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A Devastating Trade Spat With China Shows Few Signs of Abating

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A Devastating Trade Spat With China Shows Few Signs of Abating

President Trump’s rapidly escalating trade war with China has resulted in eye-watering tariffs on products exchanged between the countries and scrambled prospects for many global businesses that depend on the trade. And there is no end in sight.

The Trump administration has been waiting for the Chinese leader, Xi Jinping, to call Mr. Trump personally, but Beijing appears wary of putting Mr. Xi in an unpredictable and potentially embarrassing situation with the U.S. president.

With the two governments at an impasse, businesses that rely on sourcing products from China — varying from hardware stores to toymakers — have been thrown into turmoil. The triple-digit tariff rates have forced many to halt shipments entirely.

Trump officials have argued that the status quo with China on trade is not sustainable. Mr. Trump has rapidly ratcheted up tariffs on Chinese products, from 54 percent on April 2 to 145 percent just one week later. The Chinese government has argued that the actions are unfair and closely matched his moves, raising its tariffs on American goods to 125 percent on Friday.

But on Friday night, the administration created a significant carve out to its tariffs on China when it exempted some electronics, including smartphones, laptops and televisions. Those products will still be subject to other tariffs that Mr. Trump has put in place, like a 20 percent fee he added to Chinese goods in response to the country’s role in the fentanyl trade.

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Mr. Trump has said he would like to speak with Mr. Xi, but he has stopped short of requesting a phone call, believing that it is the Chinese government’s turn to ask for such a call, according to people familiar with the matter. Trump officials say that dozens of countries have reached out to the administration about negotiations since the levies were imposed. China did not, and instead responded with harsh words and tariffs of its own.

Across the Trump administration, some officials are concerned that the trade war could soon escalate into a national security crisis, potentially causing the Chinese to move up plans for a military invasion of Taiwan.

The Pentagon is assessing the impact of China potentially cutting off rare earth exports to the United States and possibly blocking certain critical components used in U.S. weapons systems, according to a person with knowledge of the preparations. The aim is to fully ascertain what harm the Chinese could inflict on America’s ability to produce and maintain certain weapons and ammunition.

Mr. Trump continues to express optimism, saying that he has always gotten along with Mr. Xi and that “something positive” will come out of the relationship. But analysts have suggested that the situation may already have spiraled out of control.

Julian Evans-Pritchard, the head of China economics for the research firm Capital Economics, said the fact that the Chinese authorities had repeatedly matched U.S. tariff hikes suggested that they were in no rush to negotiate.

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“A partial rollback of tariffs still seems likely at some point,” he said. “But it is hard to envisage a meaningful reset in the U.S.-China relationship.”

At a briefing on Friday, Karoline Leavitt, the White House press secretary, declined to say whether the countries were in communication.

“I’m not going to comment on communications that are happening, or may not be happening, or either way, we’ll leave it to our national security team to get these discussions underway,” she said. She said the president was optimistic, and that he had “made it very clear he’s open to a deal with China.”

Speaking last week at the White House, Mr. Trump said that “China wants to make a deal. They just don’t know how quite to go about it.” He added that the Chinese were “proud people.”

Mr. Trump’s moves have taken tariffs to a level far past what would be prohibitive for trade, creating crises for many American businesses that depend on imports from China.

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Rick Woldenberg, who runs Learning Resources, an Illinois-based maker of educational toys, said the latest tariffs had already forced him to pause some shipments from China. He called the rates that Mr. Trump had imposed “a joke” and said that even concessions from his suppliers could not make a dent in the fees he would owe to the U.S. government.

Learning Resources contracts with factories in Taiwan, India, Vietnam and other countries to make its products, but China is by far its biggest supplier, as it is for most toymakers. China accounted for two-thirds of all imports of toys and sporting goods to the United States last year.

Learning Resources employs about 500 people, most of them in the United States. It had planned to hire more this year to keep up with its fast-growing business, but has now abandoned some of those plans.

“We’re being asphyxiated by our very own government,” Mr. Woldenberg said.

Mr. Woldenberg said he paid about $2.3 million in tariffs and duties in 2024. This year, he would end up paying more than $100 million if sales somehow kept up with his projections from before the trade war. That’s more than he could pay if he cut every expense in the company other than base payroll.

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At this point, Mr. Woldenberg said, the number hardly matters — beyond a certain level, the tariff is simply no longer something anyone in his business can afford to pay.

“He could raise it to 100 billion percent — it doesn’t matter,” he said. “It’s like a legal ban.”

Christophe Lavigne, the president of Highfield, which manufactures boats in China and the United States, said he expected to be subject to 198 percent tariffs on some of his imports, and that he has decided to simply stop his shipments for now.

He said his entire company, and the jobs of his employees and his dealers, was on the line. The pace of change was too fast and unpredictable, he added.

“We cannot adjust our production lines quickly enough,” he said. “Converting our entire supply chain in just two months is not feasible.”

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Major multinational corporations have been in a better position to source products from countries besides China, but they too are reeling. Hobby Lobby, the crafting retailer, told vendors on Thursday that it was delaying shipments from China as a result of the escalating trade war, according to correspondence viewed by The New York Times.

The retailer told vendors that the back-and-forth tariffs had resulted in “a rapidly shifting and unpredictable landscape” and that it hoped diplomacy between the United States and China would “yield a more stable and balanced outcome.”

The implications of disrupting business with one of the country’s biggest trading partners have ricocheted through the economy. The dollar fell to a three-year low on Friday, while Treasury yields continued to swing. A measure of consumer sentiment also tumbled, indicating that Americans were becoming nervous about how higher tariffs might affect them.

Mr. Trump abruptly announced on Wednesday a 90-day pause on the “reciprocal” tariffs that he had unveiled the previous week on countries around the world, and which had gone into effect just hours earlier. But the threat of those tariffs, and of retaliation against U.S. exports, continues to hang over the global economy.

It remains to be seen if the United States and China might try to reach some agreement soon. People familiar with the conversations said that members of the White House National Security Council were in touch with counterparts at the Chinese Embassy, and that Cui Tiankai, the former Chinese ambassador, had held meetings in Washington and New York over the past several weeks to discuss the relationship. But there has been little sign of communication between higher-ranking officials in the Trump administration and the Chinese government.

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Early in Mr. Trump’s first term, Mr. Xi flew to his Mar-a-Lago estate in Florida to meet with Mr. Trump for hours, sharing what Mr. Trump later referred to as “the most beautiful piece of chocolate cake you’ve ever seen.” But that did not stop the countries from entering into a bruising trade war. And in his second term, Mr. Trump has been even more emboldened and unpredictable.

Mr. Trump has given few indications publicly of what he wants the Chinese to do. But Trump officials say the issues are well known. In an annual report released March 31, the Office of the United States Trade Representative detailed the trade barriers that U.S. businesses face when selling abroad, dedicating almost 50 of its nearly 400 pages to China.

In recent weeks, in addition to countering Mr. Trump’s tariff threats, China has added some U.S. companies to an unreliable entity list that essentially bars them from doing business in the country. It has also imposed licensing systems to restrict exports of rare earth elements, which are essential for electric cars and other products.

On Friday, as it announced its latest increase in tariffs on American products, the Chinese government said it would not raise the rate further because it was already so high that the number no longer made any difference.

China’s Ministry of Commerce said that the United States had used tariffs “for bullying and coercion” and had ultimately become “a laughingstock.”

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“If the U.S. continues its tariff numbers game, China will ignore it,” it said.

China also ratcheted up pressure on U.S. companies as it issued new regulations on Friday that will subject semiconductors made by U.S. firms overseas to higher tariffs.

The move will put pressure on companies like Intel, Global Foundries and others that have U.S. chip factories. It may also encourage chip companies to shift manufacturing out of the United States to maintain access to the Chinese market, where the bulk of global electronics are made.

Paul Triolo, a partner at the business strategy firm DGA-Albright Stonebridge Group, said that electric vehicle companies and others were trying to find alternate supplies of rare earth minerals and magnets after the Chinese restrictions last week.

Some companies will have to stop production after 30 or 60 days, depending on stockpiles and how fast they consume those materials, he said. “It is like a game of musical chairs,” he said. “We are talking to clients scrambling to find alternatives, and there are few.”

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Shawn McCreesh, Maggie Haberman, Karen Weise, Tony Romm and Jonathan Swan contributed reporting.

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Which Trump Tariffs Are in Place, in the Works or Ruled Illegal

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Which Trump Tariffs Are in Place, in the Works or Ruled Illegal

Under President Trump, the tariffs keep on changing.

The latest shift arrived this week after a federal trade court ruled that the current centerpiece of his trade strategy — a 10 percent tax on most imports from around the world — exceeded the president’s authority under the law.

For now, that across-the-board duty remains in place, with an appeal getting underway. Still, the legal battle, which is far from finished, adds to the uncertainty that has plagued businesses and consumers throughout Mr. Trump’s global trade war.

Sorting out the tariffs that currently apply (or don’t) generally has boiled down to tracking the status of a handful of high-stakes lawsuits.

Many of the president’s tariffs — the sky-high rates that he first imposed on what became known as “Liberation Day” last year — were struck down by the Supreme Court in February. The administration has begun the work to refund the money collected under those duties, which totals around $166 billion, and the first checks are expected to arrive as soon as Monday.

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This bucket of tariffs includes the country-by-country rates that Mr. Trump first announced to combat the illicit sale of drugs, as well as those he imposed on a “reciprocal” basis in response to what he described as persistent trade imbalances.

Other tariffs applied by Mr. Trump are more legally settled, yet have shifted up or down with some frequency as the White House has sought to accomplish its economic goals — or lessen the consequences of the president’s policies. These include the tariffs that the president applied to products like cars and steel on national security grounds, using a legal provision known as Section 232.

Yet much remains uncertain about Mr. Trump’s next steps, and his tariffs are expected to change considerably — again — in the coming months. Using another set of authorities, known as Section 301, the administration has opened investigations into the trade practices of dozens of countries. Mr. Trump’s goal is to revive the sort of tariffs that he had in place before the Supreme Court sided against him.

At the same time, Mr. Trump has continued to lob new tariff threats against countries, including those in Europe, while promising in general terms to double down on his strategy even in the face of court setbacks.

“We always do it a different way,” Mr. Trump said this week when asked about his latest loss. “We get one ruling, and we do it a different way.”

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Inside the US military playbook to cripple Iran if nuclear talks collapse

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Inside the US military playbook to cripple Iran if nuclear talks collapse

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If negotiations with Iran collapse, the U.S. likely is to move quickly to degrade Tehran’s military capabilities — a campaign analysts say would begin with missile systems, naval assets and command networks before escalating to more controversial targets.

Negotiators are still working toward what officials describe as a preliminary framework agreement — effectively a one-page starting point for broader talks centered on Iran’s nuclear program and potential sanctions relief. But deep mistrust on both sides has left the process fragile, raising the stakes if diplomacy fails. 

“We’re not starting at zero,” retired Army Col. Seth Krummrich, a former Joint Staff planner and current Vice President at Global Guardian, told Fox News Digital. “We’re both starting at minus 1,000 because neither side trusts each other at all. This is going to be a pretty hard process going forward.” 

That tension was on display Thursday, when a senior U.S. official confirmed American forces struck Iran’s Qeshm port and Bandar Abbas — key locations near the Strait of Hormuz — while insisting the operation did not mark a restart of the war or the end of the ceasefire.

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The strike on one of Iran’s oil ports came two days after Iran launched 15 ballistic and cruise missiles at the UAE’s Fujairah Port, drawing anger from Gulf allies. Defense Secretary Pete Hegseth and Joint Chiefs Chairman Gen. Dan Caine said earlier this week the attack did not rise to the level of breaking the ceasefire, describing it as a low-level strike.

President Donald Trump repeatedly has warned that if negotiations collapse, the U.S. could resume bombing Iran — even signaling before the recent ceasefire was implemented that Washington could target the country’s energy infrastructure and key economic assets. But any escalation would likely unfold in phases, beginning with efforts to dismantle Iran’s ability to project force across the region before expanding to more controversial targets.

President Donald Trump has warned repeatedly that if negotiations collapse, the U.S. could resume bombing Iran.  (Aaron Schwartz/CNP/Bloomberg via Getty Images)

If talks break down, any renewed conflict would likely become a “contest for escalation control,” where Iran seeks to impose costs without provoking regime-threatening retaliation while the U.S. works to strip away Tehran’s remaining leverage, according to retired Air Force Lt. Gen. David Deptula.

“The capabilities that would come into focus are the ones Iran uses to generate coercive leverage: ballistic missiles, cruise missiles, air defense systems, maritime strike assets, command-and-control networks, IRGC infrastructure, proxy support channels, and nuclear-related facilities,” he said, referring to the Iranian Revolutionary Guard Corps. 

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“The military objective would be less about punishment and more about denying Iran the tools it uses to escalate,” he said. 

“President Trump has all the cards, and he wisely keeps all options on the table to ensure that Iran can never possess a nuclear weapon,” White House spokesperson Olivia Wales told Fox News Digital. The Pentagon could not immediately be reached for comment. 

One early focus could be Iran’s fleet of fast attack boats in the Strait of Hormuz — a central component of Tehran’s ability to threaten global shipping in one of the world’s most critical energy corridors.

RP Newman, a military and terrorism analyst and Marine Corp veteran, said leaving much of that fleet intact during earlier strikes was a mistake.

IRAN’S REMAINING WEAPONS: HOW TEHRAN CAN STILL DISRUPT THE STRAIT OF HORMUZ

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“We’ve blown up six of them,” he said. “They’ve got about 400 left.” 

The small, fast-moving boats are a key part of Iran’s asymmetric maritime strategy, capable of harassing commercial tankers and U.S. naval forces — and could quickly become a priority target in any renewed campaign.

Much of Iran’s core military structure also remains intact.

INSIDE IRAN’S MILITARY: MISSILES, MILITIAS AND A FORCE BUILT FOR SURVIVAL

Newman said “we’ve only killed less than one percent of IRGC troops,” leaving a large portion of the force still capable of carrying out operations. He estimated the group “numbers between 150 and 190,000.”

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But targeting the IRGC is far more complex than eliminating senior leadership.

“They’re not just a group of leaders at the top that you can kill away,” Krummrich said. “Over 47 years it’s percolated down to every level.”

An excavator removes rubble at the site of a strike that destroyed half of the Khorasaniha Synagogue and nearby residential buildings in Tehran, Iran, on April 7, 2026, according to a security official at the scene. (Francisco Seco/AP)

Retired Rear Adm. Mark Montgomery, a senior fellow at the Foundation for Defense of Democracies policy institute, said Washington may continue tightening economic pressure before broadening military action, arguing the U.S. should “squeeze them for at least another three to six weeks” before considering more aggressive escalation.

“You could have blown Kharg Island back to smithereens,” Krummrich said, referring to Iran’s primary oil export terminal in the Persian Gulf. “But what the planner said was, no — what we can do is a maritime blockade. It will have the same effect.”

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Iran has continued moving crude through covert shipping networks and ship-to-ship transfers, with tanker trackers reporting millions of barrels still reaching markets in recent weeks.

A CIA analysis found Iran may be able to sustain those pressures for another three to four months before facing more severe economic strain, according to a report by The Washington Post.

The question is how far a U.S. campaign could expand if initial pressure fails to force concessions.

Trump has signaled a willingness to go further, warning before the ceasefire that the U.S. could “completely obliterate” Iran’s electric generating plants, oil infrastructure and key export hubs such as Kharg Island if a deal is not reached.

Strikes on the Iranian leadership, the IRGC, and Iranian naval vessels and oil infrastructure have roiled the markets. ( Sasan / Middle East Images / AFP via Getty Images)

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“You don’t do that at first,” Montgomery said, describing strikes on dual-use infrastructure as a conditional step dependent on Iran’s response.

Targeting dual-use infrastructure presents significant legal and operational challenges.

“I’ve got 500 people standing on my target. You can’t hit that,” Newman said.

Such decisions carry political and legal risks, particularly given the likelihood of international scrutiny.

Broader infrastructure strikes also could create long-term instability if they push Iran toward internal collapse.

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“In the short term, it might help. But in the long term, we’re all going to have to deal with it,” Krummrich said. “Once you pull that lever, you’re basically pushing Iran closer to the edge of the abyss.”

A collapse of state authority could create a failed-state scenario across the Strait of Hormuz, with armed groups, drones and missiles operating unchecked in one of the world’s most strategically important waterways.

Even some of the most discussed military options — such as seizing Iran’s highly enriched uranium — would be extremely difficult to execute.

“That’s much harder than it sounds,” said Montgomery.

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Such a mission would likely take months, and require engineers, technicians and heavy excavation equipment, in addition to thousands of U.S. operators providing continuous air coverage.

“When you start to stack that up, that becomes resource intensive and high risk — not even high, extreme risk,” said Krummrich.

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Commentary: For all the chatter by mayoral candidates, can anyone fix L.A.’s enduring problems?

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Commentary: For all the chatter by mayoral candidates, can anyone fix L.A.’s enduring problems?

I’m going to start this story on a quiet tree-lined street in Mar Vista, where a couple I met with on Thursday — the day after the L.A. mayoral debate — have a problem.

It’s not an unusual matter, as things go in Los Angeles. On both sides of the street, the sidewalk rises and falls, uprooted and cracked by shallow roots because over many decades, the trees were not properly maintained.

John Coanda, 61, who grew up in Los Angeles, was never bothered by torn-up sidewalks as a kid.

“In fact,” he said when he first emailed me about his predicament, “my friends and I sometimes used the ramping pavement as jumps for our bicycles.”

But his wife, Barbara, was diagnosed in 2024 with ALS, and she uses a wheelchair. When John pushes her, they can’t use the sidewalk if they want to go to the store or meet with friends, or just enjoy a nice pass through the neighborhood without getting into a vehicle.

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So John pushes Barbara’s wheelchair in the street, which creates an obvious safety problem. And despite John’s best efforts to get City Hall to fix the sidewalks, he’s not expecting help anytime soon.

I’ll circle back to this story, but first, about that debate.

I recruited a half-dozen L.A. residents to watch and send me their thoughts about how the candidates tackled the important issues. And then I felt guilty for having done so, because the candidates didn’t do much tackling at all.

Candidate Spencer Pratt is shown on a television while journalists work during the 2026 Los Angeles mayoral debate at Skirball Cultural Center.

(Jason Armond / Los Angeles Times)

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They hit their talking points, for sure, and Mayor Karen Bass, Councilmember Nithya Raman and TV personality Spencer Pratt each had their moments. But by the end of the debate, and two straight nights of gubernatorial debates as well, I came away thinking there were no clear winners, but there was a definite loser.

Voters.

This is the fault of the format more than of the candidates themselves. The deck is stacked against meaningful, substantive discussions, especially when moderators ask — as they did several times — for one-word answers.

“Moderator questions are so meaningless … and they make it easy for candidates to take potshots at each other,” said longtime political sage Darry Sragow. “The format is guaranteed to elicit nothing that matters.”

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It’d be better to have single-issue debates, and to have candidates pressed for details by journalists who cover those issues and can push back against unrealistic promises and expose a lack of depth.

My debate watchers did some of that themselves. CSUN librarian Yi Ding had praise and criticism for each candidate, but was looking for concrete plans and didn’t get many.

Ding was also disappointed that two other mayoral candidates — Ray Huang and Adam Miller — were not invited to the debate, and I agree with her. Both have been polling low, but with so many undecided voters, and such high unfavorability ratings for Bass, they should have been in the mix.

Mike Washington, a retired pharmacist and West Adams resident, said Bass has done better than previous mayors on homelessness and he didn’t think Raman or Pratt came off as worthy of bumping her out of City Hall.

“The public would have benefited from more questions related to the challenges young people are facing,” said Juan Solorio Jr., president of the San Fernando Valley Young Democrats club. His colleague David Ramirez agreed, saying he was hoping for “more discussion about the cost of living for young adults,” but he and Solorio are both backing Bass.

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West L.A. software developer Mike Eveloff asked the million-dollar question in one of his many observations during the debate:

“Why is LA spending record amounts on homelessness, fire, police, and infrastructure while results deteriorate? Streets and sidewalks crumble. Even the city emblem right in front of City Hall is deteriorated. With the World Cup and Olympics approaching, voters need to know: Do these leaders have the financial discipline and operational competence to manage a fourteen billion dollar city?”

Venice resident Dennis Hathaway, author of “An Octogenarian’s Journal,” said he thinks “these kinds of debates are pretty non-edifying.” And, as someone I wrote about two years ago regarding busted sidewalks in his neighborhood, he shared this lament about Thursday’s debate:

“No mention of broken sidewalks, potholed streets, other deteriorated infrastructure. To me, that’s a much more important subject than non-citizens voting in city elections.”

(Bass did say during the debate that there was a new infrastucture plan in place, and that’s a step in the right direction. But there was no discussion, and when you read the details, 2028 Olympics projects will be prioritized, and it’ll take years to figure out how to fund thousands of additional much-needed fixes.)

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The Coandas live not far from Hathaway, and their lives have been upended first by Barbara’s diagnosis and then by John getting laid off in February from his job as a data analyst. Barbara still teaches French via Zoom, and John is tending to her needs. They started a Gofundme campaign to help pay their bills.

With Barbara in a wheelchair, John contacted the city’s Safe Sidewalks L.A. program last fall, and I think it’s fair to say that name is somewhere between a misnomer and a bad joke.

The “program” responded by email on Halloween, appropriately enough, informing him that under the City Council-approved “Sidewalk Repair Program Prioritization and Scoring System,” his request for help merits only 15 points out of a possible 45.

“Currently,” he was informed, “the estimated wait time for completion of an Access Request with a score of 15 is in excess of 10 years.”

Happy Halloween.

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Over the years, responsibility for sidewalk repairs has shifted between the city and homeowners. There’s a rebate program available to people who repair their own sidewalks, but it’s capped at an amount that doesn’t always cover the costs. And ruptured pavement is keeping lots of lawyers busy with trip-and-fall lawsuits that cost the city millions each year.

Barbara Durieux Coanda and her husband, John Coanda, make their way down the ramp in front of their home in Mar Vista.

Barbara Durieux Coanda, who has ALS, and her husband, John Coanda, make their way down the ramp in front of their home in Mar Vista.

(Genaro Molina / Los Angeles Times)

Coanda told me he doesn’t have the funds at the moment to pay for repairs, and even if he did, there are several more sidewalk disaster zones on both sides of his street, so he’d still have to push his wife’s wheelchair in the street even if he fixed the cracks in front of his own house.

Barbara graciously said she thinks the city has other, higher priorities, but in November her husband contacted the office of Councilmember Traci Park, saying he was told that he would have to wait 10 years for repairs.

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“Sadly,” he wrote, “I don’t think my wife will live that long.”

A Park staffer wrote back, saying, “The turnaround time does sound realistic given the budgetary crisis the city finds itself in.” But, the staffer added, maybe the council member’s office could “help move the needle on this request.”

Coanda said he’s been too busy with his wife’s issues to follow up. But Pete Brown, Park’s communications director, told me Friday afternoon that the office is exploring ways to pay for fixes that don’t take 10 years, including the use of discretionary funds.

I don’t know how that might play out, but I do know that L.A. doesn’t need another debate like the last one.

We need a mayor and council members who refuse to accept that it takes 10 years to create safe passage for a wheelchair.

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In the national capital of broken sidewalks, we need concrete plans.

steve.lopez@latimes.com

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