A look at who's footing the bill for all those tariffs

Summary

Marketplace Morning Report

Episode: A look at who's footing the bill for all those tariffs
Date: February 13, 2026
Host: Sabri Ben-Achour (for David Brancaccio)

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Overview

This episode focuses on the reality of tariff costs in the U.S. – who truly pays for them – and the economic repercussions, particularly for businesses and consumers. It also touches on recent inflation data and explores the concept of “financial infidelity” ahead of Valentine’s Day.

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Key Discussion Points & Insights

1. Who Really Pays for Tariffs?

Segment Start: 00:48

• Tariffs & Their Impact:
  Sabri Ben-Achour opens by dismantling the claim, often made by political leaders, that tariffs are paid by foreign entities. Instead, both economists and new Federal Reserve research find the ultimate burden falls on Americans.

• Research Findings:
  Nancy Marshall Genzer reports that:

  • The average U.S. import tariff rate jumped from 2.5% to 13% last year.
  • Exporters did slightly lower prices, but 90% of tariff costs are shouldered by U.S. businesses and consumers.
  • The Congressional Budget Office (CBO) reports that U.S. businesses absorb only about 30% of tariffs; 70% is passed directly to consumers.

• Impact on Households:

  • The nonpartisan Tax Foundation found Trump-era tariffs equated to a $1,000 tax increase per U.S. household last year, rising to $1,300 this year.

• Expert Quote:

  “US businesses and consumers still ended up shouldering nearly 90% of the cost of import taxes.”
  — Nancy Marshall Genzer [01:46]

• Jerome Powell's Take:

  • The Fed Chair expects tariffs to cause a one-time jump in prices, lifting the general cost of living.

2. Inflation Update & Fed Response

Segment Start: 02:28

• Recent Data:
  January inflation slowed, with prices rising just 0.2%. Year-over-year inflation is 2.4%, the lowest since May of the prior year.

• Analysis from Chris Lowe (FHN Financial):

  • Some price increases, initially in anticipation of tariffs, are now easing.
  • Since September, inflation has gradually receded.

• Prospects for Fed Rate Cuts:

  • Despite improvement, the data isn’t strong enough for the Fed to accelerate rate cuts; further progress is needed.

• Expert Quotes:

  “In January, the headline CPI fell to 2.4%. It’s under 2.5% for the first time since last April.”
  — Christopher Lowe [02:56]

  “While [the inflation numbers] were better than expected, they're not better enough to justify the market pricing in more rate cuts just yet.”
  — Christopher Lowe [03:45]

3. Financial Secrets & Relationships (“Financial Infidelity”)

Segment Start: 05:18

• Link to Valentine's Day:
  With the holiday approaching, the podcast highlights how money is often a source of relationship tension—sometimes resulting in financial secrets.

• Street Interviews in Portland, OR:

  • Some people admit to financial secrecy; others believe it’s okay to have one’s own “part of your money.”
  • Differentiation between personal spending and outright deception is discussed.

• Survey Data:

  • 40% of adults see financial secrecy as bad as physical cheating (Bankrate survey).
  • Nearly half in committed relationships don’t fully know their partner's finances.

• Expert Insights:

  • Randy Kessler (Divorce Lawyer) notes that hidden assets/date come to light mostly during legal proceedings; “People try to hide assets all the time. They make it hard to find them because if you can’t find them, you can’t divide them.” [06:55]
  • Jeff Gunther (Couples Therapist) highlights the importance of context in secrets—there’s a difference between concealing an addiction versus minor purchases. He stresses:

    “Financial transparency is something that is earned. It's not something that's just given just because you're in a committed relationship...this is something that has to build over time.” [07:39]

  • Money secrecy often reflects a desire for privacy rather than deception; it’s about individual comfort levels and relationship communication.

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Notable Quotes & Memorable Moments

• Sabri Ben-Achour on Tariff Misconceptions:

  “Turns out the tariffs are being paid by—drum roll please—US. Not foreign companies, US.” [00:48]

• Nancy Marshall Genzer on Consumer Burden:

  “US businesses and consumers still ended up shouldering nearly 90% of the cost of import taxes.” [01:46]

• Christopher Lowe on Inflation Trends:

  “I think what you’re seeing in January is some of the companies that started raising prices in anticipation of tariffs a year ago. Those price increases are now dropping out...” [02:56]

• Randy Kessler on Divorce and Finances:

  “The biggest dispute in a divorce or marital situation is not about how to get a bigger percentage, but it’s what are we fighting about? What is the marital pot?” [06:55]

• Jeff Gunther on Relationship Transparency:

  “Financial transparency is something that is earned. It’s not something that’s just given just because you’re in a committed relationship...” [07:39]

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Timestamps for Major Segments

• Who Pays for Tariffs? [00:48–02:28]
• Inflation Update & Fed Response [02:28–04:09]
• Financial Infidelity & Valentine's Day [05:18–08:06]

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Takeaways

• U.S. businesses and consumers, not foreign companies, pay the vast majority of tariffs, leading to notable increases in cost of living.
• Inflation is showing signs of easing, but not enough for the Fed to act quickly on rate cuts.
• Financial secrecy in relationships is common and complex, often rooted in personal history or differing views on privacy and trust.

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This episode blends clear, data-driven economic analysis with relatable social issues, perfect for listeners wanting both a financial update and thoughtful insight into real-world relationship dynamics.

Transcript

[Podcast Announcer]

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[Sabri Ben-Achour]

Turns out the tariffs are being paid by Drum roll please. US Not Foreign Companies, US From Marketplace, I'm Sabri Ben, ashore in for David Brancaccio. President Trump has long insisted that foreign companies paid for the tariffs he's levied on imports. Economists have long insisted that is not how tariffs work. And new research from the Federal Reserve bank of New York indeed finds that US Firms and US Consumers have been paying almost all of the tariffs marketplaces. Nancy Marshall Genzer has more on that.

[Nancy Marshall Genzer]

The New York Fed says last year the average tariff rate on US imports increased from about 2.5% to 13%. Now exporters can share the tariff burden by lowering their prices. The New York Fed says exporters did drop their prices a tiny bit, but US businesses and consumers still ended up shouldering nearly 90% of the cost of import taxes. Then the question is, how much of that do consumers pay? The Congressional Budget Office took a look at that in a report this month on the budget and economic outlook. The CBO says US business owners will absorb just 30% of the hit from tariffs, with the remaining 70% passed through to consumers. Fed Chair Jerome Powell has said import taxes will cause a one time price increase, which would cause the overall cost of living to rise. The nonpartisan Tax foundation found in a report last fall that President Trump's tariffs resulted in an average tax increase of $1,000 per U.S. household last year, rising to $1,300 this year. I'm Nancy Marshall Genser for Marketplace.

[Sabri Ben-Achour]

Inflation in the US slowed down in January. Prices still rose, of course, 2.10of a percent, but that's an improvement from the months before. Year over year, prices were up 2.4%. The annual rate hasn't been that low since May. Chris Lowe joins us to talk about it. He's chief economist at FHN Financial in New York. Hi Chris.

[Christopher Lowe]

Good morning, Sabri.

[Sabri Ben-Achour]

So you know, overall seems like inflation's on the downward trend. What's your takeaway?

[Christopher Lowe]

A little tamer than expected. In January the headline CPI fell to 2.4%. It's under 2.5% for the first time since last April. I think what you're seeing in January is some of the companies that started raising prices in anticipation of tariffs a year ago. Those price increases are now dropping out and you know, we since September have seen inflation gradually retreating.

[Sabri Ben-Achour]

Does this downward trending inflation report mean the Fed is going to be in more of a hurry to lower interest rates?

[Christopher Lowe]

Looking at just this month's numbers, While they were better than expected, they're not better enough to justify the market pricing in more rate cuts just yet. I think the Fed is going to want to see further progress in the next few months before they do anything with rates.

[Sabri Ben-Achour]

Christopher Lowe, Chief Economist at FHN Financial, thanks as always.

[Christopher Lowe]

Thank you, Sabri.

[Podcast Announcer]

This Marketplace podcast is supported by Viking, committed to exploring the world in comfort. Journey through the heart of Europe on an elegant Viking longship with thoughtful service, destination focused dining and cultural enrichment on board and on shore. And every Viking voyage is all inclusive with no children and no casinos.

[Sponsor Announcer]

Discover [e-mail] this Marketplace podcast is supported by Wealth Enhancement, who understand that dreams don't happen by chance. It takes a plan. They're ready to build your wealth. Blueprint for retirement, investing taxes and everything else your financial life brings. It reveals gaps and highlights opportunities you may have missed and at no cost to you. Find out [e-mail] Blueprint.

[Sabri Ben-Achour]

Tomorrow is Valentine's Day. It is a holiday about love and for a lot of people, it is also about spending money. Coincidentally, money can be a big source of tension in a relationship. Sometimes those tensions can turn into financial secrets. What's sometimes called financial infidelity. That is something our colleagues at the Marketplace podcast this is uncomfortable have been digging into. Here's host, Rima Craise.

[Rima Craise]

I asked people on the streets of Portland, Oregon, have you ever kept a financial secret from a partner?

[Interviewee]

No.

[Rima Craise]

No, I don't. I. I don't want to hide any. I. I'm not a man of secrets.

[Sabri Ben-Achour]

I do think it is okay if it's your own part of your money.

[Rima Craise]

You don't need to share everything. And you can have even separate bank accounts if you want. Oh well, okay. So like sharing an account probably shouldn't.

[Podcast Announcer]

Be dipping into that pot.

[Rima Craise]

You know what I mean? Have you ever kept a financial secret from a partner?

[Podcast Announcer]

Yeah.

[Rima Craise]

Yes, I have.

[Podcast Announcer]

Yeah.

[Rima Craise]

I learned that lesson the hard way. I would rather have the trust than.

[Podcast Announcer]

The little bit of money in my pocket.

[Rima Craise]

About 40% of adults believe keeping financial secrets in a relationship is at least as bad as physical infidelity. That's according to a recent survey from Bankrate. But that same survey also says nearly half of Americans in committed relationships admit that they don't know everything about their partner's finances.

[Expert Guest]

Some people are very uncomfortable with even their spouse knowing what they earn or how much they make or how little they make.

[Rima Craise]

That's Randy Kessler, a divorce lawyer based in Atlanta. He says once lawyers get involved, couples have to open their financial records, and that's when secrets often surface, like second bank accounts or hidden income.

[Expert Guest]

The biggest dispute in a divorce or marital situation is not about how to get a bigger percentage, but it's what are we fighting about? What is the marital pot? People try to hide assets all the time. They make it hard to find them because if you can't find them, you can't divide them.

[Rima Craise]

But of course, not every money secret ends in divorce court. Couples therapist Jeff Gunther says there's a big difference between hiding a gambling addiction and not mentioning you bought a new sweater.

[Interviewee]

I think most people want some form of privacy, and a lot of it comes from, like, I don't want to be judged by my partner, just like, I want to be able to, like, purchase whatever they want to purchase on Amazon.

[Rima Craise]

Gunther says it's not necessarily a problem if couples want some level of financial privacy, especially if they're on the same page about what to share.

[Interviewee]

Financial transparency is something that is earned. It's not something that's just given just because you're in a committed relationship or whatever. Like, this is something that has to build over time.

[Rima Craise]

And he says so much of it depends on each person's background, like their past relationships and their experiences with money. Which is why money secrets are sometimes less about deception and more about the need for communication. I'm Rima Reis for Marketplace.

[Sabri Ben-Achour]

For more stories that explore our relationship with money, check out our weekly podcast, this Is Uncomfortable. New episodes every Thursday. Available where you get your podcasts in New York, I'm Sabri Ben, ashore with the Marketplace Morning Report. From APM American Public Media.

[Rima Craise]

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