Drowning in tariffs, American businesses try to stay afloat

Summary

Summary of NPR’s "Consider This" Episode: "Drowning in Tariffs, American Businesses Try to Stay Afloat"

In the April 10, 2025 episode of NPR’s "Consider This," titled "Drowning in Tariffs, American Businesses Try to Stay Afloat," hosts delve into the pervasive impact of President Trump’s tariffs on American businesses. The episode unpacks how these tariffs are reshaping supply chains, pricing strategies, and the very survival of various enterprises across the United States. Through in-depth interviews with business owners like Yair Reiner, Lisa Winton, Ethan Frisch, and Craig Reeves, the episode illustrates the real-world challenges and adaptive strategies employed in the face of escalating trade tensions.

1. Introduction to the Trade War and Its Implications

The episode opens by framing the complexities of the ongoing trade war through the story of Yair Reiner, the inventor of the Frywall—a silicone kitchen accessory designed to minimize splatter. Reiner’s initial strategy involved producing the Frywall in the U.S., aiming to leverage the "Made in the USA" label. However, he quickly discovered that manufacturing domestically would require selling the product at an uncompetitive price of around $80, as he explains at [00:23] (Yair Reiner): “It is the best splatter guard in the world. But, you know, splatter just is not as important as other things.”

To maintain market viability, Reiner shifted production to China, reducing the selling price to approximately $25. This decision allowed him to sustain his business by distributing profits across various sectors of the U.S. economy. However, the introduction of a 145% tariff on Chinese goods by President Trump poses a significant threat to his business model, forcing him to contemplate a price increase of 20-25%, potentially jeopardizing his market position and the future of his company ([01:21] Yair Reiner).

2. Domestic Manufacturers Under Pressure: Lisa Winton’s Experience

Lisa Winton, the owner of Wynton Machine Co., represents small domestic manufacturers who were initially expected to benefit from the tariffs. Located in Georgia, her company produces machinery with most of its supply chain based in the U.S. Nonetheless, distributors sourcing parts from China have started passing the cost of tariffs onto her ([04:04] Lisa Winton). The unpredictability of tariff fees introduces significant financial uncertainty, complicating budgeting and operational planning.

Winton expresses cautious optimism, acknowledging some benefits from manufacturers preferring American-made machinery. However, she underscores the widespread uncertainty that makes strategic financial decisions challenging ([05:12] Lisa Winton): “I think the glass is half full and I've taken a few sips.” Her experience highlights the nuanced reality that while some sectors might gain from tariffs, the overarching instability can hinder business growth and sustainability.

3. The Ripple Effect on Diverse Supply Chains: Ethan Frisch’s Spice Enterprise

Ethan Frisch, co-founder and co-CEO of Burlap and Barrel, a specialty spice company, illustrates the broader impact of tariffs on businesses with global supply chains. Operating with producers from Vietnam, Sri Lanka, Tanzania, Guatemala, Afghanistan, and Turkey, Frisch faces the challenge of navigating tariffs imposed on 30 different countries ([05:17] Ethan Frisch). The temporary reduction of tariffs to 10% for 90 days, excluding China, adds another layer of uncertainty.

Frisch reveals that Burlap and Barrel has chosen not to pass the increased costs onto consumers. Instead, the company absorbs the financial strain by reducing profits and scaling back on innovation, including scrapping projects like a custom-packaged advent calendar ([06:05] Ethan Frisch). This decision reflects the difficult trade-offs businesses must make to maintain customer loyalty while coping with external economic pressures. Frisch also touches on the erosion of trust with international partners, as the perception of America as a reliable trading partner diminishes ([06:44] Ethan Frisch): “I think America was framed as a positive trading partner, and I think the trust that underpinned that is significantly eroded already.”

4. Traditional Industries Facing Existential Threats: Craig Reeves and the Shrimp Industry

Craig Reeves, a lifelong commercial shrimper from Buford, South Carolina, provides a perspective from traditional industries grappling with globalization and tariff policies. His wild-caught shrimp business has been in decline for decades, struggling to compete with cheaper, farm-raised shrimp from countries like India and Vietnam ([07:15] Craig Reeves). While initial tariffs on these countries in previous weeks offered temporary relief, the recent decision to freeze tariffs at 10% falls short of providing the much-needed competitive edge.

Reeves emphasizes that tariffs alone cannot resolve the long-term challenges his industry faces. His aim is to shift consumer behavior towards preferring domestic shrimp, advocating for America to become a producing rather than a consuming nation ([08:04] Craig Reeves). As he contemplates his legacy, Reeves underscores the urgency of preserving traditional livelihoods for future generations ([08:45] Craig Reeves): “I'm at a stage in my life where I really want to leave a legacy for my children and grandchildren, for them to have an opportunity to make a living from the sea.”

5. Collective Struggles and Adaptive Strategies

Throughout the episode, the collective narrative among the interviewed business owners conveys a sense of navigating through tumultuous economic waters. Yair Reiner’s need to consider raising prices, Lisa Winton’s balancing act between domestic benefits and international uncertainties, Ethan Frisch’s compromises on innovation, and Craig Reeves’ fight to sustain a legacy all paint a comprehensive picture of American businesses striving to stay afloat amid high tariffs.

The episode highlights that while tariffs may offer temporary advantages to certain sectors, the overarching instability and unpredictability can impose severe constraints on business operations, innovation, and long-term sustainability. The owners’ stories underscore the intricate interdependencies within the economy and the broader implications of trade policies on everyday commerce.

6. Conclusion: The Ongoing Battle for Stability

As the episode concludes, the hosts reflect on the pervasive challenges posed by the fluctuating tariff landscape. The stories of Reiner, Winton, Frisch, and Reeves illustrate that the battle against tariffs is not just a matter of economics but also one of survival, legacy, and adaptability. The uncertainty surrounding future trade policies leaves American businesses in a precarious position, constantly reassessing strategies to mitigate risks and sustain growth.

NPR’s "Consider This" effectively encapsulates the multifaceted impact of tariffs on American businesses, providing listeners with a nuanced understanding of the economic and human dimensions of trade wars. Through personal narratives and expert insights, the episode underscores the resilience and resourcefulness required to navigate an ever-evolving global trade environment.

Notable Quotes:

• Yair Reiner [00:23]: “It is the best splatter guard in the world. But, you know, splatter just is not as important as other things.”

• Yair Reiner [01:21]: “I've worked hard to have a stable price on my product for almost 10 years, and now I'm looking at, at a situation where I'm going to have to raise it by 20, maybe 25%, maybe more. I'm not sure if I still have a market at that point, and I don't know if I still have a business.”

• Lisa Winton [05:12]: “Right now, I think the glass is half full and I've taken a few sips.”

• Ethan Frisch [06:05]: “We're going to have to scale back a lot of innovation.”

• Ethan Frisch [06:44]: “I think America was framed as a positive trading partner, and I think the trust that underpinned that is significantly eroded already.”

• Craig Reeves [08:45]: “I'm at a stage in my life where I really want to leave a legacy for my children and grandchildren, for them to have an opportunity to make a living from the sea.”

This comprehensive summary captures the essence of the episode, highlighting the personal and economic struggles faced by American businesses amidst high tariffs and trade uncertainties.

Transcript

[Host]

One way to tell the story of a trade war is through a curved piece of silicone called the Frywall.

[Yair Reiner]

Frywall keeps the sizzle in the pan and the splatter off of you and your stovetop.

[Host]

That is the inventor of the Frywall.

[Ari Shapiro]

Yair Reiner on Shark tank. Back in 2018, Reiner priced out what it would cost for him to produce.

[Host]

His invention in the US and figured.

[Ari Shapiro]

To turn a profit, he'd have to.

[Host]

Sell a Made in the USA Frywall for about eight.

[Yair Reiner]

You know, it's really hard to sell a splatter guard for that much money.

[Ari Shapiro]

Even the best splatter guard in the world is not going to sell for $80.

[Yair Reiner]

Precisely. It is the best splatter guard in the world. But, you know, splatter just is not as important as other things.

[Host]

So he makes it in China, which allows him to sell it for about $25. And he says that money gets spread around to many parts of the US Economy.

[Yair Reiner]

It goes to the US Postal Service, which provides my, quote, unquote, free shipping. If I sell on Amazon, it goes to Amazon, who has to pay its warehouse workers. I also have to pay my patent ATT so that my patent is protected and I can't get ripped off. It has to go to pr, it has to go to marketing. It has to go to the software firms that I use to operate and run my business.

[Host]

But now President Trump has put a 145% tariff on goods from China.

[Ari Shapiro]

At least that's the number as we.

[Host]

Record this Thursday afternoon. It's been a moving target.

[Yair Reiner]

I've worked hard to have a stable price on my product for almost 10 years, and now I'm looking at, at a situation where I'm going to have to raise it by 20, maybe 25%, maybe more. I'm not sure if I still have a market at that point, and I don't know if I still have a business.

[Ari Shapiro]

And so if that's going to be the case for the foreseeable future, for the next four years, where does that leave you?

[Yair Reiner]

It leaves me making plans from week to week, which is not the way that they teach you to run a business, either at your parents table or in business school.

[Host]

And there are a lot of, yeah, Reiners out there, business owners riding the rollercoaster as Trump's tariffs have been rolled out, ratcheted up, and partially walked back.

[Ethan Frisch]

We're gonna have to scale back a lot of innovation.

[Lisa Winton]

We just noticed our first invoice that had a tariff line on it.

[Craig Reeves]

I have hopes that tariffs will help us, but that can't be the end game.

[Host]

Consider this Trump's tariff plans affect nearly every company in America. We'll hear from a few business owners about what it means for them from npr.

[Ari Shapiro]

Hi, I'm Ari Shapiro.

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[Ari Shapiro]

It's consider this from npr.

[Host]

Lisa Winton runs exactly the type of business that the Trump administration says its tariffs are supposed to help.

[Lisa Winton]

I'm a small manufacturer in Georgia and I produce machinery.

[Host]

Winton Machine Co. Makes metal parts that.

[Ari Shapiro]

Go into everything from refrigerators to lawn chairs.

[Host]

And most of the company's supply chain.

[Ari Shapiro]

Is in the US but some of.

[Host]

Lisa Winton's distributors get their parts from China and they've started passing along the.

[Ari Shapiro]

Cost of tariffs to her.

[Lisa Winton]

So I have to purchase, I have to place my order and then when I place my order, they'll let me know what my tariff fee is.

[Ari Shapiro]

Oh, so you might say I've got $500 to spend on this or 5,000 or whatever.

[Host]

And then when the bill comes in, you see tacked onto it is a tariff fee that could put this way.

[Ari Shapiro]

Outside of your budget. You just don't know.

[Lisa Winton]

I don't know. It's uncertainty. And you know, with uncertainty also goes we ship all over the world. So if there's additional tariffs put on my machinery to export, that's going to be very painful.

[Host]

Have you heard from anyone who has said, you know what I was going to buy from China, but given the situation with the tariffs, I think I would rather buy from Wynton Machine instead.

[Ari Shapiro]

Like, is this going to help you in that respect?

[Lisa Winton]

We do benefit from manufacturers that say I want to buy American made machinery. There's just so much unknown right now and I think that's the most difficult thing to make decisions for your company financially when you just don't know all the pieces of the puzzle.

[Ari Shapiro]

I hear a lot of caution in your voice, but I can't quite tell whether you're cautiously optimistic or cautiously pessimistic.

[Lisa Winton]

Right now, I think the glass is half full and I've taken a few sips.

[Ari Shapiro]

Some businesses have to worry about tariffs on one country. Ethan Frisch has to worry about tariffs on 30 different countries.

[Ethan Frisch]

We work with producers in Vietnam, in Sri Lanka, in Tanzania, in Guatemala, in Afghanistan and Turkey.

[Host]

He's co founder and co CEO of.

[Ari Shapiro]

A spice company called Burlap and Barrel. They've spent years developing relationships with small farmers.

[Host]

Yesterday, Trump paused global tariffs at 10%.

[Ari Shapiro]

For 90 days on every country but China. But 10% is still a price hike, and nobody knows what will happen three months from now.

[Ethan Frisch]

We can't just switch our supplier from Vietnam to another country with a lower tariff rate because that variety of cinnamon simply doesn't grow anywhere else.

[Ari Shapiro]

Burlap and Barrel has decided that even with these tariffs, they won't charge customers.

[Host]

More or pay farmers less.

[Ethan Frisch]

We're going to make less money ourselves. That's the bottom line. At the end of the day, we're going to have to scale back a lot of innovation. We launch about 50 new products every year. We had an advent calendar slated for production this year that was going to involve custom packaging from China and 24 different spices from all around the world. We scrapped that project immediately, just as an example.

[Host]

And these tariffs have made Ethan Frisch.

[Ari Shapiro]

Face another big change that's hard to.

[Host]

Put a number on.

[Ethan Frisch]

The farmers that we work with everywhere in rural areas, in Vietnam and Guatemala and Tanzania. They understand that the US Is a great destination for their crops, but also the personal pride that goes into knowing that this product is going to American consumers who will appreciate it.

[Ari Shapiro]

Do you think this changes what America represents to them now?

[Ethan Frisch]

100%. It has already changed what America represents to them. I think America was framed as a positive trading partner, and I think the trust that underpinned that is significantly eroded already.

[Host]

While growing exotic spices in the US.

[Ari Shapiro]

Might be impossible, but shrimp swim in American waters.

[Craig Reeves]

My name is Craig Reeves. I'm in Buford, South Carolina, and I'm a lifelong commercial shrimper.

[Host]

So is his dad. And the trend lines have been clear for decades.

[Craig Reeves]

I'm 54, so for my life it's been a trend down and, you know, the last 20 years has been in a steep decline.

[Ari Shapiro]

His wild caught shrimp just can't compete on price with the farm. Raised shrimp from countries like India and Vietnam.

[Host]

So last week, when Trump first announced tariffs of 26% on India, 46% on.

[Ari Shapiro]

Vietnam and more, Reeves was overjoyed, ecstatic.

[Craig Reeves]

You know, overwhelmed that that somebody's finally standing up against unfair trade practices.

[Ari Shapiro]

And yesterday when he said for 90 days tariffs on every country but China would be frozen at 10%, that's a lot lower than what you were expecting just last week.

[Craig Reeves]

So I've tried to consistently say since the very beginning that tariffs is not it's a short term gain, it's a short term help. You know, my hope is not in 50% or 100% tariffs or whatever's negotiated. If it's 10% tariffs, my goal is that the consumer gets to choose whether they buy domestic shrimp or imported shrimp. Instead of being a consuming nation, we need to be a producing nation.

[Ari Shapiro]

You're 54, so it's safe to say you've got more working years behind you than you have ahead of you. What is your hope for where the industry will be by the time you retire?

[Craig Reeves]

Wow. I'm at a stage in my life where I really want to leave a legacy for my children and grandchildren, for them to have an opportunity to make a living from the sea. And that's at risk right now.

[Ari Shapiro]

Like every American business owner right now in choppy waters, he's just trying to.

[Host]

Figure out how to stay afloat.

[Ari Shapiro]

This episode was produced by Mallory Yu and Connor Donovan.

[Host]

It was edited by Courtney Dorning. Our executive producer is Sammy Yenigun.

[Ari Shapiro]

It's Consider this from npr. I'm Ari Shapiro.

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