04172025 BUSINESS

THURSDAY, APRIL 17,

Ex-minister: Gov’t ‘flouted law’ over SpaceX’s EIA

By NEIL HARTNELL Tribune Business Editor

AN ex-Cabinet minister yesterday accused the Government of “flouting the law” over the SpaceX rocket booster landings in its haste “to bend over backwards to please” the latter’s billionaire owner, Elon Musk.

Planning battle erupts over Village Road office complex

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A FURIOUS planning battle has erupted over a Bahamian doctor’s development of a small office complex on Village Road amid residents’ fears it will pave the way for further “heinous” commercial intrusion.

Sur project, and asserted he had “followed the letter of the law” and all Departments of Physical Planning and Ministry of Works processes to obtain every permit needed to proceed with the ongoing construction.

Romauld Ferreira, who oversaw the passage of upgraded environmental protection laws and regulations under the Minnis administration, told Tribune Business that the temporary halt to SpaceX landings in The Bahamas until a full Environmental Impact Assessment (EIA) is completed was effectively an admission that the Government had got the approvals process “backwards”.

Pointing out the regulations accompanying the Environmental Planning and Protection Act require that a full EIA be completed before “the activity” it is examining can take place, he asserted that the Davis administration is “circumventing the law for those they want to do business with” and, in SpaceX’s case, had “thrown all caution to the wind” because of its connection to Mr Musk and his links to the White House.

Moving forward, Mr Ferreira told this newspaper that the EIA must include a “mapping of the debris field” from the first booster landing and, if no material fell on any Bahamian island, “show and demonstrate” this is the case. He argued that The Bahamas was really

The Montagu Heights Neighbourhood Association, in an April 14, 2025, letter sent to the planning authorities and Tribune Business, argued that the project under construction at the junction of Village Road and Windsor Avenue threatens to set a dangerous precedent and open the door to further commercial infiltration into a community they have “fought” to keep single family residential for more than 25 years.

The Association described the go-ahead for the twostorey, two-building project as “an appalling insult” to the efforts by residents and

homeowners to keep their neighbourhood commercialfree, and argued that “there is no longer a residential community” in New Providence “that is safe” from an influx of businesses.

Keenan Johnson, the Town Planning Committee’s chairman, responding to the letter’s accusations that the authorities are failing to ensure “harmonious development”, told this newspaper that after reviewing the files he can confirm that the Subdivision and Development Appeals Board had overturned the initial

rejection and approved the rezoning of the site where the office complex is being constructed for commercial use.

That decision, which overturned the Town Planning Committee’s original verdict, was issued on September 9, 2021, under the former Minnis administrationjust one week before it was thrown out of office by that month’s general election.

And Dr Wesley Francis, the principal behind the development, told Tribune Business that he has “done nothing wrong” in relation to his Big

Voicing disquiet that his name has been made public, and that the Association has “pierced the corporate veil”, he accused it of acting “in bad faith” and failing to respond to his efforts to reach out after being contacted by a mutual acquaintance who had requested he do this.

Suggesting that his name had been disclosed in a bid to portray himself as “the bad guy”, Dr Francis reiterated that the property had been re-zoned for commercial use several years before he acquired it and urged the Association not to drag him into a controversy over its differences with the planning authorities.

‘Stagnant’ Exuma project gains new management

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE principals behind a group taking over February Point’s management yesterday said their ambition is to make it “the crown jewel of Exuma that it deserves to be”.

Eric Kim told Tribune Business that the group, which includes R. Harvey Sasso, president and founder

of Florida-based Coastal Systems, a construction, engineering and marina development firm, have been brought in by the troubled community’s existing owners on a consulting basis to “get the development back in line” so that it can finally move forward.

Asserting that they will also seek to “change the narrative”, and escape the negativity that has

surrounded the development for many years, he added that improving relations with the Government as well as existing home owners will be a key focus.

Mr Kim, though, was coy when asked by this newspaper whether the management/ consulting arrangement with February Point was merely a first step towards he and Mr Sasso acquiring the development and its remaining unsold

Tourism faces ‘very foggy crystal ball’

By NEIL HARTNELL Tribune Business Editor

THE Bahamian tourism industry faces “a very foggy crystal ball” in predicting its near-term performance with global economic turmoil causing many “grave concern”, a senior hotelier warned yesterday.

Jackson Weech, the Bahamas Hotel and Tourism Association (BHTA), in a written response to Tribune Business inquiries confirmed that the upheaval and stock market sell-off triggered by Donald Trump’s trade and tariff policies - and the resulting uncertainty impacting business and consumer confidence - may “have a

lots, as he replied: “You’re a good reporter. That’s something I cannot comment on right now. I would love to but I just can’t comment.” Homeowners at February Point, which Tribune Business reported in 2024 has “stagnated” over the past decade and failed to live up to its promise, were alerted to the new managers by

dampening effect” on travel demand and Bahamian vacations.

“Tourism destinations throughout the globe are monitoring the fluctuating dynamics that could have a heightening impact on travel choices and trends from, to and through our primary source market,

By FAY SIMMONS

Bahamas’ con-

watchdog yesterday

it has resolved more than one of every four complaints received during the 2025 first quarter while recovering $44,000 in compensation for the public. Senator Randy Rolle, the Consumer Protection Commission (CPC) chairman, in a statement said he is “extremely pleased” with the work his team has done so far in resolving consumer disputes with merchants. The watchdog revealed that it has recouped $44,000 for consumers between

January 1, 2025, and April 5, 2025, representing a 60.79 percent recovery rate in claims processed.

Mr Rolle said the agency has seen a decline in complaints related to courier companies, auto parts companies and contractors, sectors that previously had the highest volume of grievances in 2024.

“Every complaint tells a story, and behind each one is a Bahamian who deserves fairness in the marketplace,” said Mr Rolle. “Our job is to listen, investigate, and act — and, when needed, escalate.

We’re not just responding to issues; we’re reshaping

JACKSON WEECH

How to stay ahead of your competition

In a world where competition is so intense, it is sometimes difficult to differentiate and build your own identity. Difficult, but not impossible. However, keeping your business up to speed with ever-evolving market trends and competition is a challenge regardless of how we view it. Businesses should never underestimate the power of competition when determining their next move within the marketplace.

Competition in business is crucial as it drives innovation, encourages efficiency and ultimately benefits consumers with lower prices, better quality and more choice. Striving to give consumers a better product also reflects well on a brand, as it represents its commitment to meeting customer needs as since the firm receives feedback and applies new insights.

I wholeheartedly believe competition in business is good. It is good for companies because it prevents complacency, demands

By

DEIDRE BASTIAN

innovation, and drives teams and products toward continuous improvement. It is also good for society and the wider world as it gives us all something to aspire to, keeps us moving forward, and we are all consumers who are the chief beneficiaries of this

There will, though, be pitfalls and, more often than not, it is easy to fall into the trap of believing everything

we do is right and everything a competitor does is wrong. It is also dangerous to believe that everything our competitors are doing, we should be doing, too. Here are some things that I have learned through personal experience which will help to guide brands along their own journeys.

So: You have developed an idea for a product or service. Now you have to research your market and think along these lines. Do you know who your potential customers are? Are you convinced they will buy your product or service? Is someone already doing what you are doing? What are their strengths and weaknesses? What makes your product or service unique?

Analyse the Landscape

As you figure things out, you should be learning from your competitive landscape, such as paying attention to the product and service trends customers are responding to and, of course, what is inspiring

and attracting top talent. This can range from basic to profoundly sophisticated. However, keeping a close watch on your landscape will help ensure you are keeping up, which is typically required to stay ahead. Connect, support and build relationships

Competitor relationships do not have to be adversarial. Companies can learn from each other and support one another. Well, maybe. But, more importantly, just because your competitor does something does not necessarily mean you should be doing that, too. This goes back to proper analysis without falling into the obvious trap of becoming a carbon copy. Remember, you are in business because you have unique value, which propels you to continue forging your own path towards new points, constant evaluation and evolution.

Differentiate your brand

If you have done a good job analysing your landscape, then it should be

NASSAU’S SMART CITY IN 35,000 WI FI HOOK-UPS

By FAY SIMMONS Tribune Business Reporter

THE Deputy Prime Min-

ister yesterday said the initiative to turn Nassau into a ‘Smart City’ will drive economic growth by allowing businesses to promote their products to cruise passengers.

Chester Cooper, also minister of tourism, investments and aviation, said the main objective is to drive cruise passengers to local businesses and vendors through advertisements as they traverse downtown Nassau during their visit.

Some 35,000 visitors have used the wireless Internet

(Wi Fi) platform it offers since October 2024.

“The primary goal of this initiative is to empower both our local and international stakeholders to tap into the economic potential of cruise tourism, allowing them to market their brands, products and services directly to cruise passengers and visitors downtown, fostering food exploration of Nassau as well as Paradise Island, increasing the support of tourists for local businesses and inspiring our cruise visitors to return as stay over guests,” said Mr Cooper.

“Sponsors can now not only promote their brand, but also highlight nearby attractions and events,

creating memorable experiences associated with their brand. This synergy, and the new energy that these systems will bring, drives economic growth for small businesses and local entrepreneurs.”

The Ministry of Tourism, and the Government’s Department of Information and Communications Technology, have partnered with Aliv to run the Wi Fi zone between Arawak Cay and the Sir Sidney Poitier Bridge.

Mr Cooper said the team will work to expand the Smart City zone and implement the project on other Family Islands. “We hope that we can push further west and further east in due

pretty easy to recognise where you fall within it. Try to align the brand image with your target demographic’s values and interests, which can help you market effectively and develop meaningful connections with your customers. To compete successfully, ensure that shoppers understand what is unique about your goods or service so that it outperforms the competitors’ offerings. This observation is key, for when competition drives prices down consumers have more disposable income and spending power. For instance, when someone shops for groceries with a fixed budget, the less each item costs, the more products they can buy. And let us not forget when consumers have an excellent shopping experience, or receive great customer service, they often become loyal customers. Repeat customers are often critical to a company’s bottom line, so cultivating more enables you to earn

and keep more market share.

Think about this. If consumers know they can trust you to treat them well, they will select you over competitors and perhaps encourage others in their social networks to come on board.

To make your business stand out, create a unique business model based on your values. Be innovative, solve a problem, narrow your target market, focus on superior customer service, create offers that are irresistible and, most important, make it difficult for competitors to compete. Until we meet again, live life for memories rather than regrets. Enjoy life and stay on top of your game.

course. But, of course, there are other destinations as well,” he added.

“This is a work in progress. The team will stay together. We’re not going to stop innovating. And short of putting a timeline on it, we’re going to be pressing forward. We anticipate that this is going to be extraordinarily successful.”

Wayde Watson, parliamentary secretary at the Ministry of Economic Affairs, said 35,000 visitors have used the Wi Fi platform since October 2024. The initiative will allow users to connect to their global network at “affordable rates” and empower local businesses by allowing them to interact with clients in real time.

“By October 2024, the network testing of the Nassau Smart City project went live. Since then,

35,000 people have gained access and connected to the network while in the downtown Nassau port area,” said Mr Watson. “The Nassau Smart City project is designed to ensure that visitors remain connected to their global networks at affordable rates, effectively eliminating the burden of expensive roaming fees. We want our guests to feel at home, connected and engage as they

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explore the beauty and culture of downtown Nassau.

“Moreover, this initiative opens new avenues for local businesses to give real time notifications, and commercial opportunities our merchants can effectively advertise and promote their stores and products, enhancing the overall visit and shopping experience for both residents and tourists alike. It is vital that we empower our local economy, and this Smart City will play a crucial role in this endeavour.”

Mr Watson added that the Government invested $100,000 in the initial stage of the project. “Based on the three-year contract that we have with Aliv, it cost the Government $100,000 to invest into this project initially,” he said.

CHESTER COOPER

LPIA FORECASTING TRAVELLER DROP FOR EASTER WEEKEND

NASSAU’S major aviation gateway yesterday forecast that Easter weekend traveller volumes will decline by between 10.4 percent to 16.4 percent compared to 2024’s holiday period amid global economic uncertainty.

Nassau Airport Development Company (NAD), the Lynden Pindling International Airport (LPIA) operator, in a statement predicted that between 70,000 to 75,000 passengers will pass through its facilities between today and this coming Easter Monday. This represents a decline of between 8,732 and 13,732 passengers compared to the record-breaking 83,732 travellers processed during the 2024 Easter weekend.

NAD said its projections were “conservative”, with the 2025 forecast matching the one that was exceeded in 2024. Easter occurred earlier last year, falling at the end of March, so comparisons are not

like-for-like for the time of year. The same 70,00075,000 passengers were forecast for Easter 2024.

“In 2024, we saw a stronger-than-expected surge in passengers over the Easter weekend with numbers that were previously unseen,” said Vernice Walkine, NAD’s president and chief executive. “Our projections for this year remain conservative, and we believe they more accurately reflect current trends and the actual demand for our destination.

“Our focus remains on ensuring a seamless, safe and enjoyable travel experience for all of our guests.”

NAD is working with key airport partners including Bahamas Immigration, Bahamas Customs, the Airport Authority, US Customs & Border Protection, Air Traffic Services (ATS), airline operators, the Royal Bahamas Police Force and the Road Traffic Department to support operations

from the curbside to the airside.

Jonathan Hanna, NAD’s vice-president of operations, said: “We are anticipating a steady flow of passengers throughout the holiday weekend, and are prepared to manage the higher traffic effectively. With the completion of

our runway rehabilitation project last month, aircraft movements will be handled more efficiently, allowing for smoother operations overall.

“Our teams have been meeting regularly with all airport stakeholders to align on key areas, including proper queue management and staffing during peak operational periods.” NAD is encouraging travellers to arrive at the airport three hours prior to US-bound flights, and two hours ahead of international and domestic flights.

Passengers are being asked to book travel outside of the airport’s peak

Contractor: Blaze was ‘outside scope’ of work

By FAY SIMMONS Tribune Business

THE Bahamian contractor that was working on the Department of Labour’s new office location when it burst into flames on Monday yesterday asserted that the fire originated “outside the scope” of its work zone.

TMF Construction, contractors for the Hyacinth Stuart Building, which was devastated by the blaze, said in a statement that it maintains the “highest standards of safety, compliance, and operational integrity” and is committed to restoring the building so it can provide “critical public services”.

“While investigations are ongoing, initial accounts

indicate that the fire originated in the vicinity of the generator room, electrical conduits and a fuel tank system that are all outside the scope of TMF Construction Ltd.’s operations, oversight or control,” said TMF Construction.

“As a responsible corporate citizen and a contractor with decades of experience, TMF Construction maintains the highest standards of safety, compliance and operational integrity on all worksites.

“As we await the outcome of the official investigation, TMF Construction will refrain from further public comment on the origin of the fire. However, we reaffirm our commitment to transparency, accountability and the restoration of the Hyacinth Stuart Building, which was

intended to provide critical public services to the Bahamian people.”

TMF Construction’s website lists Paul Major, former managing director of Bahamasair, and former chairman of the Bahamas National Festival Commission, as its chief executive. On Monday, a massive fire engulfed the Hyacinth Stuart Building and surrounding commercial properties including Solomon’s Old Trail and Cost Right stores.

AML Foods said its two stores have been “completely lost” and refuted claims that the fire originated in its generator room. The company pointed out that although the cause of the fire has not been confirmed there was construction being carried out

on the Hyacinth Stuart Building.

“While the exact cause of the fire is still under investigation by the relevant authorities, we can confirm that the fire did not originate in the generator room at the Solomon’s Old Trail location contrary to recent media reports. In fact, we confirm that, as of this morning, the Solomon’s generator and electrical room. which were not affected by the fire, remain

intact and operational,” said AML Foods.

“We understand that immediately before the fire, construction work was being carried out at the rear of the Department of Labour building in the vicinity of a fuel tank. We can also confirm that this construction work was in no way affiliated with Solomon’s or Cost Right.”

The company said no jobs will be lost as a result of the fire and staff will be

operational hours of 11am and 3pm where possible. NAD added that drivers coming to LPIA to collect passengers can take advantage of LPIA’s cell phone waiting lot, which allows drivers to wait for up to 60 minutes in the lot free of charge.

deployed to other locations. It confirmed assets are fully insured and that it has started discussions with partners to support recovery efforts.

The fire, which broke out late Monday morning, disrupted operations for the major retailers, forced road closures, and affected the planned relocation of several government agencies to the Hyacinth Stuart Building. Emergency services responded with multiple fire units, and nearly 400 people were evacuated from the area. The cause of the fire is still under investigation by relevant authorities.

LYNDEN PINDLING INTERNATIONAL AIRPORT (LPIA)

BAHAMIAN OFFICIALS ATTEND AIR TRANSPORT CONFERENCE

SENIOR Bahamian avia-

tion officials are attending an International Civil Aviation Organisation (ICAO) conference on ‘facilitating the future of air transport’.

Dr Kenneth Romer, director of aviation, is leading this nation’s delegation to Facilitation Conference 2025 (FALC 2025) accompanied by Antonio Clarke, director of aviation security and facilitation with the Civil Aviation Authority Bahamas (CAAB).

The four-day conference in Doha, Qatar, is due to end today.

The 193 ICAO member states and aviation industry stakeholders are exploring advances in air transport facilitation through promoting collaboration, efficiency and inclusivity in global travel.

“This conference provides a platform to collaborate on a global facilitation strategy that enables adaptation and

responsiveness to the rapid developments in civil aviation and, more so, provides a strategic platform for global leaders to discuss and endorse initiatives to strengthen the role of air transport facilitation in connecting communities and promoting seamless international mobility,” said Dr Romer Ministers and senior officials were due to discuss a draft Ministerial Declaration, reaffirming global commitment to enhancing air transport facilitation in advance of the next ICAO Assembly. The Bahamian delegration was expected to meet with ICAO’s secretary-general, the president of Qatar Civil Aviation Authority, Qatar Airways’ senior vicepresident, and regional and international civil aviation leaders, as well as key CARICOM ambassadors and representatives.

TRAINING AGENCY HOLDS JOB FAIR FOR ROYAL CARIBBEAN

SECURITIES COMMISSION MEETS WITH POLICE CHIEF

SEATED from L to R: Dr Kenneth Romer, director of aviation and deputy director-general of tourism, and acting president of the Qatar Civil Aviation Authority, Mohamed bin Faleh Al-Hajri.

FROM L to R: Dr Kenneth Romer and Fathi Atti, senior vice-president for aero-political and corporate affairs, Qatar Airways.

FROM L to R: Michael Gill, director, legal affairs and external relations bureau, ICAO headquarters; Christopher Barks, regional director, ICAO’s office in Mexico; Dr Kenneth Romer; Juan Salazar, secretary-general, ICAO; and Fabio Rabbani, regional director, ICAO South America. Photos:Qatar Civil Aviation Authority

THE SECURITIES Commission of The Bahamas chairman, Justice Neville Adderley, along with the regulator’s management welcomed commissioner of police, Shanta Knowles, and her team, on Tuesday, April 15, 2025, in a courtesy call at the Securities Commission’s offices in Poinciana House, East Bay Street. Photos:Patrick Hanna/BIS

THE NATIONAL Training Agency hosted a job fair for its graduates at its Gladstone Road offices on April 15, 2025. Royal Caribbean Cruises, pictured, provided the graduates with multiple career opportunities to explore.

Photos:Patrice Johnson/BIS

DPM DEFENDS BAGGAGE FEE HIKE BY BAHAMASAIR

By FAY SIMMONS Tribune Business

THE Deputy Prime Minister yesterday defended Bahamasair’s new baggage fee structure on the basis that it “takes money” to improve the national flag carrier’s service and cut its multi-million dollar losses.

Chester Cooper, also minister of tourism, investments and aviation, said that for Bahamasair to “stand on its own” and not rely on taxpayer subsidies it must be competitive in every area, including its fee structure.

He added that Bahamasair receives a “significant” subvention from the Government to continue its services, both internationally and domestically, so it is important that the airline makes strides to remain competitive.

“The team is doing a tremendous job to continue to improve all facets of Bahamasair. You are aware that Bahamasair receives a significant subvention from the Government, the taxpayers, and therefore we want to ensure that

Bahamasair becomes a more viable entity can that can stand on its own,” said Mr Cooper.

“Therefore we must be competitive, competitive in every way, in on time performance but also competitive in terms of the

fees that we are offering or collecting from our customers.” Mr Cooper said the airline will ensure that its fee structures are fair and are more lenient to domestic travellers.

HOT CROSS BUNS RISE DESPITE VAT’S DROP

By ANNELIA NIXON Tribune Business Reporter

HOT cross buns will still cost more this Easter despite the VAT reduction to 5 percent on unprepared food and a drop in egg prices, as one baker said yesterday.

Michael Turner, owner of Jumper Brother bakeries, praised the efforts made by the Government to help consumers save on costs including the 50 percent VAT rate cut on uncooked food as well as the partnership between Super Value and the Ministry of Agriculture which brought in a cheaper brand of eggs from the Dominican Republic. However, he said the overall price of ingredients

is still high and, as a result, hot cross buns sold this year will still end up on the pricier end compared to previous years.

“The problem is flour has gone up,” Mr Turner said.

“And what they did was put a mark-up on the cost of shipping. So because they put a mark-up on the shipment, what happened now is there’s a domino effect. The cost of flour went up. VAT on the food may have dropped down, but the cost of the food is still the same. Things like certain canned goods, the prices are just ridiculous.

“The only thing I noticed has gone down a lot is the price of strawberries. Certain items like bananas have gone down. But there are certain fruit, their price hasn’t changed. If anything they’ve gone up. The

cost of the pans have gone ridiculously high. You still have to buy flour. You have to buy sugar. Eggs are still pretty high although Super Value brought theirs down a whole lot.

“We have to go up. We had no choice. We had to go up. I tried to drag it down last year, but right now I’m thinking about creative ways to make it cheaper. I’m trying to figure something out to make sure next year, I’ll be able to keep it down low. I don’t think I’d be using those pans as much as something else that could be more economical, and then I could keep the cost down.”

Mr Turner said uncertainty and rising costs lead businesses to “drive” up their costs. “What happens is that when people see a mark-up on things

“People fly routinely on competing airlines that are owned by foreigners, and they pay the fees. So when we fly on the airline that’s owned by us, we should also expect to pay competitive fees. We want to be fair in the fees that we’re charging. We understand that we’re providing a service, and that’s why the fees to Family Islands are lower and more lenient than the fees on international travel,” said Mr Cooper.

“But certainly, every Bahamian, when Bahamasair pulls up and you see that logo on the tail and you’re in Miami or Fort Lauderdale airport, you’re overwhelmed by a sense of pride. So we’ve got to continue to improve Bahamasair, and it takes money to do it.”

Taking effect as of yesterday, Bahamasair’s international baggage fees jumped with the first

went up? I have to take everything up as well.’”

in the industry or some type of tariffs go up, what they do is cause things to go up greatly,” he said.

“For example, when VAT first came into The Bahamas, some people felt as if they’re going to take everything up. Persons began to jump their prices.

“They jump their prices, then they still added on the 7.5 percent I think it was back then. Therefore, the cost really went up on people again. So it’s more like panic. When people become anxious and overly concerned that they’re going to lose, they begin to drive prices up. It’s a domino effect.

“And then everything goes crazy. Even if they don’t have the overhead costs of buying products, everything is just tripping them. Flour went up? Eggs

Mr Turner did note that there are times when price adjustments are inevitable, including when high electricity bills become costs that must be passed on to the consumer.

“So here it is, electricity has been an issue. But it may not affect them in the way they react to it.

So I’m saying someone like me in our industry, where we use refrigeration, some bakeries don’t use as

checked bag at $35, the second at $55, the third at $95 and the fourth or more at $125 each. Domestic travellers still benefit from a free first checked bag, with every other bag following the international rates, beginning at $55.

“For domestic travel within The Bahamas, passengers will continue to enjoy one free checked bag, making inter-island travel even more convenient. Fees for additional checked bags on domestic flights will match the international structure,” Bahamasair said.

“These changes will help ensure Bahamasair can continue to enhance the travel experience, invest in service improvements and maintain its role as the leading airline connecting Bahamians and visitors to and from the beauty and vibrancy of The Bahamas.”

much refrigeration as us, but BPL, they hit us,” Mr Turner said.

“So, we have to try to find ways to cover that extra cost because they are going to go up on the charges, all the surcharges and all these different things. And a lot of times you have to go up without any choice because you begin to feel it where you’re only breaking even and, in some cases, you’re losing. So therefore you have to take prices up. Other than that you go belly up as they say.”

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Ex-minister: Gov’t ‘flouted law’ over SpaceX’s EIA

receiving “space garbage” under the guise of space tourism, and questioned who would be responsible if any debris fell on and damaged a Bahamian home.

The former environment minister also argued that the SpaceX situation has the capacity to further “erode public trust” in government, and enforcement of the law and accompanying regulations, if the proper process is not followed. He added that the result had been to permit “SpaceX to operate in the sovereign territory of The Bahamas in an unregulated manner”.

“Absolutely. It is doing it backwards,” Mr Ferreira said of the landing pause so a full EIA can be conducted. “You do the EIA first. The Environmental Planning and Protection Act regulations call for the EIA to be done first. The EIA is a planning tool; it must be done.

“What this is an admission that they allowed them to operate the space rocket without an EIA. That’s obvious. It shows a total disregard, not just for the environment, but the Environmental Planning and Protection Act and the regulations. It’s really alarming

that they allowed this to go on in contravention of the law.”

Following calls from environmental advocates urging the Government to produce an EIA prior to the original SpaceX landing in Bahamian waters, an environmental baseline study conducted by local consultancy, BRON, was released. However, Eric Carey, the former Bahamas National Trust (BHT) executive director, yesterday said this report was not the same as an EIA.

He added that most environmentalists found the Government’s reliance on the BRON study to provide justification for permitting SpaceX to proceed “very deficient and shortsighted”, and praised the Davis administration and Dr Rhianna Neely-Murphy, the Department of Environmental Planning and Protection (DEPP) director, for their decision to pause all landings until an EIA is completed.

“I think it is the right decision to have made,”

Mr Carey said. “I think the point that a lot of the environmental community were making was that the EIA should have been done

before the first landing was allowed in The Bahamas.

“Myself and others found that the decision to allow the landing based on an environmental baseline assessment, which all it says is what is there - it doesn’t say anything about what is likely to happen - most of us found that to be very deficient and short-sighted.

“I applaud the Government and Dr Neely-Murphy’s decision to suspend future landings until the full EIA has been completed. I think that’s the right decision for our country.” Mr Ferreira, meanwhile, said the Government had attempted to “pass off” the baseline study as a full EIA even though SpaceX’s booster landing had implications for climate change and potential space debris falling on Bahamian islands.

Pointing out that the launch released carbon dioxide and other “matter” into the Earth’s atmosphere, albeit at a higher level, the ex-minister said that in the absence of an EIA there was “no prediction of where this stuff is going to fall. We’re just accepting space garbage falling into the ocean and calling it space tourism.

“We never understood the full impact of what this was all about, and never had the potential risk set out in a way to see how this will affect us and who’s at risk,” Mr Ferreira argued. “They couldn’t tell you who was at risk, the trajectory, and who might be in the debris field. We’re not just an ocean. We’re a collection of islands with people living on them.

“Right now we should have a complete EIA and that should include analysis of the debris field that just happened. It’s not just theoretical. The EIA is a planning tool you do before the activity, not after the activity and then plan for it. The purpose is not just to predict the risk but assess things and suggest mitigation... If it [debris] drops on someone’s house, who’s accountable? Who’s responsible?”

As for the Government’s role, Mr Ferreira blasted: “We’re seeing more of the same from an administration circumventing the law for those they want to do business with. That’s a foolish thing to do. This is flouting the law but more of the same. It’s been a continuous mishmash and cherry-picking; in this case, a complete contravention of

the environmental laws and flouting of the regulations.

“That’s it in a nutshell. It was a horrible decision to let them proceed without an EIA, a horrible decision. I think they were so enamoured by the fact that was Elon Musk and his company that they threw all caution to the wind, and bent over backwards, to please a foreign investor and government at the expense of the sovereignty of our country.”

Mr Ferreira also told Tribune Business that the SpaceX fall-out threatens to undermine Bahamians’ trust in governance. “One of the horrible things about it is that it erodes public trust. Every time you allow a development to proceed without an EIA, what you are doing is eroding public trust. That’s what’s happened on this occasion.

“What they have done is allow SpaceX to operate in our sovereign territory in an unregulated manner because the regulations require an EIA to be done prior to the activity. They ought to have had public meetings on the islands that could have been in the debris field. Whatever island may have been impacted, they needed to hold a public consultation.”

“Regarding the debris from Starship 8’s tank, it was collected and removed outside of The Bahamas as a full expense of SpaceX. However, should any resident suspect space debris has washed ashore, please contact DEPP.

“None of it will remain in our country and The Bahamas would incur no cost. We emphasise that The Bahamas will incur no cost as a result of the debris recovery. The cost and logistics of this effort have been handled entirely by SpaceX in accordance with the international standards, and under Bahamian oversight to ensure compliance with safety and environmental standards.”

Kiko Dontchev, vicepresident of launch at Space X, said it had seen the feedback from environmentalists and understands that a public consultation is necessary so persons can voice their concerns.

Chester Cooper, deputy prime minister, in unveiling the SpaceX booster landing pause, said: “We wish to advise that there will be no further Falcon landings in the Bahamas until SpaceX and its environmental agency has completed a full Environmental Impact Assessment. You may already be aware that any additional mandates, each require a separate licence from the Civil Aviation Authority of the Bahamas (CAAB).

“We heard the feedback from the environmentalists, which is exactly why we are going to go do an EIA, and no landings will happen until we’re complete with that process. That process will also include a public comment period. So folks that have a say on the landings will have a chance,” said Mr Dontchev. He added that the EIA is expected to be completed by the end of summer 2025, and the delay will not interfere with Space X’s scheduled launches. “We hope to be completed by the end of the summer, at which point we can restart,” said Mr Dontchev.

“It will not affect our cadence, but it will affect some of the trajectories we fly. We’re working to make that impact as minimal as possible. And we want to support The Bahamas and do the right thing, so we will figure out how to work through them.”

‘Stagnant’ Exuma project gains new management

messages summoning them to a May 3, 2025, meeting with Mr Kim and his team. He has also promised to meet them individually beforehand to discuss any particular or private concerns they may have.

“I apologise that we have not communicated for several months as there has not been a lot of definitive news to share. However, there has been positive activity and progress over the past many months to bring a renewed focus to February Point and a long-awaited positive direction for the homeowners,” the latter were informed.

“I am very happy to relay to all that a new operating group has been working tirelessly for months and are now in control of February Point. There is a planned homeowners’ meeting for anyone interested in attending on Saturday May 3, 2025. Main agenda is a presentation of the proposed changes and the future plans of February Point.”

And a subsequent message, also obtained by Tribune Business, added: “It has come to the attention of the new development team that a few homeowners have requested to meet in person

CONSUMER

FROM PAGE B1

one-on-one prior to the general meeting on Saturday, May 3.

“The new development group headed by Eric Kim has asked me to inform everyone of his in-person availability to discuss homeowners questions. If there are any homeowners in February Point that would like to meet in person one-on-one, he is happy to meet Wednesday, April 30 through Friday, May 2, before the general meeting on Saturday, May 3 2025.”

Mr Kim, though, told this newspaper: “Takeover is the wrong term. What a homeowner is hoping will happen, and what the reality is, can be two different interpretations. Basically, the correct arrangement is we were brought in by the current ownership group at February Point on a consulting basis to hopefully, with the history of February Point, get the development back in line and current in all aspects.

“The history here, there’s just been no activity to try and get the development moving forward. The current ownership group and the process, it’s not achieving the goals to get the development current in all aspects. We’ve really been tasked to get the development current, to a place

WATCHDOG SOLVES

the consumer landscape through education, advocacy and real enforcement.”

He added that the agency will continue working to ensure all Bahamian consumers are treated fairly, and the community education campaigns the agency holds throughout The Bahamas and on social media are helping consumers become more aware of their rights.

“My team doesn’t operate from behind desks. They are out in the field, at town halls, on radio, and even social media because protecting Bahamians means meeting them where they are,” said Mr Rolle.

“Whether addressing price gouging, misleading promotions or sub-standard products, the Commission is determined to ensure that

no Bahamian consumer is taken advantage of or deprived of their rights.”

The Commission (CPC), in a statement, revealed that 93 complaints have been received for the year representing $72,860, and 25 of those cases have been resolved.

“So far for the year, the CPC received 93 total complaints, which included eight referrals, 16 advisory inquiries, and 69 formal consumer disputes. Of those disputes, 25 cases have already been resolved, while 44 remain open and under investigation,” said the CPC. “In total, the Commission handled $72,861 in consumer claims and successfully refunded $44,295 to aggrieved consumers.”

The Commission said it will continue to “combat unfair pricing and

where it can move forward. That’s in all aspects with everything from government relations.”

Hopes were high when Florida-based investor, John McGarvey, teamed with a group of existing homeowners to acquire February Point from the Hart family for $8.2m in 2014. The new owners, in their application for Bahamas Investment Authority approval, pledged to make a $40m capital investment and “immediately create approximately 130 permanent construction jobs for Bahamians”.

Condominiums, town homes and fractional development was also promised, along with a “hilltop boutique five-star branded hotel and beach club”, but this newspaper was told that none of this has materialised with the developer/ownership not selling a single new home or lot during their decade in charge.

Now, with the project’s last five-year Hotels Encouragement Act agreement having expired on March 31, 2024, there are fears that the Government may demand the retroactive payment of Customs/ import tariffs and real property taxes by homeowners on the basis that the

developer has failed to live up to its Heads of Agreement commitments.

Neither Mr McGarvey nor Mr Sasso responded to Tribune Business messages sent to their personal e-mails seeking comment before press time last night.

Mr Kim, who said he has been visiting Exuma for the past 20 years, added that he was unable to give specific details due to the non-disclosure agreements he has signed.

Still, asserting that renewed development activity at February Point will benefit Exuma’s economy and residents, as we as the wider Bahamas, he added: “We were brought on board to talk about what steps are being taken, and need to be taken, to move forward.... We’re just trying to go through and evaluate what needs to be done.

“It needs to be the jewel of Exuma. It deserves to be the jewel of Exuma. It’s in a tremendous location and really deserves to be the jewel of Exuma. We couldn’t be in a more perfect location, being right next door to Crab Cay with its history. At the end of the day, we are all about moving it forward for the benefit of the local population and Bahamians in general.

ONE IN FOUR Q1 COMPLAINTS

unscrupulous practices”, and is working to develop a mobile app to make filing complaints more convenient.

“The CPC’s work continues to expand beyond complaint resolution. Since its launch, the Commission has introduced a public complaint system, partnered with the Ministry of Finance to support VAT transition monitoring, and brought community education campaigns to schools, churches and Family Island communities. We have also collaborated closely with key agencies like Bahamas Customs and the Price Control Unit to combat unfair pricing and unscrupulous practices,” said the CPC.

“As the country navigates an unpredictable global trade market and evolving consumer markets, the CPC is sharpening its focus

“We’d love to be able to change the narrative into a positive moving forward story instead of the narrative that has existed to-date. Our task is to move it forward for the betterment of local people, the local economy and to what it deserves to be.”

Tribune Business previously reported February Point contacts as revealing that no new home have been built for the past ten years since the present developer group took over.

“February Point is not falling apart, it’s not going to hell, but for the vast majority of individuals it’s not doing what it should be doing,” one contact said.

“It’s the finest you’ll find in George Town. You walk in here and look at Elizabeth Harbour and look at the location of February Point and there’s no reason in the world why this can’t be a thriving community but it’s stagnant.”

While Mr McGarvey has received the lion’s share of blame for February Point’s ills, Tribune Business sources suggested that he is conveniently - and unfairly - being made a scapegoat because the homeowner investor group that partnered with him to acquire the development are frequently at odds with him.

on smarter policy, digital access and increased consumer literacy. A mobile app is in development to make filing complaints and getting help even more convenient.”

Last year, the CPC received $874,746 in claims and recovered $240,426 on behalf of Bahamian consumers. The agency, in revealing its figures for 2024, said the number of reported cases more than doubled, handling 444 reported cases compared to 192 in 2023.

February Point’s immediate Bahamas-based holding company, FP Associates, is owned 100 percent by a Delaware incorporated entity, FP Management Company. The latter is majority-owned by Mr McGarvey, who holds around 55 percent of the equity, while the homeowner group controls the remaining 45 percent.

This newspaper understands that February Point is effectively paralysed because the two sides “cannot agree on anything” and therefore the project has no direction, strategy or vision guiding its build-out. While many homeowners blame Mr McGarvey because he has majority ownership, others are arguing that the minority group has also not lived up to its side of the bargain.

“February Point is still the crown jewel of Great Exuma,” one source said. “It is the gem of Great Exuma. If that doesn’t move soon people will get worried. It sends the wrong message to external investors.” The development is also unlikely to escape scrutiny given that Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, also happens to be the local MP.

SENATOR RANDY ROLLE

Planning battle erupts over Village Road office complex

An Association spokesman told Tribune Business that it was consulting with its attorneys, Glinton, Sweeting & O’Brien, “to plot the next move forward” and determine if it may pursue legal action.

However, they argued that the Appeals Board’s commercial re-zoning may not be the end of the matter given that all land in the Montagu Heights subdivision is bound by restrictive covenants.

“We got an opinion from Glinton, Sweeting & O’Brien in 2012 that the Government cannot remove the restrictive covenants; they are binding to the purchase of the land,” the spokesman said. “The restrictive covenants are attached to the land. That is a part of the subdivision.

Whoever owns the land is burdened by it and whoever buys it benefits from

that attachment to the subdivision.” Restrictive covenants are imposed to control the type and nature of development, and how it takes place, in a particular area or community. The Association, should it launch any legal action, is thus likely to test whether these covenants are still in place and, if so, whether they trump and are superior to the prior commercial re-zoning.

The late Roy Sweeting, the Glinton, Sweeting & O’Brien attorney who delivered that 2012 opinion, wrote that restrictive covenants ‘encumber’ the relevant land because they are “affixed to and run with it” in a bid to preserve “the value and character” of a particular neighbourhood. Property owners in that area have to comply with them, and have the ability to compel others to also abide by them.

“Overall, what this means is that even if the Town Planning Committee agrees to change the zoning on the specific piece of property covered by [an] application, that decision will have no effect whatsoever on the existence and effect of the Montagu Heights restrictive covenants,” Mr Sweeting wrote, “which burden that land and which the other landowners have the benefit of.”

The Association, in its April 14, 2025, letter to Charles Zonicle, the Department of Physical Planning’s director, as well as other officials, including the Prime Minister, said it was “beyond redundant” to restate its more than a quarter century-old position in resisting any commercial development in the Montagu Heights subdivision.

“Despite fighting for more than a quarter of a century to defend what should be deemed clear, approval has been granted for commercial development to be constructed on Lot No.1 of the Montagu Heights subdivision,” the letter said.

Challenging why there was no advertisement of Dr Francis’ application, or public hearing and consultation on the project given recent history that saw the Town Planning Committee initially reject the commercial rezoning application, the Association said: “We have since learned there is a commercial development for Dr Wesley Francis of Big Sur, which consists of two two-storey buildings.”

The property will have two-way vehicle access from Windsor Avenue, and the letter added: “This frankly is an appalling insult to what is the oldest and longest-standing subdivision in New Providence and the homeowners within, as well as all other residential neighbourhoods and communities in and on the Village Road area...

“By permitting commercial infiltration of residential communities

like the Montagu Heights subdivision and others along Village Road, New Providence has become a heinous place to live. Your department should be charged with ensuring the harmonious development of New Providence but instead there is no longer a residential community that is safe.”

The Association said it was impossible for the planning authorities “to not be aware of our stance” of opposing all commercial development in the area, and concluded by adding: “We demand a halt to any construction works on, or approvals for, the development of any properties within the Montagu Heights subdivision that is not single family residential.”

The Association spokesman argued that allowing Dr Francis’ project will set a precedent, and pave the way for, other commercial developments to be approved in the Montagu Heights area. They said two lots between Windsor Avenue and Montagu Avenue, which a developer had previously applied to convert into a strip mall but was rejected, have now also been cleared for seeming development.

“It’s ridiculous,” the spokesman added. “The well-being of many communities is threatened because of the failure of the Ministry of Works and Physical Planning to give a damn about their proper development. Leave the residential communities alone. Town Planning, who are supposed to be looking out for and safeguarding the communities, are doing nothing but permitting their degradation.”

Mr Johnson, the Town Planning chair, in affirming that Dr Francis’ site has been rezoned for commercial purposes, wrote in a note seen by Tribune Business: “Having reviewed the file on this matter, I wish to provide clarification on the planning history and the process that led to the current status of the property in question.

“In 2019, an application for rezoning was submitted to the Department of Physical Planning by the attorneys acting on behalf of the then-owners of the property. In accordance with statutory requirements, a public hearing was conducted, and on November 1, 2019, the Department of Physical Planning notified the applicant of the Town Planning Committee’s decision to refuse the application.

“The applicant subsequently exercised their right to appeal the decision. On September 9, 2021, the Subdivision and Development Appeals Board resolved to overturn the decision of the Town Planning Committee, thereby approving the rezoning of the subject lot for commercial use.”

Mr Johnson added:

“Please note that applications are assessed based on planning considerations relating to the property itself. As such, it is standard practice that planning correspondence and decisions do not reference individual names or current owners, as the focus remains on land use rather than ownership.

“Since the appointment of the current Town Planning Committee under my chairmanship in December 2021, we have remained dedicated to fostering transparency, consistency and public trust in the planning process. We value the concerns raised by communities and stakeholders and aim to ensure that planning decisions are informed, balanced and legally sound.”

Dr Francis, meanwhile, said that when he tried to reach out to the Association the person he contacted said they were travelling, could not really talk and promised to call him back. However, he asserted that they never did prior to the Association circulating its letter and dragging him into the controversy.

“They put my name into that thing. This is a company that’s doing this. I wasn’t happy that my name is on this. It’s not right for them to go and put my

name on this thing and circulate it so widely,” Dr Francis, who is based at Cancer Surgery Bahamas, blasted.

“I did everything I was suppose to do in this situation. There was a property for sale, it was for sale for a long time. It was commercially zoned. I did my due diligence, and had documentation that it was zoned commercial. That was the only circumstance under which I would purchase it. I purchased it through a company, not in my name.”

The commercial rezoning occurred under the site’s previous owner, Maude Lockhart-Braunlich. “I understand their concerns but it’s zoned commercial,” Dr Francis added. “I went through all the processes. I followed what was legal. I didn’t do anything wrong. I saw the opportunity, didn’t break any rules, didn’t ask for any favours.

“It took a long time to get through Town Planning and the Ministry of Works. It took eight to nine months. They went through it and ripped it apart. We adjusted everything. There was due process here. They gave us a permit. If you have an issue with Town Planning, take it up with Town Planning. Why put my name in it, trying to make me the ‘evil guy’ to whip up public sentiment. I did nothing wrong.”

Dr Francis said the complex being constructed, with the site cleared and the foundations now being cut, will include his own and other offices. “I’m not doing anything else,” he asserted. “I don’t have any plans for restaurants, don’t have plans for anything else. Just offices. I’m a physician. I have an office and will put my office there. There are other offices on Village Road. I don’t understand why I’m having all this hassle.”

The doctor said the demolition of the existing property he met at the site benefited the Montague Heights community by driving a number of squatters from the area.

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Tourism faces ‘very foggy crystal ball’

the United States,” he acknowledged.

“The Bahamas, like many other tourism dependent nations, are well aware that economic uncertainties in our source market, including job uncertainties, the perception of disposable income depletions and other factors could have a dampening effect on travel demand given that 80 percent of guests visiting The Bahamas emanate from the United States of America.”

However, warning that it is too early to determine the precise impact, Mr Weech, a senior executive with Atlantis, told this newspaper: “The range and specificity of outcomes are difficult to predict due to the unique undulations of market conditions.

Clarity gleaned from traditional forecasting models is further hampered by an increasingly truncated booking window.

“All of these factors make for a very foggy crystal ball. However, the

conditions that are in play are of grave concern to many in the tourism sector, given that they could potentially disturb our primary economic activity.”

Robert Sands, his predecessor as BHTA president, and Baha Mar’s senior vicepresident of external affairs and government relations, told Tribune Business that the Cable Beach mega resort’s Easter weekend occupancies remain “very similar” to 2024 given that it has always been traditionally strong and represents the winter season peak. He conceded that the guest “booking pace is not as robust as it was”, but said it was currently impossible to determine how much of that it related to the typical post-Easter slowdown or any fall-out for US consumer demand, confidence and travel spending as a result of Mr Trump’s tariffs and economic policies.

Mr Sands also revealed that group business, which is typically booked far out, was “flat” and “not growing”. He said: “Long-term

bookings for group and so forth, we’re not seeing the numbers in that particular category jump. That appears to be flat as well; the booking pace for new groups. Anything that’s not met our forecasts and expectations would be a concern, absolutely.”

Mr Weech, meanwhile, suggested that the cruise industry is better-positioned than land-based hotels and other tourism industry to cope with any US and global economic slowdown. “It is anticipated, however, that certain tourism participants are well-positioned to be more resilient to economic uncertainties in key markets,” the BHTA president said.

“The cruise industry, who are able to offer travellers low entry-level price points for their encapsulating guest accommodations and experiences while traversing to and through The Bahamas, may well be better able to weather potential prevailing headwinds.

“In addition, it is anticipated that there will be a layer of our visitor demographic; the upper echelon of spenders, who may be more impervious to economic contractions [and] who will continue to visit and spend in the destination.”

Mr Weech continued: “Nevertheless, given the important role the tourism sector plays in contributing to the social-economic health and well-being being of the destination, it is imperative that we as a nation, as inter-connected private and public sector partners, navigate these uncharted waters collaboratively, mindfully and intelligently, leveraging our formidable acumen, expertise and allure to protect the sustained development of our tourism economy for the benefit of all of those who depend on this dynamic industry for their livelihood and way of life.”

Graeme Davis, Baha Mar’s president, in addressing the BHTA’s 2025 first quarter meeting earlier this

TRUMP’S TARIFFS COULD BE TOUGH TO CRACK FOR A GERMAN NUTCRACKER MAKER FOCUSED ON THE US

By GEIR MOULSON and MARKUS SCHREIBER Associated Press

U.S. President Donald Trump's tariffs threaten to become a tough nut to crack in an unlikely place — a small company whose factory nestled deep in the hills of eastern Germany produces painstakingly hand-crafted nutcrackers that are snapped up by American collectors.

Alongside classic fare such as a variety of Santas, Scrooge and the

Mad Hatter, specifically American-themed and event-related collectibles are a staple at Steinbach Volkskunst. There's Uncle Sam, the Statue of Liberty, Mickey Mouse and a coronation-themed tribute to Britain's King Charles III among many others. This week, a limitededition creation titled "Resolute Desk of the President," featuring a seated Trump-like figure signing a "presidential proclamation," is taking

shape at Steinbach's factory on the edge of the small town of Marienberg, near the Czech border.

A nutcracker typically takes around a week to produce as its wooden parts are turned, painted, dried, assembled and in many cases dressed in a costume. In this case, the president's blond mane is combed and given a shot of hairspray as a finishing touch. The price tag is over $300, fairly typical for the more elaborate

WOMAN uses hairspray to fixe the hair on a nutcracker titled “Resolute Desk of the President,” featuring a seated figure signing a “presidential proclamation,” at the

factory in Marienberg, Germany, Tuesday, April 15, 2025. Photo:Markus Schreiber/AP

year, acknowledged the global uncertainties stemming from US economic and trade policies and said the hoped-for increase in Canadian visitors as a result of anti-Trump sentiment has yet to occur. “We’re cautiously optimistic for the remainder of the year,” the Baha Mar chief said.

“Of course, with what’s happening in the US there’s uncertainty. We’re very, very cautious about what’s happening up there with the economy in the US. With the Canadian noise that happened in the marketplace, with the potential shifting of tourism away from the US, there is some potential upside with Canadians down to The Bahamas.

“We’re all optimistic that we will see some of that, but we’ve not really seen that so far. We’re closely monitoring our geographic origins and noting there’s not a big bump going forward at this time or going forward from Canada, but we’re continuing to monitor and being cautiously optimistic with

think that ultimately everyone was somehow caught cold," owner and manager Rico Paul says. "But it's the same for everyone ... so we all have to cope with it."

of the company's smallerscale nutcrackers.

For a firm that exports more than 95% of its products and sells more than 90% of what it makes in the United States, Trump's tariffs are a significant potential headache. The U.S. initially imposed a 20% tariff on goods from the European Union — in which Germany, better known for industries such as auto manufacturing — has the biggest economy. But the administration suspended that for 90 days while leaving a baseline 10% tariff in place.

Ahead of the announcement, "we were able to think through various scenarios and think about what would happen or not, but I

Steinbach, with about 35 manufacturing employees and five in office functions, produces 30,000-40,000 items a year and, according to Paul, could sell many more than that. He says the company is lucky to have many longstanding wholesale customers who placed their orders in January for nutcrackers to be delivered throughout the year until Christmas, lessening the immediate concerns.

"There are no direct effects for us yet," Paul says. "No customer has canceled his order, but we will see next year whether the prices have perhaps become too expensive and there is less demand."

The manager says Steinbach is considering whether to set up a logistics facility in

what’s happening in the US,” Mr Davis continued.

“Certainly our booking pace, we look strong for the second quarter headed into the summer months as well. We’re very, very busy working on our fourth hotel and architectural plans as we continue through 2025. The ground breaking is still planned for 2026; we hope as early as possible and, as soon as we have finalised our brand to be a partner on the property, we’ll certainly make an announcement there.

“We’re still this year investing north of $38m in capital improvements throughout the property,” he added. “We just completed a renovation to our guest rooms at SLS, now being just eight years-old. We continue to renovate and enhance the property throughout with this continued investment around the property. We’re excited about 2025 ahead, but are still being cautiously optimistic with what the business outlook is.”

the U.S. and employ people there to ship in goods and offer corporate customers its products from inside the country, so that they don't have to deal with the tariffs.

There are limits to what the company can change. Craft from the Erzgebirge, or Ore Mountains, around Marienberg is an institution in itself and last month was added to a list vetted by a German sub-committee of the United Nations cultural organization UNESCO, as an "example of good practice of the conservation of immaterial cultural heritage."

"This is a 'made in Germany' product and that is also important to the collector," Paul says. "That means we will never relocate production."

The focus on the U.S. market also is deeply embedded in the company's history and goes back nearly 80 years.

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Steinbach-Volkskunst nutcracker

TRUMP SAYS HE’S JOINING

TARIFF TALKS WITH JAPAN AS US SEEKS DEALS AMID TRADE WARS

By DARLENE SUPERVILLE, MARI YAMAGUCHI and JOSH BOAK Associated Press

PRESIDENT Donald Trump on Wednesday inserted himself directly into trade talks with Japanese officials, a sign of the high stakes for the United States after its tariffs rattled the economy and caused the administration to assure the public that it would quickly reach deals.

The Republican president said in a post on his social media platform that he'll attend the meeting alongside Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, top economic advisers with a central role in his trade and tariff policies.

"Hopefully something can be worked out which is good (GREAT!) for Japan and the USA!" Trump wrote in the social media post.

The president's choice to get directly involved in negotiations points to his desire to quickly finalize a slew of trade agreements as China is pursuing its own set of agreements. It's an open test of Trump's reputation as a dealmaker as countries around the world seek to limit the potential damage unleashed by his import taxes.

The sweeping tariffs that Trump announced on

April 2 triggered panic in the financial markets and generated recession fears, causing the U.S. president to quickly put a partial 90-day hold on the import taxes and increase his already steep tariffs against China to as much as 145%.

The pause temporarily spared Japan from 24% across-the-board tariffs, but there continues to be a 10% baseline tariff and a 25% tax on imported cars, auto parts, steel and aluminum exports.

With Japan charging an average tax rate of 1.9% on other countries' goods and having a longstanding alliance with the U.S., the talks on Wednesday are a crucial indicator of whether the Trump administration can achieve a meaningful deal that reassures the markets, American voters and foreign allies.

U.S. economic rival China, meanwhile, is trying to capitalize on the turmoil around Trump's announcements, with its leader, President Xi Jinping, touring nations of Southeast Asia and promoting his country as a more reliable trade partner.

Japan is among the first countries to start open negotiations with the U.S. Trump and other administration officials have said the phones have been "ringing off the hook" with dozens of countries calling, eager to strike deals with a president who views

himself as a master negotiator to avoid tariffs when the 90-day pause ends. Israel and Vietnam have offered to zero out their tariff rates, but Trump has been noncommittal as to whether that would be sufficient.

On Thursday, Trump is scheduled to meet with Italian Prime Minister Giorgia Meloni, who will likely be carrying messages on behalf of the European Union about how to resolve the tariffs Trump placed on the 27-state group.

Still, the U.S. president may also be feeling increased domestic pressures to settle any tariffs as many voters say they returned Trump to the White House with the specific goal of improving the economy. California Gov. Gavin Newsom filed a lawsuit Wednesday that argues that Trump overstepped his authority by declaring an economic emergency to levy his tariffs, with the Democrat saying in a statement that the tariffs have caused economic chaos.

Federal Reserve Chair Jerome Powell warned on Wednesday that Trump's tariff policies would hurt the U.S. economy, a direct warning to a White House trying to sell the import taxes as a long-term positive for the country.

"The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the

economic effects which will include higher inflation and slower growth," Powell said at the Economic Club of Chicago.

Japan, like many other nations trying to minimize the possible economic fallout from Trump's tariffs, has been scrambling to respond. It has set up a special task force to assess the impact of the tariffs and offer loans to anxious companies. Although Prime Minister Shigeru Ishiba has been working hard to coax exemptions out of Trump, the government has said little officially on what concessions it might offer during these talks.

Nor has the administration been transparent about its asks. The Trump administration is seeking to close the $68.5 billion trade deficit with Japan and seeking greater access for U.S.

goods in foreign markets, yet the president has also insisted that tariff revenues can be used to pay down the federal budget deficit.

"Japan is coming in today to negotiate Tariffs, the cost of military support, and 'TRADE FAIRNESS,'" Trump posted on Wednesday.

U.S. officials will be meeting in Washington with Japan's chief trade negotiator, Economic Revitalization Minister Ryosei Akazawa.

"I am prepared for the talks," Akazawa told reporters at Tokyo's Haneda Airport before boarding his flight. "I will negotiate in order to firmly protect our national interest."

He said that both Bessent and U.S. Trade Representative Jamieson Greer are "known to be pro-Japan

and professionally talented" and that he hopes to build a relationship of trust with them.

"I believe we can have good talks toward a winwin relationship that will serve national interest for both Japan and the United States," he said.

Japan has contended that Trump's tariff measures are likely to violate bilateral trade agreements or World Trade Organization rules.

While Ishiba has said he opposes retaliatory tariffs, he also has said he is in no rush to push for a settlement because he doesn't want concessions.

Xi, meanwhile, stopped in Malaysia on Wednesday and told its leader that China will be a collaborative partner and stand with its Southeast Asian neighbors after the global economic shocks.

Experts make new recommendations on RSV and meningitis vaccines, but it’s unclear what happens next

By MIKE STOBBE AP Medical Writer

A FEDERAL panel of experts on Wednesday recommended an expansion of RSV vaccinations for adults and a new combination shot as another option to protect teens against meningitis.

The Advisory Committee on Immunization Practices also voted to recommend a shot to protect travelers from a mosquito-borne illness called chikungunya.

But it's not clear who will decide whether to accept those recommendations.

The 15-member expert panel makes recommendations to the director of the Centers for Disease Control and Prevention on how regulator-cleared vaccines should be used. CDC directors almost always approve the recommendations.

The Trump administration named Susan Monarez as acting CDC director in January, and last month picked her to lead the agency. But while she's awaiting Senate confirmation, she has essentially

recused herself from regular duties because of federal law around vacancies, according to two CDC officials speaking on condition of anonymity because they were not authorized to discuss agency matters and feared being fired.

That means any committee recommendations made Wednesday may move to U.S. Health Secretary Robert F. Kennedy Jr., a leading voice in the U.S. anti-vaccine movement.

A Department of Health and Human Services spokesperson has told The Associated Press he was looking into how the agency would decide on the panel's recommendations.

Those recommendations on Wednesday were:

— People 50 to 59 should be able to get vaccinated against respiratory syncytial virus have risks including heart disease, diabetes and chronic obstructive pulmonary disorder.

— Endorsement of a new combination shot made by GSK that protects against five strains

of meningococcal bacteria, including a strain that caused a spate of outbreaks on college campuses about 10 years ago. It would join other products that also target the germs.

— Adding a second chikungunya vaccine to the options for Americans age 12 and older who are traveling to countries where outbreaks are occurring. About 100 to 200 cases are reported annually among U.S. travelers.

— Adding a new precaution for the older chikungunya vaccine that uses weakened but live virus: People 65 and older should weigh the risks of benefits of that version of the shot, the panel said. The precaution was added after panel members heard about an investigation into six reports of people 65 and older — most of them with other medical problems — who became ill with heart or brain symptoms less than a week after vaccination. The investigation is continuing.

JAPAN’s chief trade negotiator and Economic Revitalization Minister Ryosei Akazawa, center, speaks to the reporters before this departure for the U.S., at Haneda airport in Tokyo, Wednesday, April 16, 2025.

Photo:Kyodo News/AP

OpenAI picks labour icon Dolores Huerta and other philanthropy advisers as it moves toward for-profit

By MATT O'BRIEN AP Technology Writer

OPENAI has named labor leader Dolores Huerta and three others to a temporary advisory board that will help guide the artificial intelligence company's philanthropy as it attempts to shift itself into a for-profit business.

Huerta, who turned 95 last week, formed the first farmworkers union with Cesar Chavez in the early 1960s and will now voice her ideas on the direction of philanthropic initiatives that OpenAI says will consider "both the promise and risks of AI."

The group will have just 90 days to make their suggestions.

"She recognizes the significance of AI in today's world and anybody who's been paying attention for the last 50 years knows she will be a force in this conversation," said Daniel Zingale, the convener of OpenAI's new nonprofit commission and a former adviser to three California governors.

Huerta's advice won't be binding but the presence of a social activist icon could be influential as OpenAI CEO Sam Altman attempts a costly restructuring of the San Francisco company's corporate governance, which requires the approval of California's attorney general and others.

Another coalition of labor leaders and nonprofits recently petitioned state Attorney General Rob Bonta, a Democrat, to investigate OpenAI, halt the proposed conversion and "protect billions of dollars that are under threat as profit-driven hunger for power yields conflicts of interest."

OpenAI, the maker of ChatGPT, started out in 2015 as a nonprofit research laboratory dedicated to safely building better-thanhuman AI that benefits humanity. It later formed a forprofit arm and shifted most of its staff there, but is still controlled by a nonprofit board of directors. It is now trying to convert itself more fully into a for-profit corporation but faces a number of hurdles, including getting the approval of California and Delaware attorneys general, potentially buying out the nonprofit's pricy assets and fighting a lawsuit from co-founder and early investor Elon Musk.

Backed by Japanese tech giant SoftBank, OpenAI last month said it's working to raise $40 billion in funding, putting its value at $300 billion.

Huerta will be joined on the new advisory commission by former Spanish-language media executive Monica Lozano; Robert Ross, the recently retired president of The California Endowment; and

Jack Oliver, an attorney and longtime Republican campaign fundraiser. Zingale, the group's convener, is a former aide to California governors including Democrat Gavin Newsom and Republican Arnold Schwarzenegger.

"We're interested in how you put the power of AI in the hands of everyday people and the community organizations that serve them," Zingale said in an interview Wednesday.

"Because, if AI is going to bring a renaissance, or a dark age, these are the people you want to tip the scale in favor of humanity."

The group is now tasked with gathering community feedback for the problems OpenAI's philanthropy could work to address. But for California nonprofit leaders pushing for legal action from the state attorney general, it doesn't alter what they view as the state's duty to pause the restructuring, assess the value of OpenAI's charitable assets and make sure they are used in the public's interest.

"As impressive as the individual members of OpenAI's advisory commission are, the commission itself appears to be a calculated distraction from the core problem: OpenAI misappropriating its nonprofit assets for private gain," said Orson Aguilar, the CEO and founding president of LatinoProsperity, in a written statement.

HONOREE Dolores Huerta attends The Albies hosted by the Clooney Foundation for Justice at the New York Public Library on Thursday, Sept. 26, 2024, in New York.

Photo:Evan Agostini/AP

By JOSH FUNK AP Business Writer

CSX railroad's profit fell 27% in the first quarter as two major construction projects forced them to reroute some trains and constrained its response to flooding and

other weather challenges, curtailing shipments.

The Jacksonville, Florida-based railroad said it earned $646 million net income, or 34 cents per share, during the quarter. That's down from $880 million, or 45 cents per share, a year ago, and the results fell short of Wall Street expectations.

The analysts surveyed by FactSet Research predicted CSX would earn 37 cents a share.

CEO Joe Hinrichs said the quarter was disappointing but the railroad is committed to improving its performance. And even with the delayed and missed shipments Hinrichs said shippers still gave the railroad good marks on a customer service survey because CSX worked to keep them updated on problems.

CSX is in the middle of expanding a key tunnel in Baltimore, so it will be able to carry double-stacked shipping containers, and the railroad is completing repairs related to Hurricanes Helene and Milton. Both those projects are scheduled to wrap up in the fourth quarter of this year, so the railroad will be constrained until then.

Edward Jones analyst Jeff Windau said CSX lost the flexibility it normally uses to respond to weather disruptions because of the construction projects.

Hinrichs said that right now two of CSX's main north-south routes are closed on the East Coast so it had to shift traffic over to the central and western parts of its network, which are now crowded. Then when customers weren't getting their empty rail cars returned on time because of the delays they added additional cars and added to the congestion.

"The resiliency of our network has been diminished because we lost some

routes," Hinrichs said in an interview with The Associated Press. Later he added "The shocks are what we are having trouble responding to."

Hinrichs said he still expects volume to increase overall this year, but it's hard to predict how much because of all the uncertainty about trade policy. But right now demand is still holding steady across most sectors while companies wait to see which tariffs are going to stick.

President Donald Trump's trade war could lead to a drop in shipments of imported goods, but so far the railroad said demand remains fairly steady. And in the long run, CSX could benefit from the expected increase in U.S. manufacturing because the railroad will haul raw materials and finished products for those factories.

But during this first quarter, deliveries of shipping containers actually grew 2% as some companies tried to get more of their shipments ahead of Trump's tariffs.

CSX said the total volume of shipments it delivered slipped 1%, and revenue dropped 7% to $3.42 billion as coal and fuel surcharge revenue fell. That also came in lower than the $3.45 billion that analysts expected.

CSX and the other eastern railroad, Norfolk Southern, could also benefit long term if more of the country's exports shift from China toward Europe and India because those destinations would be served through East Coast ports. Currently, Trump has maintained high tariffs on China, which responded in kind, but he gave the rest of the world a 90-day reprieve to allow time to negotiate new trade deals.

CSX is one of the nation's largest railroads with tracks crisscrossing the Eastern United States.

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Retail sales rise 1.4% in March as shoppers stock up on big ticket items ahead of tariffs

By ANNE D'INNOCENZIO

AP Retail Writer

U.S. shoppers stepped up their shopping last month, fueled by a spending spree on big ticket items, particularly cars, before President Donald Trump's expansive new tariffs started kicking in.

But analysts were quick to point out that the data wasn't a sign of strength but underscored the extreme economic uncertainty that shoppers face and how they want to get ahead of higher prices.

Retail sales rose 1.4% in March, after rising 0.2% in February, according to the Commerce Department.

Tbe number marked the highest percentage gain since January 2023, when it was 4.1%, according to FactSet.

Retail sales fell 1.2% in January, hurt in part by cold weather that kept more Americans indoors, denting sales at car dealers and most other stores.

Excluding sales at motor vehicle and parts dealers, sales rose 0.5% in March, compared with the previous month.

Sales at motor vehicles and parts dealers rose 5.3%, and the report also underscored strength elsewhere. Sales rose at electronics stores, sporting goods retailers and clothing and accessories stores. Grocery stores and online retailers also saw gains. Restaurants had a 1.8% increase. However, furniture and home furnishings stores posted a decline.

"These are simply blow out numbers on March retail sales where the rush is on like this is one gigantic clearance sale," said Christopher S. Rupkey, chief economist at FWDBonds LLC in a published note.

"Consumers are expecting sharply higher prices the next year and are clearing the store shelves and

picking up bargains while they can. " Daniel Holland of Charlotte, N.C., said he was paying more attention to tariffs after buying his new bike in February from Trek Bicycle Store. "I'm aware of it, especially with bike parts or just anything manufactured overseas," he said Wednesday. "I think right now there's a lot of questions around what could happen and what's directly affected, whether it's just parts or the entire bikes in general," Holland said. "Was I aware of it before buying this bike? Maybe not, but I am going forward for sure."

Economists expect sales will likely fall over the next few quarters.

"With the economy set to cool sharply in the coming months as tariffs take their toll, price-sensitive consumers are poised to become more judicious with their spending and reduce their nonessential purchases,"

EY Senior Economist Lydia Boussour wrote in a note Wednesday. Consumers' confidence has already taken a hit. And a growing number of retailers and suppliers are halting shipments from China as well as pausing orders as they wait to see where the tariffs settle. In some cases, they are canceling orders. The result of the trade wars so far: a baseline tariff on most countries of 10%, with imports from China getting taxed at a combined 145%. Goods from Canada and Mexico face tariffs of up to 25%, while imported autos, steel and aluminum are taxed at that same rate. China retaliated last week with a 125% tariff on U.S. goods.

Early this month, Trump announced sweeping and steep tariffs on nearly all trading partners. But after Trump's U- turn last week that paused the new tariffs on about 60 nations for 90

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days, average U.S. duties remain much higher than a couple of months ago.

Last Friday, the Trump administration announced tariff exemptions on electronics like smartphones and laptops but a few days later said they're only a temporary reprieve.

Against this background, U.S. consumer sentiment plunged in April, the fourth consecutive month of drops, in a seemingly sharp disapproval of Trump's trade wars that have fueled anxiety over possible job cuts and rising inflation.

Analysts say the big retailers will be able to navigate better than the smaller ones, which don't have the clout to absorb extra costs or pressure their suppliers. But it also depends on the type of goods they sell, particularly if they have goods sources from overseas.

Ashley Hetrick, principal and sourcing and supply chain segment leader at accounting firm BDO, noted that stores are more cautious about ordering seasonal items because they

have a shorter shelf life. She said that the canceling of orders hasn't been widespread. Walmart executives pledged last week it will keep delivering low prices as it navigates Trump's escalating trade wars with China.

But the nation's largest retailer told analysts that it's still vulnerable to the challenges and is monitoring the fluid tariff situation. The company told analysts that sales have been volatile.

Amazon CEO Andy Jassy said last week that the company has been doing everything it can to keep prices low for customers,

including bringing in goods early ahead of the barrage of tariffs and negotiating with suppliers. But Jassy told CNBC's Andrew Sorkin Thursday that its network of thirdparty sellers will have to pass on the higher costs to sellers.

Paul Farago, president of Ace Marks, a footwear company in Miami, said that the big tariff bill on Chinese goods has already forced him to pause production on a less expensive version of its Ace Marks brand, which was supposed to be the company's engine of growth. The "diffusion" line, made in China with

Chinese e-commerce sites Temu and Shein say they're raising prices due to tariffs

By MAE ANDERSON AP Business Writer

CHINA-founded e-commerce sites Temu and Shein say they plan to raise prices for U.S. customers starting next week, a ripple effect from President Donald Trump's attempts to correct the trade imbalance between the world's two largest economies by imposing a sky-high tariff on goods shipped from China.

Temu, which is owned by the Chinese e-commerce company PDD Holdings, and Shein, which is now based in Singapore, said in separate but nearly identical notices that their

operating expenses have gone up "due to recent changes in global trade rules and tariffs."

Both companies said they would be making "price adjustments" starting April 25, although neither provided details about the size of the increases. It was unclear why the two rivals posted almostidentical statements on their shopping sites.

Since launching in the United States, Shein and Temu have given Western retailers a run for their money by offering products at ultra-low prices, coupled with avalanches of digital or influencer advertising.

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registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 10th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

The 145% tariff Trump slapped on most products made in China, coupled with his decision to end a customs exemption that allows goods worth less than $800 to come into the U.S. duty-free, has dented the business models of the two platforms.

E-commerce companies have been the biggest users of the widely used exemption. Trump signed an executive order this month to eliminate the "de minimis provision" for goods from China and Hong Kong starting May 2, when they will be subject to the 145% import tax.

As many as 4 million lowvalue parcels — most of

synthetic material, is priced at around $120. Farago estimated that with the new tariffs, the shoe line will have to be priced at around $300, the same price as the expensive leather version made in Italy. The diffusion line was developed three years ago, and it had already reached 10% of its overall business. Farago had hoped that by 2026, it would be 30% to 40% of the company's total sales. Farago said he will have to disappoint a lot of his store clients and shoppers who are looking for affordable footwear. The new shoes were supposed to be shipped in June or July.

them originating in China — arrive in the U.S. every day under the soon-to-be canceled provision.

U.S. politicians, law enforcement agencies and business groups lobbied to remove the long-standing exemption, describing it as a trade loophole that gave inexpensive Chinese goods an advantage and served as a portal for illicit drugs and counterfeits to enter the country.

Shein sells inexpensive clothes, cosmetics and accessories, primarily targeting young women through partnerships with social media influencers. Temu, which promoted its goods through online ads, sells a wider array of products, including household items, humorous gifts and small electronics.

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CUSTOMERS shop televisions at a retail store in Glenview, Ill., Thursday, April 3, 2025.

Photo:Nam Y. Huh/AP

How war, money and the quest for discovery entwined the US government

By ADAM GELLER AP National Writer

THE showdown between the Trump administration and Harvard University is spotlighting bare-knuckled politics and big dollar figures. But in the battle of the moment, it's easy to lose sight of a decadeslong alliance between the U.S. government and the nation's most prominent universities, forged to fight a world war.

For more than 80 years, that interdependence has been prized by academic leaders and politicians of both parties as a paragon for American discovery and innovation.

"In some ways I think it's a core part of the story of contemporary America," said Jason Owen-Smith, a University of Michigan professor who studies the scope of research on the nation's campuses. "Harvard's an exemplar, but it's not the only one."

That explains the more than $2 billion in multiyear grants and contracts to Harvard frozen this week by administration officials after the school defied their demands to limit activism on campus.

A link that dates to World War II

The grants are testament to a system that has its roots in the early 1940s, when the U.S. government began securing cutting edge research through a singular partnership. Federal officials provided money and oversight; institutions, led by big state and private universities, used those billions of dollars to plumb the unknowns of science and technology, while training new generations of researchers.

The partnership delivered wartime innovations including the development of radar at the Massachusetts Institute of Technology and, decades later, the birth at Stanford University of what became Google.

Now the Trump administration is trying something many other chief executives have avoided: imposing ideology on a partnership that has long

balanced accountability with independence.

"A lot of Americans are wondering why their tax dollars are going to these universities when they are not only indoctrinating our nation's students, but also allowing such egregious illegal behavior to occur," White House press secretary Karoline Leavitt said during a briefing with reporters this week.

But longtime observers of the partnership between government and universities see the administration's actions very differently.

"It's never been politicized the way the Trump administration is doing it because it's always had bipartisan support," says Roger Geiger, a historian of higher education who is retired from Penn State. "It's unusual that we don't see that support now."

Cutting off Harvard follows similar moves at Columbia and other prominent universities to force compliance. At the same time, Johns Hopkins University surrendered more than $800 million in federal grants for health and medical programs after the administration began dismantling the U.S. Agency for International Development and cut funding by the National Institutes of Health.

Behind the dollar figures

The dollar figures for use in domestic laboratories and programs overseas might seem surprising to a public most familiar with big universities as centers of teaching and student life. But to make sense of the current battle, it helps to understand how government and universities came to be so interdependent.

A century ago, a much smaller community of research universities relied largely on private funding. But as U.S. officials scrambled to prepare for entry into World War II in 1940, a former MIT dean, Vannevar Bush, pitched President Franklin D. Roosevelt on the critical need to marshal defense research by partnering government with scientists at universities and other institutions.

and universities

"Urgency in the 1940s was really the overriding motivation," said G. Pascal Zachary, author of a biography of Bush. "But the structure proved durable."

Bush's agency oversaw the quest for the first nuclear weapons, developed at a laboratory administered by the University of California. And when fighting ended, he prevailed on Roosevelt to expand the research partnership to ensure national security, foster scientific and medical discovery, and grow the economy.

"It is only the colleges, universities, and a few research institutes that devote most of their research efforts to expanding the frontiers of knowledge," Bush wrote in a 1945 report to Roosevelt, laying out his plan.

Federal funding for research remained limited, however, until the Soviet Union launched the first artificial satellite in 1957. Determined to catch up, U.S. lawmakers approved a stream of funding for university research and training of new scientists.

"We were locked into the Cold War, this battle with the Soviet Union,

that was in many ways a scientific and technological battle," said Jonathan Zimmerman, an education historian at the University of Pennsylvania.

Research schools, which number between 150 and 200, used the inflow of federal dollars to build labs and other infrastructure. That growth came as enrollment climbed, with the government's paying for veterans to attend college through the G.I. Bill and measures in the 1960s to help poorer students.

Scratchiness has been part of the relationship from the outset

The partnership between government and universities has always come with a built-in tension.

Federal officials are at the helm, awarding money to projects that meet their priorities and tracking the results. But it is explicit that government officials do not control the work itself, allowing researchers to independently pursue answers to questions and problems, even if they don't always find them.

"The government gets to basically treat a generally decentralized national

system of universities as a pay-as-you-go resource to get problems solved," Michigan's Owen-Smith said.

With that understanding, universities have become the recipient of about 90 percent of all federal research spending, taking in $59.6 billion in 2023, according to the National Center for Science and Engineering Statistics.

That accounts for more than half the $109 billion spent on research at universities, with most of the rest coming from the schools themselves, state and local governments and nonprofits.

Johns Hopkins has been the single largest grantee, accounting for $3.3 billion in federal spending in 2023. Federal dollars for research at the University of Washington, Georgia Institute of Technology, UC San Diego and Michigan also exceeded more than $1 billion each. Harvard received about $640 million.

Moves by the Trump administration to close agencies and impose changes on campuses present universities with an unprecedented threat.

Tuesday, April 15, 2025, in Cambridge, Mass.

"Generations of Hopkins researchers have brought the benefits of discovery to the world," the school's president, Ronald J. Daniels, wrote recently.

"However, a fast and farreaching cascade of cuts to federal research funding across higher education is badly fraying this longstanding compact."

The partnership is supposed to be protected by guardrails. Rules specify that officials who believe a school is violating the law can't just cut funding but must instead present details of alleged violations to Congress.

But the Trump administration, bent on making schools change policies designed to encourage diversity on campuses and crack down on protests, is ignoring those rules, Zimmerman said. Funding cuts will likely put pressure on schools' remaining resources, leaving them with less money for things like financial aid to students of modest means, he said. But the bigger danger is to academic freedom of schools to teach and do research as they see fit.

THE HARVARD University logo is displayed on a building at the school,

Photo:Charles Krupa/AP

WORLD TRADE ORGANIZATION

SAYS GLOBAL TRADE COULD SLIDE THIS YEAR BECAUSE OF TRUMP’S TARIFF POLICIES

THE World Trade Organization says the volume of trade in goods worldwide is likely to decrease by 0.2% this year due to U.S. President Donald Trump's shifting tariff policies and a standoff with China, but it would take a more severe hit if Trump carries through on his toughest "reciprocal" tariffs.

The decline in trade will be particularly steep in North America even without the stiffest tariffs, the global trade forum said Wednesday, with exports there this year expected to fall by 12.6% and imports by 9.6%.

The WTO based its report on the tariff situation as of Monday. Initially, 2025 and 2026 were expected to have continued expansion of world trade, but Trump's trade war forced WTO economists to substantially downgrade their forecast, the forum said.

Trade in goods worldwide would slump by 1.5% if Trump follows through on his stiffest tariffs on most nations, due to the uncertainty unsettling businesses.

Trump suspended the toughest set of tariffs for

90 days earlier this month so more than 70 countries have a chance to address U.S. trade concerns. Meanwhile, he is increasing taxes on Chinese imports to 145% and engaging in a lengthy back and forth with Canada and Mexico about tariffs on their goods.

Despite the 90-day pause, "the enduring uncertainty threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular," WTO Director-General Ngozi Okonjo-Iweala said in a statement.

"Our simulations show that trade policy uncertainty has a significant dampening effect on trade flows, reducing exports and weakening economic activity," WTO chief economist Ralph Ossa said in the statement. "Moreover, tariffs are a policy lever with wide-ranging and often unintended consequences. In a world of growing trade tensions, a clear-eyed view of those trade-offs is more important than ever."

BURNING COAL LEAVES DANGEROUS WASTE. TRUMP’S EPA EYES LOOSER RULES FOR HANDLING IT

By MICHAEL PHILLIS Associated Press

IN 2022, federal officials rebuked a major coal plant next to the Ohio River for letting coal waste — in a pile so big it could fill the Dallas Cowboys' football stadium twice over — threaten groundwater with heavy metal pollution. That coal ash, the waste from burning coal, was at risk of leaching into groundwater and spreading toxins, officials said. It was part of a broad crackdown by the Biden administration on coal ash aimed at keeping arsenic and lead out of well water, lowering cancer rates and avoiding disastrous spills.

In January, however, the coal industry including Ohio's targeted Gen. James Gavin Power Plant wrote to President Donald Trump's nominee to run the Environmental Protection Agency, asking for weaker standards. Less than two months later, the EPA announced it would consider loosening the rules as part of a historic deregulatory push that also targeted

plant wastewater and coal's considerable greenhouse gas emissions. Collectively, the industry hopes the change in direction — and deemphasis on climate change as a threat — lowers costs and delays a surge of plant retirements.

"We just feel like the last administration, all of these regulations were really designed to force the closure of coal plants," said Michelle Bloodworth, president and CEO of industry group America's Power. Now, as data centers and other needs cause electricity demand to soar, Bloodworth says coal power is increasingly essential.

Environmentalists worry about coal ash and its heavy metals in part because there's so much of it – more than 100 million tons is produced each year, much of which sits near lakes and rivers in sprawling disposal sites. Some is reused, but a lot is stored near coal plants in coal ash ponds that may not have a lining to keep it from leaching into groundwater. It can be disastrous when companies fail to keep that

“It

waste in place. In 2008, a huge dike burst at a Tennessee coal plant. That released more than a billion gallons of coal ash, polluting rivers, toppling homes and shortening the lives of many cleanup workers who spent months exposed to its toxicity.

That disaster helped lead to the first federal standards for coal ash disposal in 2015. Those included requirements for companies to line new storage sites, conduct water monitoring and ensure many leaky ponds closed safely, often requiring the material to be moved elsewhere.

"It contains a lot of important protections, but it didn't apply to all the coal ash that utilities were managing," said Nick Torrey, an attorney with the nonprofit Southern Environmental Law Center. Old coal ash piles at dozens of shuttered plants weren't included. They are even more likely to be unlined and unsafe, according to the EPA. A federal appeals court in 2018 said old disposal areas at inactive sites threatened to catastrophically fail and pollute groundwater. The Biden administration wrote new rules to ensure those close properly. The rule also targeted the disposal of waste outside designated disposal areas.

The Biden administration also turned a skeptical eye toward states that wanted to manage their own coal ash permitting programs, and rejected Alabama's request to do so, saying the state allowed coal ash sites to close without sufficiently protecting groundwater.

Now, EPA Administrator Lee Zeldin says the agency will work closely with states to help them take over permitting. Environmental groups are worried.

"They are basically just going to rubber-stamp the applications," said Gavin Kearney, an attorney with the nonprofit Earthjustice.

And the Trump administration will weaken enforcement of some current rules. The Biden administration made enforcing coal ash rules a priority, sending officials to examine more than 100 sites. But new enforcement instructions in March said that effort was "motivated largely by environmental justice considerations," a priority of the last administration aimed at improving conditions in polluted areas that are often majorityBlack or Hispanic.

The updated guidance says enforcement at active

power plants must focus on "imminent threats to human health," making no mention of shuttered sites.

"The memo leaves room for EPA to enforce against active or inactive sites, but ... I will be surprised if they do," Kearney said.

The agency also promised to revisit the Biden administration's rule and consider extending deadlines for safely closing sites and water monitoring.

One site the Biden administration's rule targeted was the Michigan City Generating Station in Indiana, by Lake Michigan, and close to communities that are generally poorer.

The decades-old coal plant is expected to be retired in the next few years, and closing means dealing safely with its coal ash. Much of it has already been trucked 40 miles away for safe disposal.

But recent groundwater monitoring found elevated levels of arsenic and other metals. Local activists are worried about land created at the site made partially of coal ash and separated from Lake Michigan by a seawall they say is fragile. The 2024 rules set deadlines for cleanup.

"How many years are we going to have to wait ultimately for this reprieve, for this closure to happen?" said Ashley Williams, executive director of Just Transition Northwest Indiana, a nonprofit community group.

The plant owner, Northern Indiana Public Service Company, a unit of NiSource, said they were looking at any impact possible changes would have on its plans to safely close.

Owners and proposed buyers of the Gavin plant either declined or didn't respond to requests for comment.

The EPA estimated Biden's rules would cost the industry as much as $240 million annually. America's Power says forcing plants like Gavin to remove coal ash that sits below the water table that they don't believe is a significant threat to the area's groundwater and drinking water is extremely costly and can force shutdowns.

Bloodworth of America's Power praised the change in direction.

"If there are three legs of the stool — affordability, reliability and sustainability — the (Biden) administration went way too far" and failed to properly prioritize reliability, Bloodworth said.

NGOZI OKONJO-IWEALA, left, Director-General of the WTO talks to the media about this WTO's "Global Trade Outlook and Statistics - April 2025" during a press conference at the headquarters of the World Trade Organization in Geneva, Switzerland, Wednesday, April 16, 2025.

Photo:Martial Trezzini/AP

A HOME sits near the Gen. James Gavin Power Plant, a coal-fired power plant, on Monday, April 14, 2025, in Cheshire, Ohio.

Photo:Joshua A. Bickel/AP

Nick Torrey

US stocks drop as Nvidia slides and the fog of Trump's trade war thickens

By STAN CHOE AP Business Writer

U.S. stocks fell Wednesday after Nvidia warned new restrictions on exports to China will chisel billions of dollars off its results, while companies around the world said President Donald Trump's trade war is clouding forecasts for how they and the economy will do this year.

The S&P 500 sank 2.2% after falling as much as 3.3% earlier. Such an amount would have vied for one of its worst losses in years before the historic, chaotic swings that have upended Wall Street in recent weeks.

The Dow Jones Industrial Average dropped 699 points, or 1.7%, and the Nasdaq composite sank a market-leading 3.1%.

Losses accelerated after the head of the Federal Reserve said again that Trump's tariffs appear to be bigger than it expected, which could in turn slow the economy and raise inflation more than it had earlier thought. But Jerome Powell also said again that the Fed will need more time before deciding whether to lower interest rates, which could help the economy but make inflation worse, or to do the opposite.

"All of this is highly uncertain," Powell said.

"We're thinking now, really before the tariffs have their effects, (about) how they might affect the economy. That's why we're waiting really to see what the policies ultimately are, and then we can make a better

assessment of what the economic effects will be."

Some companies are already seeing big effects because of changes from Washington.

Nvidia dropped 6.9% after it said the U.S. government is restricting exports of its H20 chips to China, citing worries that they could be used to build a supercomputer. The restrictions could mean a hit of $5.5 billion to Nvidia's results for the first quarter, covering charges related to inventory and purchase commitments.

Advanced Micro Devices sank 7.3% after it said U.S. limits on exports to China for its own chips may mean a hit of up to $800 million for inventory and other charges.

In Amsterdam, ASML's stock sank 5.2%. The Dutch company, whose machinery makes chips, said demand for artificial-intelligence technology is continuing to drive growth. "However, the recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while," CEO Christophe Fouquet said.

The uncertainty around Trump's trade war has been scrambling plans for companies across industries and around the world. It's so dynamic that United Airlines gave two different financial forecasts for how it may perform this year, one if there's a recession and one if not.

The airline said it made the unusual move to give twin forecasts because it believes it's "impossible to

META CEO MARK ZUCKERBERG WRAPS UP TESTIMONY IN ANTITRUST CASE

By BRIAN WITTE Associated Press

META CEO Mark Zuckerberg emphasized in federal court on Wednesday that he bought Instagram and WhatsApp because he saw value in the companies — not to take out competitors, as the Federal Trade Commission alleges in a historic antitrust trial.

Zuckerberg took the stand for the third day in the trial, wrapping up his testimony as the first witness Wednesday afternoon. He took questions from Meta attorney Mark Hansen, who has argued that his client hardly has a monopoly in social media, as the FTC claims, and still faces stiff global competition.

Hansen focused some of his questioning on emails sent by Zuckerberg and his associates that the FTC cited in earlier testimony to illustrate the Facebook founder's alarm over the growth of Instagram and his sense that he needed to neutralize its threat.

Zuckerberg said he's very focused on inventing new things, and understanding what other people are creating is a big part of the process. At any given point in his company's history, he said, similar tones of concern could be found in emails about what other companies were doing better than his.

"This is my job," Zuckerberg said. "I need to understand what is going on, and I need to push our teams to move quickly" to learn about what is going on in a very competitive market.

Hansen questioned Zuckerberg about competition,

predict this year with any degree of confidence."

United's stock finished roughly flat even though it reported a stronger profit for the latest quarter than analysts expected.

Many investors are bracing for a possible recession because of Trump's tariffs, which he has said he hopes will bring manufacturing jobs back to the United States and trim how much more it imports from other countries than it exports. A survey of global fund managers by Bank of America found expectations for recession are at the fourthhighest level in the last 20 years.

The World Trade Organization said Wednesday it expects tariffs to cause a 0.2% decline in the volume

Hansen noted that the FTC is making similar claims about the acquisition of the messaging app WhatsApp: that Zuckerberg was afraid of the company's potential.

particularly from TikTok, the popular social media site owned by Beijingbased company ByteDance, and the the growth of the video-sharing platform YouTube, which is owned by Alphabet. Zuckerberg testified that people spend more time on YouTube than on Facebook and Instagram combined.

While Hansen noted that the FTC doesn't consider YouTube to be a Meta competitor — because it doesn't have the same friend-sharing technology as Facebook — Zuckerberg said YouTube has built in ways to share videos.

The FTC contends Meta has used a monopoly in its technology that facilitates connecting with friends and family to generate enormous profits as consumer satisfaction has dropped. The case could force the tech giant to break off Instagram and WhatsApp, startups it bought more than a decade ago that have since grown into social media powerhouses.

Daniel Matheson, the FTC's attorney who questioned Zuckerberg, has repeatedly brought up his own words in emails to associates before and after the acquisition of Instagram to try to show Zuckerberg was more interested halting Instagram's alarming growth than improving the product.

Under questioning by Hansen, Zuckerberg insisted that he had no intention of acquiring Instagram only to slow its development and end a threat. He said the focus was on "having it run as an independent brand."

"It's something I thought about," Zuckerberg said, noting the app's formidable capabilities, but he added that he later learned not to be worried because the owners didn't share the same vision or direction.

He said his interest in buying it was "the usage of it."

of world merchandise trade for 2025. That's if the tariff situation remains as it was on Monday. Trade could shrink by 1.5% this year if conditions worsen, the WTO said.

The "enduring uncertainty threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular," Director-General Ngozi Okonjo-Iweala said.

One U.S. company that moves products around the continent, J.B. Hunt Transport Services, tumbled 7.7% for one of Wall Street's sharper losses, even though it reported slightly stronger profit for the latest quarter than analysts expected.

"I thought the app was important and valuable," Zuckerberg said.

The trial, which is slated to last weeks, will feature other Big-Tech figures. After Zuckerberg, Sheryl Sandberg, Facebook's former chief operating officer, took the stand.

The trial is one of the first big tests of President Donald Trump's FTC's ability to challenge Big Tech. The lawsuit was filed against Meta — then called Facebook — in 2020, during Trump's first term. It claims the company bought

All told, the S&P 500 fell 120.93 points to 5,275.70. The Dow Jones Industrial Average dropped 699.57 to 39,669.39, and the Nasdaq composite sank 516.01 to 16,307.16.

Tariffs could also drive up inflation, at least temporarily, by pushing U.S. importers to pass along the higher costs to their customers. Fears about such price hikes drove a spending binge last month, and sales at U.S. retailers accelerated by more than economists expected. Economists said much of that was likely because of U.S. shoppers rushing to buy automobiles, electronics and other items before their prices could rise due to possible tariffs.

Instagram and WhatsApp to squash competition and establish an illegal monopoly in the social media market.

Facebook bought Instagram — which was a photo-sharing app with no ads — for $1 billion in 2012.

Instagram was the first company Facebook bought and kept running as a separate app. Until then, Facebook was known for smaller "acqui-hires" — a popular Silicon Valley deal in which a company purchases a startup as a way to hire its talented workers,

Recent surveys have shown U.S. households are feeling more pessimistic about the economy because of tariffs, and a fear is that it could lead them to pull back on their spending eventually, which could cause a recession by itself.

Treasury yields eased in the bond market, taking a leg lower following the comments from the Fed's chair. The yield on the 10-year Treasury fell to 4.28% from 4.35% late Tuesday and from 4.48% at the end of last week. It's another notable move for the bond market and somewhat of a return to form after an unusual rise in yields last week rattled investors and Trump. Treasury yields typically fall when investors are worried about the economy, and last week's climb raised concerns that the trade war may be causing investors to second-guess the reputation of U.S. government bonds as one of the world's safest possible investments.

In stock markets abroad, indexes fell across much of Asia and were mixed in Europe.

Stocks dropped 1.9% in Hong Kong, 1% in Tokyo, 1.2% in Seoul and 0.1% in Paris. The FTSE 100 rose 0.3% in London after the government said inflation in the U.K. fell for the second month running in March, largely as a result of lower gas prices.

then shuts the acquired company down. Two years later, it did it again with the messaging app WhatsApp, which it purchased for $22 billion.

WhatsApp and Instagram helped Facebook move its business from desktop computers to mobile devices, and to remain popular with younger generations as rivals like Snapchat (which it also tried, but failed, to buy) and TikTok emerged.

U.S. District Judge James Boasberg is presiding over the case.

SPECIALIST Gennaro Saporito works on the floor of the New York Stock Exchange, Wednesday,

April 16, 2025.

Photo:Richard Drew/AP

DOGE wanted to assign staff to the nonprofit Vera Institute of Justice because it got federal funds

By THALIA BEATY Associated Press

THE nonprofit Vera Institute of Justice says staff from Elon Musk's Department of Government Efficiency contacted them to assign a team to the organization and told them they planned to similarly install teams with all nonprofits receiving funds appropriated by Congress.

Nick Turner, president of the New York-based criminal justice nonprofit, said Wednesday the nonprofit's attorneys asked the DOGE staffers what legal basis they had to investigate a nonprofit and informed the staffers that the U.S. Department of Justice recently terminated grants to Vera. The DOGE staffers then withdrew their request to assign a team, according to a transcript of the call provided by Vera.

The White House and Justice Department did not immediately return requests for comment.

Vera, which has an annual budget of around $45 million that mostly comes from private funders, advocates for reducing the number of people imprisoned in the

U.S. They consult with law enforcement and public agencies to design alternative programs to respond to mental health crises or traffic violations, and also support access to lawyers for all immigrants facing deportation. Nonprofit advocates say DOGE's request threatens the basic freedoms of civil society.

"It would clearly undermine a core tenet of civil society: its independence from the state," said Benjamin Soskis, a senior research associate at the Urban Institute. "Regulatory oversight is one thing, but this would seem to go into much further, darker territory, where the government threatens the functioning of nonprofits that it does not agree with."

Vera's president said in an interview it is speaking publicly about DOGE's request so other nonprofits can prepare.

"I think it is a terrifying harbinger of what might be a DOGE agenda to start infiltrating nonprofits that receive federal funding," Turner said. "It could be a misunderstanding. It could be an aggressive

overreach," but it seemed clear that DOGE believed receiving any federal funding would be a reason to install a team at a nonprofit.

Not the first threat from the White House to nonprofits

Diane Yentel, the president and CEO the National Council of Nonprofits, called the request from DOGE to Vera a blatant abuse of power that should alarm all Americans.

"This action by DOGE sets a dangerous precedent, leaving any recipient of federal funding — nonprofit, for-profit, and individuals alike — vulnerable to the whims of this destructive group," Yentel said in a statement. Her organization sued to prevent a freeze of all federal funding.

In February, the White House directed federal agencies to review all funding for nonprofits because many "actively undermine the security, prosperity,

and safety of the American people."

The Trump administration has also sought to cancel other funding previously allocated by Congress and awarded to nonprofits, though the courts have paused some of those actions.

DOGE has also taken control of the U.S. Institute of Peace, an independent nonprofit created and funded in part by Congress that worked to promote peace and security around the world. Employees and board members of USIP have sued the administration, arguing that the nonprofit is independent and not a part of the executive branch.

DOGE staffers referenced USIP as an example of DOGE assigning a team to a nonprofit that receives Congressional funds, according to the call transcript provided by Vera. Many nonprofits receive federal funding

The federal government offers hundreds of billions of dollars in funding to nonprofit organizations in every state.

Researchers at the Urban Institute found that 103,475 nonprofits received $267 billion in government grants in 2021, according to an analysis of nonprofit tax forms. The analysis excludes the many small nonprofits with few assets that file less detailed tax forms.

Vera said the terminated grants from the Justice Department totaled around $5 million over three years. Those funds would have provided sign language interpretation for victims of crimes who are deaf, helped to develop responses to human trafficking and changed the way prosecutor offices work to reduce the number of people entering the legal system.

The Justice Department notified Vera it terminated the grants because it had change its priorities to "more directly supporting certain law enforcement operations, combatting violent crime, protecting American children, and supporting American victims of trafficking and sexual assault, and better coordinating law enforcement efforts at all levels of government."

MARINE FORECAST

ELON Musk flashes his T-shirt that reads “DOGE” to the media as he walks on South Lawn of the White House, in Washington, March 9, 2025. Photo:Jose Luis Magana/AP