Marketplace Morning Report: "New Day, New Tariffs"

Date: September 30, 2025
Host: Sabri Benishour (in for David Brancaccio)
Duration: ~10 minutes

Episode Overview

This episode dives into the latest round of tariffs announced by the Trump administration—this time targeting foreign timber and wood products, exploring the economic and political implications. Other top stories include the looming government shutdown, its potential impact on jobs data, and an unusual housing market trend where existing home prices have surpassed new home prices. Interviews with economists, market analysts, and industry leaders provide context to these fast-moving events.

Key Discussion Points & Insights

1. New Tariffs on Timber and Wood Products

[01:06–02:20]

• The Trump administration has announced fresh tariffs citing national security concerns:
  • 10% tariff on timber and lumber imports
  • 25% tariff on wooden furniture, vanities, and kitchen cabinets
• The tariffs take effect October 14, with further increases on January 1 (furniture tariff to 30%, vanities/cabinets to 50%).
• Carveouts: 10% max on UK wood, 15% for EU and Japan.
• Impact:
  • Rationale from the administration: mitigation of U.S. lumber mill closures.
  • Pushback from builders: "Higher lumber tariffs will increase housing costs." (Nancy Marshall Genser, [01:32])

Notable Quote:

“The National Association of Homebuilders, though, says higher lumber tariffs will increase housing costs.”
— Nancy Marshall Genser, [02:08]

2. Looming Government Shutdown

[02:20–02:45]

• No agreement reached between President Trump and congressional leaders to avert a government shutdown, likely to start at midnight.
• Markets are responding—Dow, S&P, and NASDAQ futures down 2-3 tenths of a percent.

3. Housing Market Anomaly: Existing vs. New Home Prices

[02:45–06:06]

• For five consecutive months, median price of existing homes has been higher than that of new homes—a rare inversion.
• Usual trend: new homes cost more due to features and condition.
• Factors:
  • Elevated interest rates prompting builders to scale down and offer price cuts on new homes.
  • Existing homeowners locked into low mortgage rates, less willing to sell.
  • Inventory dynamics: Number of existing homes increasing, but ~20% of sales are above list price.
  • Regional skew: Nearly 70% of new home sales occur in the South, where housing prices are lower.
  • New home price softness could signal broader market weakness.

Notable Quotes:

"New things are generally more expensive than used things—a newly built house, for instance, has all the updated trends."
— David Brancaccio, [03:14]

“Existing home sellers are just entrenched in their homes. They have no motivation to move from low interest rate mortgages.”
— Jessica Lautz, [04:34]

“They are willing to become accidental landlords and to hold onto those properties.”
— Jessica Lautz, [04:57]

“Home builders experience it first and react, so it just takes a while longer to actually hit the resale markets.”
— Rick Palacios, [05:35]

4. Impact of a Government Shutdown on Economic Data

[07:34–09:17]

• The Department of Labor will not release scheduled Bureau of Labor Statistics (BLS) reports during a shutdown, including the crucial monthly jobs report.
• This creates uncertainty for analysts and policymakers.
• Alternative reports (e.g., from ADP) cannot fully substitute for BLS data, as they are "quite noisy" and lack comprehensive coverage.

Notable Quotes:

"The BLS jobs report is the data equivalent of tasting the job market soup."
— Daniel Zhao, Glassdoor, [08:15]

“If the numbers come out on Tuesday instead of Friday, that’s not tragic. But if this goes on for more than a few days, then it becomes a big problem, potentially pushing back data collection for October.”
— Jesse Rothstein, former Department of Labor Chief Economist, [09:01]

Memorable Moments, Quotes, and Speaker Attribution

• On Tariffs:
  • “[New tariffs] will all take effect October 14... On January 1, the furniture tariff rises to 30% and the vanity and cabinet tax increases to 50%.”
    — Nancy Marshall Genser, [01:32]
• On Housing Market Oddity:
  • “Median existing home price is now higher than the median new home price. This has been pretty rare in the half century that people have been tracking this kind of thing.”
    — Sabri Benishour, [02:20]
• On Homebuyers’ Mentality:
  • "They're willing to become accidental landlords and to hold onto those properties."
    — Jessica Lautz, [04:57]

Timestamps for Key Segments

• Tariffs on Timber and Wood: [01:06–02:20]
• Market/Jitters over Shutdown: [02:20–02:45]
• Housing Market Inversion Report: [02:45–06:06]
• Labor Department & BLS Delay: [07:34–09:17]

Tone and Style

The episode maintains Marketplace’s trademark brisk, informative, and at times lightly conversational tone, featuring concise explanations, expert soundbites, and real-world impact.

Summary

This episode covers a whirlwind of economic developments: new U.S. tariffs on foreign wood products (and their likely consequences for housing costs), uncertainty wrought by a prospective government shutdown (and how markets are reacting), a unique flip in housing market price trends, and the far-reaching implications of potentially missing federal jobs data. Laced with voices from economists and industry insiders, it delivers a succinct, highly informative snapshot of the day’s top economic stories—vital for anyone tracking business and policy developments in real time.