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
Nike to Cut 1,400 Jobs as Part of Its Turnaround Plan
Nike is cutting about 1,400 jobs in its operations division, mostly from its technology department, the company said Thursday.
In a note to employees, Venkatesh Alagirisamy, the chief operating officer of Nike, said that management was nearly done reorganizing the business for its turnaround plan, and that the goal was to operate with “more speed, simplicity and precision.”
“This is not a new direction,” Mr. Alagirisamy told employees. “It is the next phase of the work already underway.”
Nike, the world’s largest sportswear company, is trying to recover after missteps led to a prolonged sales slump, in which the brand leaned into lifestyle products and away from performance shoes and apparel. Elliott Hill, the chief executive, has worked to realign the company around sports and speed up product development to create more breakthrough innovations.
In March, Nike told investors that it expected sales to fall this year, with growth in North America offset by poor performance in Asia, where the brand is struggling to rejuvenate sales in China. Executives said at the time that more volatility brought on by the war in the Middle East and rising oil prices might continue to affect its business.
The reorganization has involved cuts across many parts of the organization, including at its headquarters in Beaverton, Ore. Nike slashed some corporate staff last year and eliminated nearly 800 jobs at distribution centers in January.
“You never want to have to go through any sort of layoffs, but to re-center the company, we’re doing some of that,” Mr. Hill said in an interview earlier this year.
Mr. Alagirisamy told employees that Nike was reshaping its technology team and centering employees at its headquarters and a tech center in Bengaluru, India. The layoffs will affect workers across North America, Europe and Asia.
The cuts will also affect staffing in Nike’s factories for Air, the company’s proprietary cushioning system. Employees who work on the supply chain for raw materials will also experience changes as staff is integrated into footwear and apparel teams.
Nike’s Converse brand, which has struggled for years to revive sales, will move some of its engineering resources closer to the factories they support, the company said.
Mr. Alagirisamy said the moves were necessary to optimize Nike’s supply chain, deploy technology faster and bolster relationships with suppliers.
Business
Senate committee kills bill mandating insurance coverage for wildfire safe homes
A bill that would have required insurers to offer coverage to homeowners who take steps to reduce wildfire risk on their property died in the Legislature.
The Senate Insurance Committee on Monday voted down the measure, SB 1076, one of the most ambitious bills spurred by the devastating January 2025 wildfires.
The vote came despite fire victims and others rallying at the state Capitol in support of the measure, authored by state Sen. Sasha Renée Pérez (D-Pasadena), whose district includes the Eaton fire zone.
The Insurance Coverage for Fire-Safe Homes Act originally would have required insurers to offer and renew coverage for any home that meets wildfire-safety standards adopted by the insurance commissioner starting Jan. 1, 2028.
It also threatened insurers with a five-year ban from the sale of home or auto insurance if they did not comply, though it allowed for exceptions.
However, faced with strong opposition from the insurance industry, Pérez had agreed to amend the bill so it would have established community-wide pilot projects across the state to better understand the most effective way to limit property and insurance losses from wildfires.
Insurers would have had to offer four years of coverage to homeowners in successful pilot projects.
Denni Ritter, a vice president of the American Property Casualty Insurance Assn., told the committee that her trade group opposed the bill.
“While we appreciate the intent behind those conversations, those concepts do not remove our opposition, because they retain the same core flaw — substituting underwriting judgment and solvency safeguards with a statutory mandate to accept risk,” she said.
In voting against the bill Sen. Laura Richardson, (D-San Pedro), said: “Last I heard, in the United States, we don’t require any company to do anything. That’s the difference between capitalism and communism, frankly.”
The remarks against the measure prompted committee Chair Sen. Steve Padilla, (D-Chula Vista), to chastise committee members in opposition.
“I’m a little perturbed, and I’m a little disappointed, because you have someone who is trying to work with industry, who is trying to get facts and data,” he said.
Monday’s vote was the fourth time a bill that would have required insurers to offer coverage to so-called “fire hardened” homes failed in the Legislature since 2020, according to an analysis by insurance committee staff.
Fire hardening includes measures such as cutting back brush, installing fire resistant roofs and closing eaves to resist fire embers.
Pérez’s legislation was thought to have a better chance of passage because it followed the most catastrophic wildfires in U.S. history, which damaged or destroyed more than 18,000 structures and killed 31 people.
The bill was co-sponsored by the Los Angeles advocacy group Consumer Watchdog and Every Fire Survivor’s Network, a community group founded in Altadena after the fires formerly called the Eaton Fire Survivors Network.
But it also had broad support from groups such as the California Apartment Association, the California Nurses Association and California Environmental Voters.
Leading up to the fires, many insurers, citing heightened fire risk, had dropped policyholders in fire-prone neighorhoods. That forced them onto the California FAIR Plan, the state’s insurer of last resort, which offers limited but costly policies.
A Times analysis found that that in the Palisades and Eaton fire zones, the FAIR Plan’s rolls from 2020 to 2024 nearly doubled from 14,272 to 28,440. Mandating coverage has been seen as a way of reducing FAIR Plan enrollment.
“I’m disappointed this bill died in committee. Fire survivors deserved better,” Pérez said in a statement .
Also failing Monday in the committee was SB 982, a bill authored by Sen. Scott Wiener, (D-San Francisco). It would have authorized California’s attorney general to sue fossil fuel companies to recover losses from climate-induced disasters. It was opposed by the oil and gas industry.
Passing the committee were two other Pérez bills. SB 877 requires insurers to provide more transparency in the claims process. SB 878 imposes a penalty on insurers who don’t make claims payments on time.
Another bill, SB 1301, authored by insurance commissioner candidate Sen. Ben Allen, (D-Pacific Palisades), also passed. It protects policyholders from unexplained and abrupt policy non-renewals.
Business
How We Cover the White House Correspondents’ Dinner
Times Insider explains who we are and what we do, and delivers behind-the-scenes insights into how our journalism comes together.
Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
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