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)

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.

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.

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]

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]

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.

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.