Assembly Required with Stacey Abrams
Episode: Breaking America's Economy: Unpacking Trump's Tariff War
Release Date: April 17, 2025
Host: Stacey Abrams
Guest: Dean Baker, Co-Founder of the Center for Economic Policy and Research
Guests: Beth Benneke, Founder of Busy Baby; Richard R. Oswald, Vice President of the Missouri Farmers Union

Introduction

In this episode of Assembly Required with Stacey Abrams, Stacey delves into the tumultuous economic landscape shaped by former President Donald Trump's tariff policies. With the global economy in flux, she seeks to understand the real-world implications of these tariffs on American businesses and the broader economic environment. Stacey is joined by Dean Baker, an esteemed economist, along with entrepreneurs Beth Benneke and Richard R. Oswald, who provide firsthand accounts of how these policies are affecting their operations.

Understanding Tariffs and Their Implications

[15:31] Stacey Abrams:
Stacey opens the discussion by emphasizing the importance of discerning who benefits when tariffs are imposed. Drawing from Ryan Holiday's advice, she asks, "Who benefits? What's the cui bono answer?"

[15:34] Dean Baker:
Dean Baker clarifies the fundamental concept of tariffs, explaining, "Tariffs are taxes on imports... it's a tax on our imports from China, it's a tax on our imports from Canada" ([16:10]). He emphasizes that tariffs are inherently regressive, disproportionately affecting working-class Americans who spend a higher percentage of their income on taxed goods.

Notable Quote:
"Tariffs are a very regressive tax... it's a recipe for corruption." – Dean Baker, [17:22]

Economic Impact Analysis with Dean Baker

Tariffs as Regressive Taxes:
Baker elucidates that while tariffs are intended to protect domestic industries, they effectively raise costs for consumers, particularly harming low and middle-income households. He highlights that while tariffs generate revenue, the burden falls heavily on everyday Americans rather than wealthy individuals who may only bear a minimal portion of these taxes.

Trade Deficits and Their Significance:
When Stacey inquires about trade deficits, Baker responds, "What we have a trade deficit... currently it's about 3%" ([21:13]). He suggests that the trade deficit has actually decreased over the past two decades, signifying a nuanced perspective on its severity.

Stock Market and Bond Yields:
Stacey probes into the paradoxical rise in treasury yields amidst a plummeting stock market. Baker explains that typically, a declining stock market would coincide with falling bond yields as investors seek safe-haven assets. Instead, rising yields indicate a lack of confidence in the U.S. economy's stability ([28:40]).

Alternative Trade Strategies:
Baker advocates for a cooperative approach with China, emphasizing the benefits of technological and industrial collaboration over confrontational tariffs. He posits, "I'd rather see us do a cooperative approach. And that's not saying, it's not endorsing China or anything, it's just acknowledging reality." ([33:28])

Notable Quotes:

• "Tariffs are a very regressive tax... it's a recipe for corruption." – Dean Baker, [17:22]
• "I'd rather see us do a cooperative approach... it's just acknowledging reality." – Dean Baker, [33:28]

Personal Stories: Impact on Small Businesses and Farming

Beth Benneke, Founder of Busy Baby

Background:
Beth Benneke shares her journey of identifying a problem faced by new parents—babies constantly dropping toys and items. She invented a placemat that suctions to the table, keeping toys within reach and off the ground, leading to her participation on Shark Tank and distribution in major retailers like Target and Walmart.

Impact of Tariffs:
Beth recounts how recent tariff implementations have jeopardized her business. With products manufactured in China now facing tariffs, she faces a dire situation of depleting inventory and the potential closure of her business due to halted revenue streams ([44:41]).

Notable Quote:
"Politics are very polarized right now... Things get cheap, really cheap... It's frustrating when things have been going fairly well." – Beth Benneke, [54:13]

Richard R. Oswald, Vice President of the Missouri Farmers Union

Background:
Richard Oswald, a lifelong farmer and VP of the Missouri Farmers Union, discusses the modernization of farming and the dependency on international markets, particularly China, for exporting surplus crops like soybeans and corn.

Impact of Tariffs:
He highlights how tariffs and retaliatory policies have disrupted his farming operations, leading to uncertainty in loan repayments and the inability to sustain his farming business ([47:27]). Furthermore, potential bans on rare earth minerals and magnets by China threaten essential farming equipment and infrastructure.

Notable Quote:
"We have to keep moving... but things get better." – Beth Benneke, [54:13]
"I don't feel like America's government cares about America's small businesses right now..." – Richard Oswald, [60:30]

Navigating Uncertainty: Strategies and Coping Mechanisms

Business Adaptation:
Both Beth and Richard emphasize the necessity of adaptability amidst economic turmoil. Beth explores international distribution to mitigate the impact of tariffs, while Richard considers establishing manufacturing within the U.S., despite significant financial and logistical hurdles.

Mental Health and Community Support:
Stacey underscores the mental toll these economic uncertainties impose on small business owners and farmers. Beth advises, "Take care of your mental health. This is going to be a mental health crisis for so many of us" ([65:06]).

Notable Quotes:

• "We need to read books, banned books, questioned books, uncomfortable books. And so we must all insist and make noise right now because this abuse of power is designed to silence us." – Stacey Abrams, [02:55]
• "We have to wait for the storm to pass. The storms always do pass, and things get better." – Beth Benneke, [64:58]

Conclusions and Actionable Steps

Advocacy and Support:
Stacey wraps up the episode by providing listeners with actionable tools to combat the adverse effects of tariffs and authoritarian policies:

1. Fight Book Bans:
   Task: Visit local libraries, check out banned books, and support organizations fighting censorship.

2. Engage with Representatives:
   Task: Contact local and national representatives to express concerns about tariffs and their impact.

3. Support Local Businesses:
   Task: Patronize small businesses in your community to help sustain them through economic hardships.

Final Thoughts:
Stacey reinforces the resilience of American entrepreneurs and farmers, urging them to remain steadfast and support one another during these challenging times.

Notable Quote:
"We need you to use your voice to speak up and fight back." – Stacey Abrams, [65:06]

Key Takeaways

• Tariffs Function as Regressive Taxes: Primarily burden working-class Americans rather than the wealthy.
• Economic Uncertainty: Tariff policies have destabilized both small businesses and large-scale farming operations.
• Strategic Responses Needed: Businesses must adapt through diversification, international distribution, and seeking local manufacturing options despite challenges.
• Mental Health Importance: The stress from economic instability can lead to a mental health crisis among affected individuals.
• Advocacy is Crucial: Active participation in political processes and community support are essential to mitigate the negative impacts of current policies.

Notable Quotes Summary

• "Tariffs are a very regressive tax... it's a recipe for corruption."
  – Dean Baker, [17:22]

• "I'd rather see us do a cooperative approach... it's just acknowledging reality."
  – Dean Baker, [33:28]

• "Take care of your mental health. This is going to be a mental health crisis for so many of us."
  – Beth Benneke, [65:06]

• "We need you to use your voice to speak up and fight back."
  – Stacey Abrams, [65:06]

This episode of Assembly Required provides a comprehensive examination of the real-world effects of Trump's tariff policies on the American economy, highlighting personal struggles and strategic responses from those directly affected. Stacey Abrams effectively bridges macroeconomic analysis with personal narratives, offering listeners both an understanding of the broader economic landscape and intimate stories of resilience and adaptation.