AP PHOTOS: Trump's tariffs could be tough to crack for a German nutcracker maker focused on the US

MARIENBERG, Germany (AP) — U.S. President Donald Trump’s tariffs threaten to become a tough nut to crack in an unlikely place — a small Germany company producing painstakingly hand-crafted nutcrackers that are snapped up by American collectors.

In a factory nestled deep in the hills of eastern Germany, craftspeople put together classic fare such as a variety of Santas, Scrooge and the Mad Hatter — as well as American-themed items like Uncle Sam, the Statue of Liberty and Mickey Mouse. The company, Steinbach Volkskunst, also makes collectibles like a coronation-themed tribute to Britain’s King Charles III.

This week, a limited-edition 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.

Steinbach Volkskunst sells more than 90% of what it makes to the United States. It is looking at ways to lessen the impact of tariffs, but can only change so much. The U.S. initially imposed a 20% tariff on goods from the European Union, but the administration suspended that for 90 days while leaving a baseline 10% tariff in place.

The “made in Germany” label is important to the company's appeal and the focus on the U.S. market is deeply embedded in the company’s history. Its manager says it will “keep faith with America.”

A man walks on the road near the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

Rico Paul, manager and owner of the Steinbach-Volkskunst nutcracker factory, poses for a photograph inside his factory, in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

Fabrics for nutcracker costumes are stored on the shelf at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

A woman works on nutcrackers of a cowboy at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

A man works on a lathe in the carpentry of the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

From right, nutcrackers showing Britain's King Charles III, Statue of Liberty and Uncle Sam are displayed at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

An Uncle Sam nutcracker with an American flag, center, stands between other nutcrackers at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

Nutcrackers are displayed at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

A nutcracker commemorating the coronation of Britain's King Charles III, right, stands alongside other nutcrackers at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

The desk of the limited-edition nutcracker titled "Resolute Desk of the President," featuring a seated figure signing a "presidential proclamation," is seen at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

A woman combs the hair on a nutcracker titled "Resolute Desk of the President," featuring a seated figure signing a "presidential proclamation," at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

A woman fixes a coat on a nutcracker titled "Resolute Desk of the President," featuring a seated figure signing a "presidential proclamation," at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

The limited-edition nutcrackers titled "Resolute Desk of the President," featuring a seated figure signing a "presidential proclamation," is seen at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

Two limited-edition nutcrackers titled "Resolute Desk of the President," featuring a seated figure signing a "presidential proclamation," are seen on a table at the Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

A 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 Steinbach-Volkskunst nutcracker factory in Marienberg, Germany, Tuesday, April 15, 2025. (AP Photo/Markus Schreiber)

WASHINGTON (AP) — The U.S. Coast Guard said Friday it's still searching for people in the eastern Pacific Ocean who had jumped off alleged drug-smuggling boats when the U.S. military attacked the vessels days earlier, diminishing the likelihood that anyone survived.

Search efforts began Tuesday afternoon after the military notified the Coast Guard that survivors were in the water about 400 miles (650 kilometers) southwest of the border between Mexico and Guatemala, the maritime service said in a statement.

The Coast Guard dispatched a plane from Sacramento to search an area covering more than 1,000 miles (1,600 kilometers), while issuing an urgent warning to ships nearby. The agency said it coordinated more than 65 hours of search efforts, working with other countries as well as civilian ships and boats in the area.

The weather during that time has included 9-foot seas and 40-knot winds. The U.S. has not said how many people jumped into the water, and, if they are not found, how far the death toll may rise from the Trump administration's monthslong campaign of blowing up small boats accused of transporting drugs in the region.

The U.S. military said earlier this week that it attacked three boats traveling along known narco-trafficking routes and they “had transferred narcotics between the three vessels prior to the strikes.” The military did not provide evidence to back up the claim.

U.S. Southern Command, which oversees the region, said three people were killed when the first boat was struck, while people in the other two boats jumped overboard and distanced themselves from the vessels before they were attacked.

The strikes occurred in a part of the eastern Pacific where the Navy doesn’t have any ships operating. Southern Command said it immediately notified the U.S. Coast Guard to activate search and rescue efforts for the people who jumped overboard before the other boats were hit.

Calling in the Coast Guard is notable because the military drew heavy scrutiny after U.S. forces killed the survivors of the first attack in early September with a follow-up strike to their disabled boat. Some Democratic lawmakers and legal experts said the military committed a crime, while the Trump administration and some Republican lawmakers say the follow-up strike was legal.

There have been other survivors of the boat strikes, including one for whom the Mexican Navy suspended a search in late October after four days. Two other survivors of a strike on a submersible vessel in the Caribbean Sea that same month were sent to their home countries — Ecuador and Colombia. Authorities in Ecuador later released the man, saying they had no evidence he committed a crime in the South American nation.

Under President Donald Trump's direction, the U.S. military has been attacking boats in the Caribbean Sea and eastern Pacific since early September. As of Friday, the number of known boat strikes is 35 and the number of people killed is at least 115, according to numbers announced by the Trump administration.

Trump has justified the boat strikes as a necessary escalation to stem the flow of drugs into the United States and asserted that the U.S. is engaged in an “armed conflict” with drug cartels.

Along with the strikes, the Trump administration has built up military forces in the region as part of an escalating pressure campaign on Venezuelan President Nicolás Maduro, who has been charged with narco-terrorism in the United States.

President Donald Trump speaks during a news conference with Israel's Prime Minister Benjamin Netanyahu at Mar-a-Lago, Monday, Dec. 29, 2025, in Palm Beach, Fla. (AP Photo/Alex Brandon)