Episode Transcript
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0:00
One way to tell the story of
0:02
a trade war is through a curved
0:04
piece of silicone called the Frywall. Frywall
0:06
keeps the sizzle in the pan and
0:09
the splatter off of you and your
0:11
stove top. That is the inventor of
0:13
the Frywall, yet ear riner on Shark
0:16
Tank back in 2018. Reiner priced out
0:18
what it would cost for him to
0:20
produce his invention in the US and
0:22
figured to turn a profit, he'd have
0:25
to sell a maid in the USA
0:27
Frywall for about 80 bucks. Yeah, it's
0:29
really hard to sell a splatterguard for
0:32
that much money. Even the best
0:34
splatterguard for that much money. Even
0:36
the best splatterguard in the world.
0:38
So he makes it in China,
0:40
which allows him to sell it
0:42
for about $25. And he says
0:44
that money gets spread around to
0:46
many parts of the US economy.
0:48
It goes to the US Postal
0:50
Service, which provides my quote unquote
0:52
free shipping. If I sell on
0:54
Amazon, it goes to Amazon, it's
0:56
warehouse workers. I also have to
0:58
pay my patent attorney so that
1:00
my patent is protected and I can't
1:02
get ripped off. It has to go
1:04
to PR, it has to go to
1:07
marketing. It has to go to the
1:09
software firms that I use to operate
1:11
and run by business. But now President
1:14
Trump has put a 145% tariff on
1:16
goods from China. At least that's the
1:18
number as we record this Thursday afternoon.
1:21
It's been a moving target. I've worked
1:23
hard to have a stable price on
1:25
my product for almost 10 years. And
1:27
now I'm looking at a situation where
1:30
I'm going to have to raise it
1:32
by 20 maybe 25% maybe more. I'm not
1:34
sure if I still have a business. And
1:36
so if that's going to be the case
1:38
for the foreseeable future for the next four
1:41
years, where does that leave you? It leaves
1:43
me making plans from week to week,
1:45
which is not the way that they
1:47
teach you to run a business, either
1:49
at your parents' table or at business
1:51
school. And there are a lot
1:53
of yet-year riners out there. Business
1:55
owners riding the roller coaster as
1:57
Trump's tariffs have been rolled out.
1:59
it up and partially walked back.
2:01
We're going to have to scale
2:04
back a lot of innovation. We
2:06
just noticed our first invoice that
2:08
had a tariff line on it. I
2:10
have hopes that tariffs will help us,
2:13
but that can't be the
2:15
end game. Consider this. Trump's
2:17
tariff plans affect nearly every
2:19
company in America. We'll hear
2:21
from a few business owners about
2:24
what it means for them. From
2:26
NPR, I'm Ari Shapiro. Support
2:32
Support for NPR and the following
2:34
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3:00
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that represent the voices in
3:23
every corner of the country.
3:25
Hear the bigger picture every
3:27
day on NPR. It's
3:30
considered this from
3:32
NPR. Lisa Winton runs
3:35
exactly the type of
3:37
business that the Trump
3:39
administration says its tariffs
3:41
are supposed to help.
3:43
I'm a small manufacturer in
3:45
Georgia. and I produce machinery.
3:48
Winton Machine Company makes metal
3:50
parts that go into everything from
3:52
refrigerators to lawn chairs. And most
3:54
of the company's supply chain is
3:56
in the US. But some of
3:58
Lisa Winton's distributors get... parts from
4:00
China and they've started passing along
4:03
the cost of tariffs to her.
4:05
So I have to purchase, I have to
4:07
place my order and then when I place
4:09
my order they'll let me know what my
4:11
tariff be is. Oh so you might say
4:13
I've got $500 to spend on this or
4:15
$5,000 or whatever and then when the bill
4:17
comes in you see tacked on to it
4:19
is a tariff fee that could put this
4:21
way outside of your budget. You just don't
4:23
know. I don't know. It's uncertainty.
4:25
And, you know, with uncertainty also
4:27
goes, we ship all over the
4:30
world. So if there's additional tariffs
4:32
put on my machinery to export,
4:34
that's going to be very painful.
4:36
Have you heard from anyone who
4:38
has said, you know what, I was
4:41
going to buy from China, but given
4:43
the situation with the tariffs, I think
4:45
I would rather buy from Witten machine
4:47
instead. Like, is this going to help
4:50
you in that respect? We do
4:52
benefit from... manufacturers that
4:54
say I want to buy American-made machinery.
4:56
There's just so much unknown right now
4:58
and I think that's the most difficult
5:01
thing to make decisions for your company
5:03
financially when you just don't know all
5:05
the pieces of the puzzle. I hear
5:07
a lot of caution in your voice
5:09
but I can't quite tell whether
5:11
you're cautiously optimistic or cautiously pessimistic
5:14
right now. I think the glass is half full?
5:16
and I've taken a few sips. Some
5:18
businesses have to worry about tariffs
5:20
on one country. Ethan Frisch has
5:22
to worry about tariffs on 30
5:24
different countries. We work with the
5:26
producer in Vietnam, in Sri Lanka,
5:29
in Tanzania, in Guatemala, in Afghanistan,
5:31
and Turkey. He's co-founder and co-seo
5:33
of a spice company called Burlap
5:35
and Beryl. They've spent years developing
5:37
relationships with small farmers. Yesterday, Trump
5:40
paused global tariffs at 10% for
5:42
90 days on every country but
5:44
China. But 10% is still a
5:46
price hike, and nobody knows what'll
5:48
happen three months from now. We
5:50
can't just switch our supplier from
5:52
Vietnam to another country or the
5:54
lower tariff rate. because that variety of
5:56
cinnamon simply doesn't grow anywhere else. Burlap and
5:59
Beryl has just... that even with these
6:01
tariffs, they won't charge customers more or
6:03
pay farmers less. We're going to make
6:05
less money ourselves. That's the bottom line
6:08
at the end of the day. We're
6:10
going to have to scale back a
6:12
lot of innovation. We launch about 50
6:14
new products every year. We launch about
6:17
50 new products every year. We had
6:19
an advent calendar slated for production this
6:21
year. That was going to involve custom
6:24
packaging from China and 24 different spices
6:26
from all around the world. We've scrapped
6:28
that project immediately. the farmers that we
6:30
work with everywhere in rural areas in
6:33
Vietnam and Guatemala and Tanzania, they understand
6:35
that the US is a great destination
6:37
for their crops, but also the personal
6:40
pride that that goes into knowing that
6:42
this product is going to American
6:44
consumers will appreciate it. Do you
6:46
think this changes what America represents
6:48
to them now? 100% it has
6:50
already changed what America represents to them.
6:53
I think America was framed as
6:55
a positive trading partner and I
6:57
think the trust that underpins that
6:59
is significantly eroded already. Well growing
7:02
exotic spices in the U.S. might
7:04
be impossible, but shrimp swim in
7:06
American waters. My name is Craig
7:09
Reeves. I'm in Beauford, South Carolina.
7:11
And I'm a lifelong commercial shrimper.
7:13
So is his dad. And the
7:16
trend lines have been clear for
7:18
decades. I'm 54, so for my
7:21
life, it's been a trend down.
7:23
And you know, the last
7:25
20 years has been in
7:27
a steep decline. His wild-caught
7:30
shrimp just can't compete on
7:32
price with the farm-raised shrimp
7:34
from countries like India and
7:36
Vietnam. So last week, when
7:39
Trump first announced tariffs of
7:41
26% on India, 46% on
7:43
Vietnam, and more, Reeves was
7:45
overjoyed. Exotic. You know, overwhelmed
7:48
that... that somebody's finally standing
7:50
up against unfair trade practices.
7:52
And yesterday when he said
7:54
for 90 days tariffs on every
7:57
country but China would be frozen
7:59
at 10%? That's a lot lower
8:01
than what you were expecting
8:03
just last week. So I've
8:05
tried to consistently say since
8:08
the very beginning that tariffs
8:10
is not, it's a short-term
8:12
gain, it's a short-term help,
8:14
you know, my hope is
8:16
not in 50% or 100%
8:18
tariffs or whatever is negotiated
8:20
if it's 10% tariffs. My
8:22
goal is that the consumer
8:25
gets to choose... Whether they
8:27
buy domestic shrimp or imported
8:29
shrimp, instead of being a
8:31
consuming nation, we need to
8:33
be a producing nation. You're 54, so
8:35
it's safe to say, you've got
8:37
more working years behind you than
8:39
you have ahead of you. What
8:41
is your hope for where the
8:44
industry will be by the time you
8:46
retire? Wow. I'm at a stage
8:48
in my life where I really
8:50
want to leave a legacy for
8:52
my children and grandchildren for them
8:55
to have an opportunity to make
8:57
a living from the sea, and
8:59
that's at risk right now. Like
9:01
every American business owner right
9:03
now, in choppy waters, he's
9:05
just trying to figure out
9:07
how to stay afloat. This
9:11
episode was produced by
9:13
Mallory Ewe and Connor
9:15
Donovan. It was edited
9:17
by Courtney Dorning. Our
9:19
executive producer is Sammy
9:22
Yenegan. It's considered this
9:24
from NPR. I'm Ari Shapiro.
9:28
NPR informs and connects communities
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