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Donald Trump at his desk in the
Oval Office – as a nutcracker doll.

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The idea from the German 
company Steinbach Volkskunst 

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has been a huge 
hit in the United States.

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The doll costs 379 dollars, but 
that price could soon climb sharply 

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due to looming tariffs 
imposed by the real-life US president.

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That's a big problem 
for the manufacturer:

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More than 95 percent of 
its production is sold in the US.

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"A 20 percent tariff hike means the
price tag will be above 400 dollars,

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and some customers
might think that’s too much.

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370 is already a lot, 
and then adding 20 percent more, 

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whether we’ll lose 
customers, that’s the big question."

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In the toy-making village of 
Seiffen in the Ore Mountains, 

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wooden figures, toys, 
Christmas pyramids — and the world-famous 

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candle arches known as 
Schwibbögen — are sold on every corner.

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More than 120 small and large
manufacturers operate in this region.

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In Seiffen, there is even 
a school for wooden toy makers, 

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where around 50 apprentices 
are currently learning the craft.

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Frederic Günther is 
a toy maker himself 

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and the head of 
the Association of Ore Mountain Artisans.

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The US market is the most important
for all manufacturers worldwide.

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"We’ve had several dealers 
in the USA who tried to get 

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a 20 percent discount 
guaranteed by our manufacturers.

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That obviously doesn’t work.

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In the end, what will happen is 
that everything will be exported, 

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the 20 percent 
extra tariff will be added,

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and then at Christmas time, 
we’ll see whether the prices still work 

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in that market or not."

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The head of Steinbach Volkskunst is 
in Seattle, meeting customers at a trade fair.

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He says the impact of tariffs on 
EU imports is not yet fully understood

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by customers 
and dealers in the US.

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"In the worst-case scenario –
speaking for the entire industry – it

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could mean job
cuts, that would be the worst case.

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If you no longer produce 
enough or sell what you produce, 

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then you have to cut costs.

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And the major cost in 
our industry is, of course, labor."

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All of Rico Paul's 
nutcrackers are handmade.

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If the tariffs take effect, 
he may be forced to let go

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of some of his staff.

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However, the 35 employees 

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don’t want to let the debate 
over tariffs drive them crazy:

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They see the recently 
announced 90-day delay

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as a positive sign.