press)
“Whatever they tariff us, we tariff them,” he said. “Whatever they tax us, we tax them.”
Trump has cited several reasons for imposing tariffs: the flow of illegal drugs and migrants across the U.S. border; his desire to bring manufacturing back to America; his anger over the trade imbalance that the U.S. has with most nations.
“We’ve been ripped off for decades by nearly every country on earth and we will not let that happen any longer,” he said.
In Mexico, there was deep frustration that Trump had not recognized the country’s considerable efforts on security and migration in recent months. Mexico has helped bring illegal border crossings to the lowest levels in years — and has increased seizures of fentanyl, the synthetic opioid that has caused tens of thousands of U.S. deaths.
“Trump is a liar, he said there would be no tariffs if we put a stop to migration,” said Maria Esther Garcia, 51, a homemaker.
She said she hoped Sheinbaum would stop trying to appease the Americans.
“It’s no use because Trump is not a man of honor,” Garcia said. “President Sheinbaum should not trust him. It’s better for us to look for other countries for our Mexican avocados.”
Jorge Lara, a 37-year-old computer technician, said that while Mexicans would be affected by tariffs, harder hit would be American consumers, who will likely soon start paying higher prices for agricultural goods.
He hoped that they would would pressure Trump to reverse course.
“As soon as the Americans begin to suffer from high prices in their country, they will react against their government, and Trump will have no choice but to eliminate the taxes,” Lara said.
In his address Tuesday to Congress, Trump repeated his charge that Mexico is completely under the sway of organized crime — an assertion that Sheinbaum has repeatedly refuted as a calumny.
“The territory to the immediate south of our border is now dominated entirely by criminal cartels that murder, rape, torture and exercise total control,” Trump told Congress. “They have total control over a whole nation, posing a grave threat to our national security.”
Still, Trump lauded Mexican authorities for their decision last week to hand over 29 alleged cartel operatives, including Rafael Caro Quintero, alleged mastermind of the 1985 slaying in Mexico of Drug Enforcement Administration agent Enrique “Kiki” Camarena.
The president explicitly linked the hand-off of the 29 suspects — all wanted in the United States — to his tariff policies.
“That has never happened before. They want to make us happy. First time ever,” Trump said of Mexican officials’ decision to turn over the 29 suspects to U.S. law enforcement. “But we need Mexico and Canada to do much more than they’ve done, and they have to stop the fentanyl and drugs pouring into the USA.”
Times special correspondent Cecilia Sánchez Vidal and staff writer Patrick McDonnell contributed to this report.
Business
A new delivery bot is coming to L.A., built stronger to survive in these streets
The rolling robots that deliver groceries and hot meals across Los Angeles are getting an upgrade.
Coco Robotics, a UCLA-born startup that’s deployed more than 1,000 bots across the country, unveiled its next-generation machines on Thursday.
The new robots are bigger, tougher and better equipped for autonomy than their predecessors. The company will use them to expand into new markets and increase its presence in Los Angeles, where it makes deliveries through a partnership with DoorDash.
Dubbed Coco 2, the next-gen bots have upgraded cameras and front-facing lidar, a laser-based sensor used in self-driving cars. They will use hardware built by Nvidia, the Santa Clara-based artificial intelligence chip giant.
Coco co-founder and chief executive Zach Rash said Coco 2 will be able to make deliveries even in conditions unsafe for human drivers. The robot is fully submersible in case of flooding and is compatible with special snow tires.
Zach Rash, co-founder and CEO of Coco, opens the top of the new Coco 2 (Next-Gen) at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
Early this month, a cute Coco was recorded struggling through flooded roads in L.A.
“She’s doing her best!” said the person recording the video. “She is doing her best, you guys.”
Instagram followers cheered the bot on, with one posting, “Go coco, go,” and others calling for someone to help the robot.
“We want it to have a lot more reliability in the most extreme conditions where it’s either unsafe or uncomfortable for human drivers to be on the road,” Rash said. “Those are the exact times where everyone wants to order.”
The company will ramp up mass production of Coco 2 this summer, Rash said, aiming to produce 1,000 bots each month.
The design is sleek and simple, with a pink-and-white ombré paint job, the company’s name printed in lowercase, and a keypad for loading and unloading the cargo area. The robots have four wheels and a bigger internal compartment for carrying food and goods .
Many of the bots will be used for expansion into new markets across Europe and Asia, but they will also hit the streets in Los Angeles and operate alongside the older Coco bots.
Coco has about 300 bots in Los Angeles already, serving customers from Santa Monica and Venice to Westwood, Mid-City, West Hollywood, Hollywood, Echo Park, Silver Lake, downtown, Koreatown and the USC area.
The new Coco 2 (Next-Gen) drives along the sidewalk at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
The company is in discussion with officials in Culver City, Long Beach and Pasadena about bringing autonomous delivery to those communities.
There’s also been demand for the bots in Studio City, Burbank and the San Fernando Valley, according to Rash.
“A lot of the markets that we go into have been telling us they can’t hire enough people to do the deliveries and to continue to grow at the pace that customers want,” Rash said. “There’s quite a lot of area in Los Angeles that we can still cover.”
The bots already operate in Chicago, Miami and Helsinki, Finland. Last month, they arrived in Jersey City, N.J.
Late last year, Coco announced a partnership with DashMart, DoorDash’s delivery-only online store. The partnership allows Coco bots to deliver fresh groceries, electronics and household essentials as well as hot prepared meals.
With the release of Coco 2, the company is eyeing faster deliveries using bike lanes and road shoulders as opposed to just sidewalks, in cities where it’s safe to do so. Coco 2 can adapt more quickly to new environments and physical obstacles, the company said.
Zach Rash, co-founder and CEO of Coco.
(Kayla Bartkowski/Los Angeles Times)
Coco 2 is designed to operate autonomously, but there will still be human oversight in case the robot runs into trouble, Rash said. Damaged sidewalks or unexpected construction can stop a bot in its tracks.
The need for human supervision has created a new field of jobs for Angelenos.
Though there have been reports of pedestrians bullying the robots by knocking them over or blocking their path, Rash said the community response has been overall positive. The bots are meant to inspire affection.
“One of the design principles on the color and the name and a lot of the branding was to feel warm and friendly to people,” Rash said.
Coco plans to add thousands of bots to its fleet this year. The delivery service got its start as a dorm room project in 2020, when Rash was a student at UCLA. He co-founded the company with fellow student Brad Squicciarini.
The Santa Monica-based company has completed more than 500,000 zero-emission deliveries and its bots have collectively traveled around 1 million miles.
Coco chooses neighborhoods to deploy its bots based on density, prioritizing areas with restaurants clustered together and short delivery distances as well as places where parking is difficult.
The robots can relieve congestion by taking cars and motorbikes off the roads. Rash said there is so much demand for delivery services that the company’s bots are not taking jobs from human drivers.
Instead, Coco can fill gaps in the delivery market while saving merchants money and improving the safety of city streets.
“This vehicle is inherently a lot safer for communities than a car,” Rash said. “We believe our vehicles can operate the highest quality of service and we can do it at the lowest price point.”
Business
Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon
President Trump on Friday directed federal agencies to stop using technology from San Francisco artificial intelligence company Anthropic, escalating a high-profile clash between the AI startup and the Pentagon over safety.
In a Friday post on the social media site Truth Social, Trump described the company as “radical left” and “woke.”
“We don’t need it, we don’t want it, and will not do business with them again!” Trump said.
The president’s harsh words mark a major escalation in the ongoing battle between some in the Trump administration and several technology companies over the use of artificial intelligence in defense tech.
Anthropic has been sparring with the Pentagon, which had threatened to end its $200-million contract with the company on Friday if it didn’t loosen restrictions on its AI model so it could be used for more military purposes. Anthropic had been asking for more guarantees that its tech wouldn’t be used for surveillance of Americans or autonomous weapons.
The tussle could hobble Anthropic’s business with the government. The Trump administration said the company was added to a sweeping national security blacklist, ordering federal agencies to immediately discontinue use of its products and barring any government contractors from maintaining ties with it.
Defense Secretary Pete Hegseth, who met with Anthropic’s Chief Executive Dario Amodei this week, criticized the tech company after Trump’s Truth Social post.
“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote Friday on social media site X.
Anthropic didn’t immediately respond to a request for comment.
Anthropic announced a two-year agreement with the Department of Defense in July to “prototype frontier AI capabilities that advance U.S. national security.”
The company has an AI chatbot called Claude, but it also built a custom AI system for U.S. national security customers.
On Thursday, Amodei signaled the company wouldn’t cave to the Department of Defense’s demands to loosen safety restrictions on its AI models.
The government has emphasized in negotiations that it wants to use Anthropic’s technology only for legal purposes, and the safeguards Anthropic wants are already covered by the law.
Still, Amodei was worried about Washington’s commitment.
“We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” he said in a blog post. “However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”
Tech workers have backed Anthropic’s stance.
Unions and worker groups representing 700,000 employees at Amazon, Google and Microsoft said this week in a joint statement that they’re urging their employers to reject these demands as well if they have additional contracts with the Pentagon.
“Our employers are already complicit in providing their technologies to power mass atrocities and war crimes; capitulating to the Pentagon’s intimidation will only further implicate our labor in violence and repression,” the statement said.
Anthropic’s standoff with the U.S. government could benefit its competitors, such as Elon Musk’s xAI or OpenAI.
Sam Altman, chief executive of OpenAI, the company behind ChatGPT and one of Anthropic’s biggest competitors, told CNBC in an interview that he trusts Anthropic.
“I think they really do care about safety, and I’ve been happy that they’ve been supporting our war fighters,” he said. “I’m not sure where this is going to go.”
Anthropic has distinguished itself from its rivals by touting its concern about AI safety.
The company, valued at roughly $380 billion, is legally required to balance making money with advancing the company’s public benefit of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”
Developers, businesses, government agencies and other organizations use Anthropic’s tools. Its chatbot can generate code, write text and perform other tasks. Anthropic also offers an AI assistant for consumers and makes money from paid subscriptions as well as contracts. Unlike OpenAI, which is testing ads in ChatGPT, Anthropic has pledged not to show ads in its chatbot Claude.
The company has roughly 2,000 employees and has revenue equivalent to about $14 billion a year.
Business
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