Business
'I don't trust America.' Trump's tariffs, detentions take a toll on local tourism
On Tuesday, a trickle of visitors traversed the sidewalks of star-studded Hollywood Boulevard, which is usually bustling this time of year with families and students on spring break trips. Parked open-air tour buses and vans were largely empty.
But Jose Ayon, manager at La La Land, a souvenir and gift shop, was not surprised. Foot traffic has struggled to rebound after the pandemic shutdowns and now global tariffs imposed by the Trump administration could make matters worse.
That morning, Ayon said, several vendors that supply mugs, chocolates, plates, magnets and other knickknacks to the store told him that they would hike prices as much as 30%.
“It’s pretty concerning,” said Ayon, who has worked at the store for 10 years. “Everyone in the back is panicking.”
In the face of market turmoil, Trump on Wednesday paused some of the tariffs he had imposed on most countries, while escalating duties on China.
But the twists and turns in the trade war have shaken Wall Street and deepened anxieties among business owners in Los Angeles and nationwide who fear a rise in prices and a disruption in their supply chains.
The fallout for tourism to L.A.
Among the casualties in the ongoing trade hostilities is tourism. Amid news of visa cancellations and deportations, state and local tourism officials are increasingly worried about the potential adverse effects on travel to Los Angeles and California.
“California’s message to all visitors remains the same: You’re welcomed and respected,” Caroline Beteta, president of Visit California, the state’s marketing agency, said in a statement.
Jackie Filla, president of the Hotel Assn. of Los Angeles, said local hoteliers are scrambling to keep foreign visitors coming.
“The way we are perceived globally, is we are blowing up not just our economy but everyone else’s economy,” Filla said. “People don’t think it’s good, they don’t think it’s fair, so why would they go to America?”
The worries are rippling across the local tourism and hospitality industry that employs about 510,000 Angelenos and supports more than 1,000 local businesses, according to the Los Angeles Tourism and Convention Board.
International visitors are crucial to the regional industry because they tend to stay longer and spend more, tourism officials say. Canada and Mexico, which send the most visitors, were hit early on with steep tariffs — some of which remain in place, even after Trump announced Wednesday that he would pause some global tariffs for 90 days.
A Canadian backlash
Canadians, furious over Trump threats to annex their country, are boycotting American products and canceling travel plans south of the border, including scrapping visits to popular winter destinations such as Palm Springs.
That’s especially concerning because Canadians account for a large share of bookings — 770,000 guest nights annually in Los Angeles, Filla said.
The recent two-week detention of a Canadian on a work visa by immigration authorities did not help matters, Filla said. At least one major hotel brand has paused marketing for all of its U.S. properties in reaction to angry comments on its social media accounts, she said.
“How do we attract people from other countries when the tide of media they’re getting is, ‘You may be snatched off the street?’” Filla said. “But we need them to come here, it’s very vital to our economy.”
Aside from fewer visitors, local hotels are bracing for price increases on cleaning products, technical equipment for elevators, golf simulators, spas and other amenities, food imports and a host of other goods because of tariffs, she said.
They are also worried about businesses canceling conferences and cutting travel expenses, and families forgoing vacations because of heightening economic pressures. Hotels that employ unauthorized immigrants also have been rattled by deportation threats.
Adam Burke, president and chief executive of the Los Angeles Tourism and Convention Board, said his organization is “concerned about any factors that could negatively impact perceptions of the U.S. as a preferred travel destination.”
California is the No. 1 travel destination in the U.S., with international visitors spending $26.5 billion last year, a 17.5% increase over 2023, according to Visit California.
That growth is slowing, however. In March, the organization revised its projections for 2025 visitor spending in California to $160 billion, down from $166 billion it had originally. That represents 2.3% annual growth, down from an earlier projection of 6.2%.
The U.S. as a whole is expected to be even more hard hit. Tourism Economics, a Philadelphia-based travel data company, expects international travel to the U.S. to decrease 5% this year, with a 15% decline in travel from Canada.
One bright spot: California is seeing less negative sentiment and a proportionally smaller decline in consideration for travel, according to Visit California, citing data from market research firm YouGov.
Along Hollywood Boulevard on Tuesday afternoon, Canadian tourist Harpreet Kaur, 24, perused shops with her cousins and uncle in tow. Kaur, who lives in Nova Scotia, said Trump’s threats to turn the nation’s northern neighbor into the “51st state” have made people angry.
Kaur was on a two-week trip to see L.A. and visit cousins in Bakersfield.
“I’m not sure what’s going to happen in the future,” she said. “I wanted to see them before anything drastic happens. I don’t trust America, as a tourist.”
Business has been slow all year at Hollywood City Tours, owner Moses Marjanian said. First it was the fires, which caused tourists to cancel their trips because they thought the inferno had reached the Hollywood sign and other major attractions.
“We had a very slow January and February,” he said. “But it’s been carrying on all the way until now. I’m guessing it’s because of the tariffs. Our business is probably down over 30%.”
Marjanian started his company 11 years ago, weathering the pandemic, Hollywood strikes, inflation and other business challenges.
But this is “the worst it’s been,” he said.“We’re giving our tour guides a lot more days off because we’re running less tour buses and they’re not going out full,” he said.
Marjanian believes the decline in bookings is also a result of deportation threats.
“There’s a lot of Hispanic customer base that we have that aren’t out and visiting as much as before,” he said. “Because of the uncertainties they’re facing, they’re probably not spending as much money anymore as they figure out what the future brings.”
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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