One wild year of Trump's tariffs

This episode of Marketplace All-in-One examines the real-world impact of President Trump's 2025 'Liberation Day' tariffs, which dramatically reshaped U.S. trade policy. Despite the Supreme Court striking down some of the tariffs under the International Emergency Economic Powers Act, many remain in effect, with the overall tariff rate still at 11%—significantly higher than pre-2025 levels. The episode centers on two small business owners: Justine Kahn of Botnia Skincare in California and Will Sissel of Sissel & Daughter's Cheesemongers in Maine. Both describe how tariffs on imported materials—like aluminum packaging and European essential oils—have driven up costs by tens of thousands of dollars, forcing them to absorb expenses rather than pass them on to consumers. They’ve responded with creative strategies: reevaluating packaging, offering loyalty incentives, and doubling down on community trust through transparent communication. Despite the financial strain, both businesses report strong customer loyalty, though sales volume has increased while average basket size has decreased. Economic experts like Scott Lincecum from the Cato Institute note that promised benefits—like a reduced trade deficit and manufacturing boom—have not materialized, with trade balances and manufacturing output largely unchanged. The episode concludes with uncertainty about future tariffs and the lack of refunds, leaving small businesses in limbo as the broader economic impact remains unclear.