Marketplace Morning Report – "Getting spendy to get ahead of tariffs"

Date: August 18, 2025
Host: Nancy Marshall Genzer (in for David Brancaccio)

Episode Overview

This short episode unpacks recent trends in consumer spending and the broader effects of tariffs and government policies on the US economy. With a focus on retail sales, the housing market, and venture capital—especially for women-led startups—the show offers concise, on-the-ground perspectives. The tone is lightly inquisitive, weaving together statistical highlights and real-world interviews.

Key Discussion Points & Insights

1. Surging Consumer Spending: Big-Ticket Buys Despite Uncertainty

Segment: [00:47–02:37]

• Retail sales have seen a notable uptick, particularly for higher-priced durable goods.

  • Car dealer sales: Up 4.7% in July vs. prior year.
  • Furniture sales: Up 5.1% year-over-year.

• Marketplace’s Matt Levin visits Brenner's Furniture in Eugene, Oregon:

  • Sales are up 20% month-over-month; more store traffic than last year.

  • Lance Miles (GM, Brenner’s Furniture):

    “Yeah, I have no clue, man. It doesn't make any sense to me.” [01:42]

  • While sales soar, customers are gravitating towards less expensive options (e.g., $500 sofas).

    “I think we're seeing more people coming in getting the less expensive stuff.” – Lance Miles [01:59]

• Possible Explanation for the Surge:

  • Max Kahn (Coresight Research):
    • Wealthy consumers are buying now to get ahead of anticipated tariff-fueled price hikes.

    "People are making the purchases now while they perceive that prices are staying kind of where they've been." [02:18]

    • The spree likely won’t last; durable goods like sofas aren’t frequent purchases:

    "You typically don't buy sofas multiple times a year." – Max Kahn [02:29]

2. Housing Market: Homebuilders Remain Pessimistic

Segment: [02:37–03:53]

• Builder sentiment remains low, with the NAHB Confidence Index lagging.

• Contributing Factors:

  • High mortgage rates.
  • Tariffs creating market uncertainty.

• Recent developments:

  • Builders have cut prices to incentivize sales.
  • Single-family home construction: Down during the summer.
  • Multifamily projects: Slight growth.

• Outlook:

  • Mortgage rates have fallen to their lowest since October last year but remain elevated compared to pre-pandemic levels.
  • Housing market is "frozen" as current owners hesitate to sell and lose their low rates.

3. Venture Capital & Startups: Headwinds for Investment

Segment: [04:54–08:20]

• Headline: U.S. startup funding up 75% in H1 2025—but overall capital raised by venture firms is down.

• Key headwinds:

  • Tariffs.
  • Canceled government grants/contracts (especially post-policy changes under the Trump administration).

• Guest Interview:

  • Joanne Corcoran (Co-CEO, Golden Seeds) discusses the impact on women-led startups.

    “About 50% of the things that we do, the companies in which we invest, are either bio and life sciences related or deep tech related... They have really had to stop and reevaluate.” [05:44]

• Effect of Tariffs and Policy Cuts:

  • Startups that typically would scale production offshore to cut costs no longer have that option, due to tariffs.

    “Let's say you're a company who has developed a product in the US at a prototyping facility... In many cases you would go offshore. You can't.” [06:34]

  • Result: Heightened uncertainty reduces startup valuations.

    “There's also this whole uncertainty out there. And for us as investors, when things are uncertain, that means we're going to pay a lower price for them.” – Joanne Corcoran [07:05]

  • Not just women-led companies facing harder terms—affects all new businesses.

• Memorable Example:

  • A Golden Seeds investment in microplastics-removal technology for water treatment faces a headwind as related regulatory action is delayed:

    “With the current state of science in our government, I would say that the chances of having that kind of legislation are pushed out. So that tailwind has declined a little bit.” – Joanne Corcoran [07:58]

Notable Quotes & Memorable Moments

• “Yeah, I have no clue, man. It doesn't make any sense to me.”
  – Lance Miles, GM of Brenner's Furniture, on why sales are up during economic uncertainty [01:42]

• “People are making the purchases now while they perceive that prices are staying kind of where they've been.”
  – Max Kahn, Coresight Research [02:18]

• “When things are uncertain, that means we're going to pay a lower price for them.”
  – Joanne Corcoran, Golden Seeds [07:05]

• “With the current state of science in our government, I would say that the chances of having that kind of legislation are pushed out. So that tailwind has declined a little bit.”
  – Joanne Corcoran, on regulatory delays impacting startup prospects [07:58]

Timestamps for Important Segments

• 00:47 – Consumer spending data, retail sales jump
• 01:23–02:37 – On the ground at Brenner’s Furniture: consumer behavior, impact of tariffs
• 02:37–03:53 – Housing market update: builder outlook and mortgage rates
• 04:54–08:20 – Venture capital, impact of tariffs and government policy on startups (interview with Joanne Corcoran)

Summary

This episode of Marketplace Morning Report explores why Americans are spending big on cars and furniture despite economic clouds, identifies the influence of tariffs on consumer behavior, and spotlights headwinds facing startups—especially when policy decisions are in flux. Both consumer and investor behavior reveal how uncertainty and the specter of higher costs spur present-day decisions, but also cool long-term confidence, from the furniture showroom to the venture capital boardroom.