Paris summit rejects Russia sanctions relief, mulls Ukraine force

OSAKA, Japan: Japanese Prime Minister Shigeru Ishiba, speaking at Saturday’s opening ceremony for the Osaka expo, expressed his hope that the event will help restore global unity in a world plagued by conflicts and trade wars.
“The world, having overcome the coronavirus pandemic, is now threatened by an array of divisions,” Ishiba said. “At a time like this, it is extremely meaningful that people from around the world gather here and discuss the theme of life and experience cutting-edge technology, diverse ideas and culture.”
Expo 2025 Osaka officially opened Sunday, with the theme of life, world and the future, and Japan hopes to bring unity and portray a future society.

But the event’s celebrations have been somewhat dampened by US President Donald Trump’s recent tariff threats, which add to global tension and uncertainty, with Russia’s war in Ukraine and conflict in the Middle East dragging on.
Citing the expo’s iconic lattice-like wooden “Grand Ring,” which symbolizes unity and encircles the venue, Ishiba said: “I sincerely hope the world will unite again through interactions among countries and visitors in and outside of this ring.”
The costly ring, the world’s largest wooden architectural structure, is 20 meters (65 feet) high and has a 2-kilometer (1.2-mile) circumference.

During the six-month event on the reclaimed island and industrial waste burial site of Yumeshima, which means dream island, in the Osaka Bay, the city is hosting some 180 countries, regions and organizations showcasing their futuristic exhibits inside of about 80 pavilions of unique designs.

It is Osaka’s second world expo after the 1970 event that scored a huge success and attracted 64 million visitors — a record until Shanghai in 2010.
This time, Japan has faced dwindling public interest, and support and was hit by soaring construction costs due to the weaker yen. The cost nearly doubled from the initial estimate to 235 billion yen ($1.64 billion), about 14 percent of which went to the ring, triggering criticisms from many Japanese over the government’s use of their tax money.
The cost increase also caused construction delays for some countries. Several pavilions, including those of Nepal and India, were not quite ready Saturday. Conflicts also affected preparations for Ukraine and the Palestinians. Russia did not participate.

Ticket sales have been slow. So far, 9 million advance tickets had been sold, far short of the organizers’ target of 14 million. Organizers hope to have more than 28 million visitors at the event that lasts through Oct. 13.

Emperor Naruhito, in his address at Saturday’s opening ceremony, recalled visiting the earlier expo as a fascinating experience for a then 10-year-old prince.
“I vividly remember how excited I was coming across the latest technology, playing with a wireless phone and looking at the moon rock,” brought back by the US Apollo 12 lunar mission, said the emperor, now 65.
Naruhito said he hoped the second Osaka expo would be as successful and expressed hope that children will learn more about people, regions and the world and think about future society by interacting with next-generation technologies and efforts for sustainable future.

WASHINGTON: Rick Woldenberg thought he had come up with a sure-fire plan to protect his Chicago-area educational toy company from President Donald Trump’s massive new taxes on Chinese imports.
“When he announced a 20 percent tariff, I made a plan to survive 40 percent, and I thought I was being very clever,” said Woldenberg, CEO of Learning Resources, a third-generation family business that has been manufacturing in China for four decades. “I had worked out that for a very modest price increase, we could withstand 40 percent tariffs, which was an unthinkable increase in costs.”
His worst-case scenario wasn’t worst-case enough. Not even close.
The American president quickly upped the ante with China, raising the levy to 54 percent to offset what he said were China’s unfair trade practices. Then, enraged when China retaliated with tariffs of its own, he upped the levies to a staggering 145 percent.
Woldenberg reckons that will push Learning Resource’s tariff bill from $2.3 million last year to $100.2 million in 2025. “I wish I had $100 million,” he said. “Honest to God, no exaggeration: It feels like the end of days.”
‘Addicted’ to low-price Chinese goods
It might at least be the end of an era of inexpensive consumer goods in America. For four decades, and especially since China joined the World Trade Organization in 2001, Americans have relied on Chinese factories for everything from smartphones to Christmas ornaments.
As tensions between the world’s two biggest economies — and geopolitical rivals — have risen over the past decade, Mexico and Canada have supplanted China as America’s top source of imported goods and services. But China is still No. 3 — and second behind Mexico in goods alone — and continues to dominate in many categories.

China produces 97 percent of America’s imported baby carriages, 96 percent of its artificial flowers and umbrellas, 95 percent of its fireworks, 93 percent of its children’s coloring books and 90 percent of its combs, according to a report from the Macquarie investment bank.
Over the years, American companies have set up supply chains that depend on thousands of Chinese factories. Low tariffs greased the system. As recently as January 2018, US tariffs on China averaged just over 3 percent, according to Chad Bown of the Peterson Institute for International Economics.
“American consumers created China,” said Joe Jurken, founder of the ABC Group in Milwaukee, which helps US businesses manage supply chains in Asia. “American buyers, the consumers, got addicted to cheap pricing. And the brands and the retailers got addicted to the ease of buying from China.”
Slower growth and higher prices
Now Trump, demanding that manufacturers return production to America, is swinging a tariff sledgehammer at the American importers and the Chinese factories they rely on.
“The consequences of tariffs at this scale could be apocalyptic at many levels,” said David French, senior vice president of government affairs at the National Retail Foundation.
The Yale University Budget Lab estimates that the tariffs that Trump has announced globally since taking office would lower US economic growth by 1.1 percentage points in 2025.
The tariffs are also likely to push up prices. The University of Michigan’s survey of consumer sentiment, out Friday, found that Americans expect long-term inflation to reach 4.4 percent, up from 4.1 percent last month.
“Inflation’s going up in the United States,” said Stephen Roach, former chairman of Morgan Stanley Asia and now at Yale Law School’s China Center. “Consumers have figured this out as well.”
“No business can run on uncertainty”
It’s not just the size of Trump’s tariffs that has businesses bewildered and scrambling; it’s the speed and the unpredictability with which the president is rolling them out.
On Wednesday, the White House said the tariffs on China would hit 125 percent. A day later, it corrected that: No, the tariffs would be 145 percent, including a previously announced 20 percent to pressure China to do more to stop the flow of fentanyl into the United States.
China in turn has imposed a 125 percent tariff on the US effective Saturday.
“There is so much uncertainty,” said Isaac Larian, the founder of MGA Entertainment, which makes L.O.L. and Bratz dolls, among other toys. “And no business can run on uncertainty.”
His company gets 65 percent of its product from Chinese factories, a share he is trying to winnow down to 40 percent by the end of the year. MGA also manufactures in India, Vietnam and Cambodia, but Trump is threatening to levy heavy tariffs on those countries, too, after delaying them for 90 days.
Larian estimates that the price of Bratz dolls could go from $15 to $40 and that of L.O.L. dolls could double to $20 by this year’s holiday season.
Even his Little Tikes brand, which is made in Ohio, is not immune. Little Tikes depends on screws and other parts from China. Larian figures the price for its toy cars could rise to $90 from a suggested retail price of $65.
He said MGA would likely cut orders for the fourth quarter because he is worried that higher prices will scare off consumers.
Calling off China production plans
Marc Rosenberg, founder and CEO of The Edge Desk in Deerfield, Illinois, invested millions of dollars of his own money to develop $1,000 ergonomic chairs, which were to start production in China next month.
Now’s he’s delaying production while exploring markets outside the US, including Germany and Italy, where his chairs wouldn’t face Trump’s triple-digit tariffs.He said he wants to see how the situation plays out.

He had looked for ways to make the chairs in the United States and had discussions with potential suppliers in Michigan, but the costs would have been 25 percent to 30 percent higher.
“They didn’t have the skilled labor to do this stuff, and they didn’t have the desire to do it,” Rosenberg said.
Making Chinese imports go ‘kaput’
Woldenberg’s company in Vernon Hills, Illinois, has been in the family since 1916. It was started by his grandfather as a laboratory supply company and evolved over the years into Learning Resources.
The company specializes in educational toys such as Botley: The Coding Robot and the brainteaser Kanoodle. It employs about 500 people — 90 percent in the United States — and makes about 2,400 products in China.

Woldenberg is reeling from the size and suddenness of Trump’s tariffs.
“The products I make in China, about 60 percent of what I do, become economically unviable overnight,” he said. “In an instant, snap of a finger, they’re kaput.”
He described Trump’s call for factories to return to the United States as “a joke.”
“I have been looking for American manufacturers for a long time ... and I have come up with zero companies to partner with,” he said.
The tariffs, unless they’re reduced or eliminated, will wipe out thousands of small Chinese suppliers, Woldenberg predicted.
That would spell disaster for companies like his that have installed expensive tools and molds in Chinese factories, he said. The stand to lose not only their manufacturing base but also possibly their tools, which could get caught up in bankruptcies in China.
Learning Resources has about 10,000 molds, weighing collectively more than 5 million pounds, in China.
“It’s not like you just bring in a canvas bag, zip it up and walk out,” Woldenberg said. “There is no idle manufacturing hub standing fully equipped, full of engineers and qualified people waiting for me to show up with 10,000 molds to make 2,000 products.”