President Trump doubles down on tariffs

Summary

Consider This from NPR

Episode: President Trump Doubles Down on Tariffs

Date: July 24, 2026
Host: Ailsa Chang
Guests: Danielle Kurtzleben (NPR White House Correspondent), Rafael Nam (NPR Senior Business Editor), Natasha Sarin (President, Budget Lab at Yale University)

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Overview of the Episode

This episode examines President Trump's decision to impose a new wave of tariffs on more than 80 countries after the Supreme Court struck down his initial attempt to levy sweeping tariffs under the International Emergency Economic Powers Act. The discussion explores what’s changed in this new round of tariffs, the legal justifications being used, and the consequences for American consumers, businesses, and the upcoming political landscape.

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Key Discussion Points

1. Background: Supreme Court Ruling and Trump’s Response

• In February, the Supreme Court ruled President Trump could not impose tariffs under the International Emergency Economic Powers Act, sparking a strong reaction from him.
• Trump, following the ruling, promised to pursue alternative legal avenues:

  "Alternatives will now be used to replace the ones that the court incorrectly rejected. We have alternatives, great alternatives."
  — President Trump (quoted at 00:25)

2. Details of the New Tariffs

• Tariff Structure: Two tiers—10% and 12.5%—on nearly all of America’s top trading partners; major exemptions include energy and certain foods.
  (Danielle Kurtzleben, 03:07)

• Replacement of Previous Measures: The new tariffs replace a temporary 10% blanket tariff that expired this week.

• Legal Rationale: This time, the administration cites the need to combat “unfair trade practices,” specifically alleging other nations aren’t doing enough to fight forced labor.

• Skepticism Over Justifications:

  "Trump is just hunting for legal justifications and the new tariffs are, quote, too convenient to be taken seriously."
  — Rep. Richard Neal (paraphrased by Danielle Kurtzleben, 03:25)

• Additional Tariffs on Canada:

  • New tariffs targeting certain Canadian goods at a steep 50% rate.
  • Intended as retaliation for Canada’s prior counter-tariffs; to take effect in under a month (Danielle Kurtzleben, 04:10).

3. Economic Impact on U.S. Households

• While not much higher than their predecessors, the new tariffs are still significantly above levels at the start of Trump’s second term.
  • This translates into “a real impact on American families,” exacerbated by already high cost-of-living concerns and elevated gas prices due to the ongoing war with Iran.
• Quantified Effects:
  • The Budget Lab at Yale University estimates the tariffs will add “a little under a percentage point” to inflation, costing households approximately $1,100 per year (Rafael Nam, 04:36).

    “You never make up that—it’s sort of a permanent decline in the economy’s strength as a result of this type of policy.”
    — Natasha Sarin, President, Budget Lab at Yale University (05:32)

• Broader Economic Assessment: Economists overwhelmingly consider tariffs a “really bad idea” (Rafael Nam, 05:41).

4. White House Rationales for Tariffs

• Policy Motivations:
  • Tariffs are used “as leverage” in trade negotiations, specifically as a tool to prompt concessions.
    • For instance, there’s time for US-Canada negotiations on the USMCA before the newest Canada tariffs take effect (Danielle Kurtzleben, 05:51).
  • The administration also claims tariffs are designed to “revitalize manufacturing.”
    • However, job growth in manufacturing remains negative since Trump took office.
    • Assertions of “trillions” in new investment lack clarity and have not materialized in job creation (Danielle Kurtzleben, 06:45).

5. Immediate & Ongoing Effects on the Economy and Policy

• Short-Term Outcomes:

  • Rising living costs and greater unpredictability (“uncertainty”) for American businesses.
    • The Federal Reserve faces greater complexity due to tariffs, with knock-on effects like higher mortgage rates and pressure to raise interest rates.

• Business Concerns:

  “…really challenging from the perspective of businesses who are trying to plan to understand, like, what their costs are going to be and also then what prices they’re going to have to charge consumers for these goods if you don’t have any real sense of the ways in which the policy is evolving.”
  — Natasha Sarin (07:53)

• Political Risks of Tariffs:

  • The unpredictability generated by Trump’s frequent tariff moves adds to business frustration (Rafael Nam, 06:55).

6. Political Calculus: Tariffs and the Midterms

• Trump’s case for tariffs in the campaign is that they’re an investment for “great deals” and future economic gains.
• Voter skepticism is growing:
  • Tariffs are increasingly unpopular, contributing to Trump’s declining approval, especially when coupled with high gas prices from the Iran war.
  • The issue places Republican candidates in a bind—whether to align with or distance themselves from Trump’s tariff strategy (Danielle Kurtzleben, 08:28):

    “If you’re a Republican running this November, you have a tough question. Do you try to create daylight between yourself and Trump on tariffs, and if you do, how do voters react and how does the president react?”

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Notable Quotes & Highlights

• President Trump on Supreme Court setback:

  "We have alternatives, great alternatives." (00:25)

• Natasha Sarin, Budget Lab:

  "You never make up that it’s sort of a permanent decline in the economy’s strength as a result of this type of policy." (05:32)
  "…really challenging from the perspective of businesses who are trying to plan…if you don’t have any real sense of the ways in which the policy is evolving." (07:53)

• Danielle Kurtzleben on Republican dilemma:

  "If you’re a Republican running this November, you have a tough question. Do you try to create daylight between yourself and Trump on tariffs…" (08:28)

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Timestamps for Key Segments

• Supreme Court’s Tariff Ruling & Trump’s Response: 00:00–00:34
• New Tariff Details & Rationale: 03:07–04:10
• Impact on Households & Economic Analysis: 04:36–05:45
• White House Policy Reasons: 05:51–06:45
• Business & Policy Effects: 06:55–08:14
• Political Context for Midterms: 08:20–09:02

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Episode Tone and Style

The discussion is straightforward, analytical, and fact-focused, with a balanced look at the administration’s public reasoning, the skepticism from economists and politicians, and the practical ramifications on Americans’ wallets and political calculations.

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This summary captures all critical analysis and context around the new tariffs, including their development, economic and political effects, and the ongoing debate they provoke as the U.S. approaches midterm elections.

Transcript

[Ailsa Chang]

It's consider this, where every day we go deep on one big news story. Today, President Trump is doubling down on tariffs. In February, the Supreme Court struck down his sweeping tariffs. President Trump was visibly angry. The court ruled that he couldn't impose tariffs under a law called the International Emergency Economic Powers Act. During a press conference shortly after that ruling, Trump responded with this but other

[Rafael Nam]

alternatives will now be used to replace the ones that the court incorrectly rejected. We have alternatives, great alternatives.

[Ailsa Chang]

Alternatives as in alternative laws that the administration might use to authorize tariffs. Today, the Trump administration brought that plan to fruition by imposing a new set of tariffs on more than 80 countries. Consider this. After the Supreme Court struck down Trump's previous tariffs, he is doubling down with new ones. What's different this time, and how could it affect the average consumer? From npr, I'm Ailsa Chang.

[NPR Politics Host]

This week on the NPR Politics podcast, we uncover a pattern in political ad spending. As the midterms get closer, Republicans are leaning into an issue they've won on before, immigration. We look at their message and also what Democrats are saying on the issue in a very different way. Listen now on the NPR Politics podcast.

[Planet Money Host]

This season on Planet Money Summer School, we go to China, one of the world's biggest economy, and what we learned

[Here and Now Host]

is Americans are crazy, Chinese are crazy.

[Danielle Kurtzleben]

These are two countries full of these crazy hustlers.

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The US And China are more alike than you might think. On Planet Money Summer School, a strange lesson about success, how to handle the downsides of progress. Listen on the NPR app or wherever you get your podcasts. Maybe you read the Odyssey in school and found that a pretty dry, dusty academic exercise. But the new movie adaptation is pure Hollywood. It's a gorgeous, spectacular take on the material that's bursting with big names like Matt Damon, Tom Holland, Anne Hathaway and Zendaya. We'll tell you why. You should check it out on NPR's Pop Culture Happy Hour. Listen via the NPR app or wherever you get your podcasts.

[Ailsa Chang]

It's consider this from npr. President Trump's tariffs have caused an array of problems for him. They have raised prices. They've caused other countries to retaliate. And polls show that voters don't like these tariffs. Nevertheless, he has remained remarkably firm in keeping tariffs as a cornerstone of his economic agenda, imposing a new wave of tariffs on Friday. Here to tell us more are NPR White House correspondent Danielle Kurtzleben and NPR senior business editor Rafael Nam. Hello to both of you.

[Danielle Kurtzleben]

Hey there.

[Here and Now Host]

Hey.

[Ailsa Chang]

Hey. Okay, Daniel, I want to start with you. Can you just tell US more about these newest tariffs. Like, what are they replacing? Exactly.

[Danielle Kurtzleben]

Right. So these new tariffs have two tiers, 10% and 12.5%. And they cover all of the biggest U.S. trading partners, which are responsible for almost all of the imports to the U.S. now, that said, some major categories of goods are exempted here, like energy and some types of foods.

[Ailsa Chang]

Okay.

[Danielle Kurtzleben]

Now, these new tariffs will replace a temporary global 10% blanket tariff that Trump put into place right after that Supreme Court decision you mentioned. That tariff expired this week. These new tariffs took their place. Now, to impose these new tariffs, the administration is using a law intended to counter other countries, quote, unfair trade practices. In this case, the US Is accusing all of its major trading partners of not doing enough to fight the use of forced labor. Now, not everyone buys that rationale. Democratic Representative Richard Neal from Massachusetts said in a statement that Trump is just hunting for legal justifications and the new tariffs are, quote, too convenient to be taken seriously.

[Ailsa Chang]

And wait, these weren't even the only tariffs that Trump imposed this week.

[Danielle Kurtzleben]

Right, Right. He also announced new tariffs on some specific categories of Canadian goods. Those are 50% tariffs. So they're pretty high. And they're set to take effect in just under a month. The administration said those are to retaliate against Canada's own retaliation against U.S. tariffs last year.

[Ailsa Chang]

We're in this time when the cost of living, it's such a top concern for so many households. How do you think these tariffs will affect those households?

[Rafael Nam]

The good news is that, if you can call it that, is that it may not. They're not significantly higher than the tariffs they are replacing, but they are still a lot higher than they were at the start of the second Trump administration. And this has a real impact on American families, especially at a time, like you said, Elsa, when the cost of living is a real concern. It's also that the war with Iran has led to a big increase in gas prices. The Budget Lab at Yale University says the latest tariffs will add a little under a percentage point to consumer inflation. And in dollar terms, that means an additional tax of $1,100 to households per year. Essentially, all of this clearly has a knock on effect. According to Natasha Sarin, the president of the Budget Lab, inflation rises because of tariffs. People therefore spend less and the end result is a hit to the economy. This is how she put it.

[Natasha Sarin]

You never make up that it's sort of a permanent decline in the economy's strength as a result of this type of policy.

[Rafael Nam]

And that's why many economists think tariffs are a really Bad idea.

[Ailsa Chang]

Well, given that tariffs are adding to people's financial problems, why go through with them?

[Danielle Kurtzleben]

Well, this White House has a couple of policy reasons. First, they often use tariffs as leverage to get concessions from other countries on trade agreements. And it's possible, by the way, that that could happen with these new Canada tariffs I mentioned. Like I said, there's almost a month until they go into effect, and the US And Canada still need to sit down and renegotiate the USMCA trade pact. So these tariffs could change or disappear during those negotiations. Now, the White House's main rationale for tariffs is that they will revitalize manufacturing. That boom has not materialized yet in jobs. In fact, there are fewer manufacturing jobs now than when Trump took office. Now, the White House has also claimed trillions of dollars in new investment as a result of trade deals stemming from his tariffs. New investment could result in more jobs, but also, the numbers have been unclear, and we still have to see when or if all of that money materializes.

[Ailsa Chang]

Exactly. Okay, so, Rafael, the administration is saying tariffs will pay off, but we're obviously living in the present moment. What kind of effects are these tariffs having right now?

[Rafael Nam]

So, besides the higher cost of living, the main thing is that it does make things unpredictable. Take the Federal Reserve. Tariffs are just another complication at a time when policymakers are grappling with higher energy costs and high borrowing costs. For example, the average 30 year mortgage just hit its highest in nearly a year. All of this could make it more likely the Fed will have to raise interest rates this year, which goes against a president who has been arguing that the Fed should be lowering rates. But for businesses today, the effects of these tariffs are real. You've heard us say this time and time again, businesses hate uncertainty. And right now, that's what they're getting. Not only that, the president has a habit of threatening to impose additional tariffs all of a sudden. He did that with Canada earlier this week, for example. And Sarin at the Budget Lab says those kinds of sudden actions make life extremely tough for businesses.

[Natasha Sarin]

And so I think that makes it, like, really challenging from the perspective of businesses who are trying to plan to understand, like, what their costs are going to be and also then what prices they're going to have to charge consumers for these goods if you don't have any real sense of the ways in which the policy is evolving.

[Rafael Nam]

So Trump may be arguing tariffs will pay off, but businesses, though, are not feeling it right now.

[Ailsa Chang]

But okay, Danielle, just make this make sense. Like, how do these tariffs make sense politically? With midterm elections approaching, well, that's really a gamble.

[Danielle Kurtzleben]

I think Trump's pro tariff argument is essentially, I'm using these now to make great deals. They can bring in some revenue, but the biggest economic effects will show up eventually. Now, some voters may buy into that long term narrative, but polls have shown that tariffs have grown less and less popular, and that along with higher gas prices from the Iran war, has dragged the president's approval down. Now, if you're a Republican running this November, you have a tough question. You do you try to create daylight between yourself and Trump on tariffs. And if you do, how do voters react and how does the president react? Both of those things are very unpredictable.

[Ailsa Chang]

That is NPR's Danielle Kurtzleben and Rafael Nam. Thank you to both of you.

[Danielle Kurtzleben]

Yeah, thank you.

[Ailsa Chang]

This episode was produced by Michelle Aslam and Karen Zamora with audio engineering by Ted Mebane. Our director is Jonas Adams. This was edited by Rebecca Metzler, Mallory Yu and Timby Ermias. Our interim executive producer is Courtney Dorning. And thanks to our Consider THIS plus listeners who support the work of NPR journalists and help keep public radio strong. Supporters also hear every episode without messages from sponsors, and they get to unlock bonus episodes of Consider this. Learn more at plus.NPR.org. It's Consider this from npr. I'm Ailsa Changing.

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