Drowning in tariffs, American businesses try to stay afloat

Drowning in tariffs, American businesses try to stay afloat

Released Thursday, 10th April 2025
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Drowning in tariffs, American businesses try to stay afloat

Drowning in tariffs, American businesses try to stay afloat

Drowning in tariffs, American businesses try to stay afloat

Drowning in tariffs, American businesses try to stay afloat

Thursday, 10th April 2025
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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

message come from from Betterment, Investing

2:36

and Savings app. CEO app. CEO

2:38

shares how Betterment utilizes tech

2:41

tools powered by human advice.

2:43

by human advice. is here

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to help customers build wealth

2:47

their way. way. And we And we

2:49

provide powerful technology and complete

2:51

human support where technology can

2:53

deliver ease of use and

2:55

affordability and the the people behind

2:58

that technology can provide advice

3:00

and guidance. and guidance. at betterment.com. Investing

3:02

involves risk. Performance not

3:05

guaranteed. 99% of the U.S.

3:07

population lives within listening range

3:09

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3:11

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3:17

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3:19

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3:21

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

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