Make Me Smart: Your Hot Takes on This Week's Tariff Insanity

Podcast: Make Me Smart
Hosts: Kai Ryssdal and Kimberly Adams
Episode Release Date: April 10, 2025
Episode Title: Your Hot Takes on This Week's Tariff Insanity

Introduction

In this episode of Make Me Smart, hosts Kai Ryssdal and Kimberly Adams delve into the tumultuous world of tariffs that have been shaking the U.S. economy. With rising concerns from listeners and significant market fluctuations, Ryssdal and Adams break down the complexities of current tariff policies, their historical context, and the broad-reaching impacts on businesses and consumers alike.

Listener Mailbag: Navigating Tariff Turbulence

Understanding the Surge in Tariffs

The episode kicks off with listener questions about the abrupt escalation in tariffs. John from Canton City shares his foresight regarding the recent tariff hikes:

"There are still 10% across the board tariffs on everything coming into this country from every country on the planet... We're still in literally what a lot of people thought was the worst case scenario for a while—the 10% across the board tariffs."
[03:01] John, Canton City

Ryssdal responds by clarifying the current state of tariffs:

"On the 20th of January, the average US tariff rate was about 2-3%. Right now, it's substantially higher than that."
[04:40] Kyle Ryssdal

This dramatic increase from approximately 3% to 10% across the board represents a significant shift in U.S. trade policy, affecting imports from virtually all countries.

The Unpredictable Nature of Tariffs

Kimberly Adams highlights the erratic implementation of tariffs under the current administration:

"It's the completely arbitrary and capricious nature of the way it is happening... Imagine tomorrow the entire global economy could wake up with Donald Trump having changed his mind again. We just don't know. It's insanity."
[06:38] Kimberly Adams

This unpredictability not only complicates international trade relations but also creates uncertainty for businesses planning their operations and budgets.

Impact on Businesses and Consumers

Michelle from Phoenix Valley shares firsthand experiences of how tariffs are disrupting business operations:

"We had one customer place a $1.5 million order on laptops, monitors, and all the peripherals. They started showing up today right after the announcement. You can bet that their Q3 and Q4 budgets have been wrecked because of the tariff issues."
[07:25] Michelle, Phoenix Valley

Adams extends this concern to consumers:

"How many people did we hear from who bought new iPhones or bought new computers or bought cars, trying to get ahead of this and people plan their spending kind of carefully... that's going to affect spending moving forward."
[08:08] Kimberly Adams

The ripple effect of increased tariffs leads to higher costs for consumers and disrupts business forecasts, potentially dampening economic growth.

Political Context and Historical Comparisons

Adams reflects on the pattern of tariff announcements and reversals reminiscent of previous administrations:

"Trump will announce something that seems extraordinarily extreme. People freak out, and then he'll dial it back to something less extreme but still a significant change from where we started."
[05:03] Kimberly Adams

She further compares current tariffs to historical data, referencing a chart from the Peterson Institute of Economics which illustrates the escalation of tariffs over time, particularly focusing on U.S.-China relations.

Educational Insights: Teaching Economic Concepts

An intriguing segment features Kevin from Anaheim, California, a fifth-grade teacher who has adapted his curriculum to include lessons on tariffs and trade deficits:

"I’ve had to teach tariffs and trade deficits to fifth graders. Never would I have imagined I’d have to do that. My students are understanding it. They’re rolling with it... better than anyone currently hanging out inside 1600 Pennsylvania Avenue."
[08:39] Kevin, Anaheim

Adams shares her approach to simplifying complex economic terms for young students:

"If you have a cookie and you want to sell it to your friends, and all the different ingredients for your cookie start to go up... we walked through examples using the ingredients for chocolate chip cookies. They got it."
[09:52] Kimberly Adams

This creative teaching method underscores the necessity of making economic discussions accessible to all age groups, especially in turbulent times.

Market Reactions: The "Sad Happy Music"

The hosts touch upon the emotional rollercoaster of market responses to tariff news. Dr. Worm, Ph.D. humorously asks about the appropriate background music during volatile market days:

"What was the sad music that played as you did the numbers yesterday?"
[10:59] Dr. Worm, Ph.D., Blue Sky

Ryssdal explains the concept of "sad happy music," a minor key melody that reflects the mixed emotions of market fluctuations:

"We went with what we call the sad happy music... it was during the financial crisis and we couldn’t play the happy music when things are falling apart."
[11:00] Kyle Ryssdal

This metaphor perfectly captures the bittersweet nature of economic news—simultaneously acknowledging the necessity of upward movement while recognizing underlying instability.

Conclusion and Looking Ahead

As the episode wraps up, Ryssdal and Adams invite listeners to engage further with the topics discussed:

"We want to keep hearing your thoughts on tariff news or questions that you got or how you are experiencing this economy..."
[12:07] Kyle Ryssdal & Kimberly Adams

Listeners are encouraged to contribute their experiences and questions through email or voicemail, ensuring that the conversation around tariffs and economic policies remains dynamic and inclusive.

Key Takeaways

• Current Tariff Landscape: The U.S. has implemented a 10% across-the-board tariff on imports, a significant increase from the previous 2-3%, affecting nearly all countries except specific exclusions.

• Economic Uncertainty: The arbitrary nature of recent tariff changes underlines a period of economic unpredictability, complicating business planning and consumer spending.

• Business Impact: Both medium-sized and larger businesses are experiencing disrupted budgets and supply chains, while consumers are altering spending habits in response to rising prices.

• Educational Adaptations: Educators are finding innovative ways to incorporate complex economic topics like tariffs and trade deficits into their curricula, ensuring younger generations understand these critical issues.

• Market Sentiments: The concept of "sad happy music" encapsulates the mixed emotions of market responses amid tariff-induced volatility, highlighting the nuanced impacts of economic policies.

Make Me Smart continues to decode the complexities of today's economic climate, providing listeners with insightful analyses and actionable information to navigate the ever-evolving landscape. Stay tuned for more episodes that make sense of the headlines and empower you with knowledge.