Podcast Summary: "Is Business Broken?" Episode: "The Economic Anxiety of a Global Trade Shift"
Released June 26, 2025 by Questrom School of Business
Introduction
In this special student-led episode of "Is Business Broken?", hosted by Grant Corbett, a sophomore at Boston University and a member of the undergraduate team at the Merotra Institute, the conversation delves into the complex world of tariffs and their implications for Boston-based businesses. Grant introduces JD Chesloff, the President and CEO of the Massachusetts Business Roundtable, an influential organization that collaborates with CEOs and business leaders statewide to shape public policy and foster long-term economic growth.
Impact of Tariffs on Businesses
The episode kicks off with Grant posing a critical question about the divergent perspectives on tariffs: opponents argue that tariffs lead to price hikes and inflation, potentially stifling economic growth, while proponents believe tariffs can reshore American industries and strengthen the U.S. economy in the long term. JD Chesloff provides a nuanced response:
“The top piece of feedback we get from employers right now is that tariffs are causing uncertainty and disruption.” [02:09]
Chesloff emphasizes that the primary concern among businesses is the uncertainty created by the frequent policy changes, which hampers decision-making in areas like hiring, investment, and mergers. This uncertainty leads many companies to adopt a "wait and see" approach, delaying crucial business activities.
Specific Challenges in Massachusetts
Focusing on Massachusetts, Chesloff outlines how specific industries are uniquely affected by current federal policies:
“Higher education, health care, life science, clean energy... a lot of those industries are vulnerable based on the policies coming out of DC.” [03:14]
He highlights that Massachusetts’ economy, heavily reliant on innovation, knowledge, and talent, faces additional threats from policies related to workforce and immigration. For instance, increased tariffs on lumber from Canada not only raise construction costs but also indirectly impact housing affordability, a significant economic challenge in the state.
Effects on Different Types and Sizes of Businesses
Grant probes deeper into how various businesses within the Massachusetts Business Roundtable are affected, distinguishing between manufacturers and service-oriented companies. Chesloff explains:
“Service industries and manufacturers... are experiencing this very differently.” [05:08]
Manufacturers like New Balance and Schneider are directly impacted by rising supply chain costs due to tariffs. In contrast, large employers have more resilience, often able to stockpile materials to mitigate tariff impacts. Smaller businesses, however, lack this luxury and are more vulnerable, potentially leading to reduced operations or even closures.
Additionally, Chesloff notes the disruption of global relationships, which have been meticulously built over years, poses a long-term threat:
“What tariffs are doing are disrupting global relationships... that’s another impact that has been coming to my attention.” [06:55]
Historical Context: Comparing to the Smoot-Hawley Tariff
Grant brings up the Smoot-Hawley Tariff Act of 1930, drawing parallels to current tariff policies. Chesloff acknowledges the importance of historical lessons:
“You can absolutely learn from the past.” [07:24]
He distinguishes the motivations behind the two periods, noting that today's tariff policies stem from a desire to reverse globalization and address supply chain dependencies. This is a philosophical shift from the post-World War II era's push for interconnectedness. Chesloff suggests that while the scale of current tariffs is significant, the underlying intent is to strengthen economic stability by reducing reliance on foreign supply chains.
Potential Future Strategies and Opportunities
Transitioning to solutions, Grant inquires about potential positive developments amidst the uncertainty. Chesloff shares insights from interactions with business members:
“Collaboration and partnerships with unlikely allies” are emerging as key strategies. [11:06]
He cites the example of Jim Rooney from the Greater Boston Chamber of Commerce, who is uniting chambers from both red and blue states to advocate for sustained research funding. Such alliances demonstrate that even amidst political differences, businesses can find common ground to influence public policy effectively.
Talent Loss and Startup Implications
The discussion shifts to the startup ecosystem, a vital component of Massachusetts' economy. Grant raises concerns about whether startups are declining due to the current economic climate. Chesloff responds:
“There are still innovators... The question is from the idea stage and moving up, what does that look like.” [12:48]
While the innovation spirit remains strong, the pathway from concept to execution is fraught with uncertainty, potentially slowing the startup momentum. Chesloff expresses apprehension about the talent challenge, highlighting risks like the outmigration of skilled workers and researchers to lower-cost states or even overseas:
“If we lose that talent advantage, that's what keeps me up at night.” [15:33]
Closing Advice and Optimism
As the episode winds down, Grant seeks a message of encouragement for students and hiring managers navigating these turbulent times. Chesloff offers pragmatic advice:
“Be patient, be nimble... constantly learning.” [19:28]
He underscores the importance of adaptability and continuous education, acknowledging that the job landscape is evolving rapidly due to economic shifts and policy changes. Chesloff remains cautiously optimistic, believing that with greater policy certainty, the Massachusetts economy can regain its innovative edge.
Conclusion
This episode of "Is Business Broken?" provides an insightful exploration of how current tariff policies are reshaping the economic landscape for Boston-based businesses. Through an engaging dialogue between a passionate student host and an experienced business leader, listeners gain a comprehensive understanding of the multifaceted challenges and potential opportunities arising from global trade shifts. Key takeaways include the pervasive uncertainty affecting business decisions, the specific vulnerabilities of Massachusetts' innovation-driven economy, and the critical importance of collaborative strategies and talent retention in navigating this new economic era.
Thank you for listening to this episode of "Is Business Broken?" brought to you by the Ravi K. Mehrotra Institute for Business, Markets & Society at BU Questrom School of Business.