Ports showing the impact of Trump's tariffs

Summary

Marketplace Morning Report: Ports Showing the Impact of Trump's Tariffs
Release Date: May 5, 2025

In this episode of Marketplace Morning Report, host David Brancaccio delves into the multifaceted impacts of President Donald Trump's trade policies, particularly focusing on the implementation of tariffs on foreign-made films and Chinese goods. Additionally, the report addresses the rising concern of credit card debt among older Americans. Below is a detailed summary of the key discussions, insights, and conclusions drawn from the episode.

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1. Trump's Tariffs on Foreign-Made Films

Announcement and Immediate Repercussions

The episode opens with Sabri Ben reporting on President Trump's recent announcement to impose a 100% tariff on films imported into the United States. This move marks a significant shift in trade policy, targeting the entertainment industry's international segment.

Nova Sappho provides an in-depth analysis of the implications:

• Selective Targeting: While the tariff explicitly targets movies, TV series remain exempt. Sappho notes, "President Trump wants to institute a hundred percent tariff on films made outside of the United States" (00:01).
• Implementation Uncertainties: There is ambiguity surrounding the duration of the tariffs and the methodology for valuation and taxation of non-physical goods like films.
• Impact on Production Incentives: The tariffs aim to counteract financial incentives that other countries offer to attract film and TV productions. As a result, there has been a notable decline in film production within the Los Angeles area, which fell by nearly 6% last year, marking its second least productive year after 2020 (00:25).
• Global Shift in Production: Productions are increasingly moving to countries like Canada, the U.K., Australia, and New Zealand. In response, California is considering enhancing its own tax incentives to remain competitive.

2. Impact of Tariffs on Chinese Goods and US Ports

Tariffs on Chinese Imports

Sabri Ben transitions to discuss the broader impact of Trump’s tariffs, specifically the import taxes on Chinese goods, raised to 145% on April 9. These tariffs have begun to exert noticeable effects on U.S. ports and supply chains.

Samantha Fields highlights the immediate consequences:

• Order Cancellations: Following the tariff increase, U.S. importers began canceling orders from China almost immediately.
• Reduced Cargo Ships: "Cargo ships that left China after that date are much emptier and there are many fewer of them," explains James Knightley, chief international economist at ING (01:36).

Anticipated Supply Chain Disruptions

• With a 20 to 30-day transit time across the Pacific, a noticeable drop in arrivals is expected within the week (01:50).
• Shortages and Price Hikes: Samantha anticipates "shortages and higher prices for almost everything you can still get," citing Rob Handfield from North Carolina State University, who warns that "we'll be dealing with this for months, at least" (02:09).
• Long-Term Supply Shock: Handfield further posits, "The supply shock from tariffs could be worse than from the pandemic," underscoring the potential for prolonged economic strain (02:31).

3. Potential Implications for Consumers

Consumer Goods and Retail Impact

The tariffs are expected to ripple through various industries, affecting everything from consumer electronics to everyday household items. "In many industries, people are ordering now for next Christmas. The planning and the ordering takes place nine months to a year ahead of when they're actually sold at the store," notes Chris Farrell (02:19).

Supply Chain Adjustments

• Retailers and manufacturers may face increased costs and reduced supply, leading to higher retail prices and limited availability of certain products during peak shopping seasons.
• Businesses are likely to adjust their inventory and supply chain strategies to mitigate the impact, but this may take time, further delaying relief for consumers.

4. Credit Card Debt Among Older Americans

Prevalence and Causes

Shifting gears, the report examines the rising issue of credit card debt among Americans aged 50 and older. According to a AARP survey, nearly half of individuals in this age group with credit card debt use their cards to cover basic living expenses.

Case Study: Cheryl Hines

Chris Farrell introduces Cheryl Hines, a 74-year-old resident of a 55-plus apartment complex, who shares her personal struggle with credit card debt:

• Background: After a traditional marriage and subsequent divorce, Cheryl found herself "not very good at handling money" and accumulated debt due to dental issues and other expenses (04:23).
• Assistance from Lutheran Social Services (LSS): Cheryl partnered with LSS to enter a debt repayment plan, involving negotiated lower interest rates and automatic monthly payments to creditors. She expresses relief, stating, "It has helped me to realize that you don't have to feel alone, that there is help" (06:11).

Insights from Financial Experts

• Kim Miller of Lutheran Social Services emphasizes the growing trend: "Over 30% of the clients that we are seeing recently are 55 and older. So it's one out of every three people that we see would be considered in that category" (05:05).
• Factors Contributing to Debt: Events such as divorce, medical issues, and the recent surge in inflation rates have disrupted budgets, forcing older adults to rely on credit cards to manage rising costs for essentials like groceries and housing.

Actionable Advice

• Seek Reputable Help: Experts recommend contacting the National Foundation for Credit Counseling, which will connect individuals with vetted credit counseling services in their area.
• Build a Repayment Plan: Working with nonprofit organizations can help older adults negotiate with creditors and establish manageable repayment schedules.
• Encouragement to Seek Assistance: Sabri Ben strongly encourages the older population to "contact a nonprofit credit counseling organization to help build a plan or negotiate with the creditors" (06:31).

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Conclusion

This episode of Marketplace Morning Report underscores the intricate ways in which President Trump's tariff policies are influencing not only international trade and domestic industries but also everyday consumer experiences. Simultaneously, it sheds light on the pressing issue of credit card debt among older Americans, offering both a poignant personal story and practical solutions to a growing financial challenge. Through expert analysis and real-life narratives, the report provides listeners with a comprehensive understanding of these critical economic developments.

Transcript

[Sabri Ben]

The tariffs are coming for movies now from Marketplace, I'm Sabri Ben, ashore in for David Brancaccio. President Donald Trump wants to institute a hundred percent tariff on films made outside of the United States. He made the announcement on Truth Social yesterday, ordering his administration to figure out how to tax something that is not a physical good. Marketplace's Nova Sappho has more.

[Nova Sappho]

There are a lot of questions about President Trump's film tariffs. For one thing, he appears to want import taxes on films, but not TV series. He only referenced movies in his post and in subsequent comments to reporters. We don't know how long it will take to implement the tariffs or how value will be calculated and taxed. What we do know is that the president is aiming at the financial incentives other countries offer to lure film and TV production. Those incentives have worked. A lot of production has moved to Canada, the U.K. australia and New Zealand, among other places. Los Angeles area film production fell nearly 6% last year, its second least productive year after 2020, according to Film LA. The state of California is exploring ramping up its own tax incentives to better compete. I'm NovaSafo for Marketplace.

[Sabri Ben]

It has now been almost a month since President Trump announced he was raising import taxes on all Chinese goods to 145%. That was back on April 9, and the consequences are starting to show up. One place you can see them is at US Ports. Marketplace's Samantha Fields has more.

[Samantha Fields]

Almost as soon as Trump raised tariffs on China, US Importers started canceling orders. James Knightley, chief international economist at ing, says cargo ships that left China after that date are much emptier and there are many fewer of them.

[Sabri Ben]

Given it takes about 20 to 30 days to arrive across the Pacific, we could be seeing the drop off in arrivals coming through this week.

[Samantha Fields]

It'll likely be at least a few more weeks before goods from those ships make it onto shelves.

[Sabri Ben]

There is real concerns as we approach the summer. You could see some shortages of products.

[Samantha Fields]

In the shops, shortages and higher prices for almost everything you can still get. Rob Handfield at North Carolina State University says, we'll be dealing with this for months, at least.

[Chris Farrell]

In many industries, people are ordering now for next Christmas. The planning and the ordering takes place nine months to a year ahead of when they're actually sold at the store.

[Samantha Fields]

He says the supply shock from tariffs could be worse than from the pandemic. I'm Samantha Fields for Marketplace.

[Chris Farrell]

When your company earns unlimited 2% cash back on all purchases with Capital One, that's serious business. So Stephen at Sandcloud got a serious business card. The Spark Cash plus card from Capital One. We used our 2% cash back to.

[Sabri Ben]

Help build our retail presence.

[Chris Farrell]

Savvy Steven and we get big purchasing.

[Sabri Ben]

Power so our business can spend more and earn more.

[Chris Farrell]

The Spark Cash plus card from Capital One. What's in your wallet?

[Cheryl Hines]

Terms and conditions apply. Find out [e-mail] sparkcashplus.

[Sabri Ben]

Nearly half of people who are 50 years or older and who have credit card debt use their cards to pay for basic living expenses. That is according to a survey from aarp. And the trouble with credit card debt is, of course, that it is easy to accumulate and hard to get rid of. But there are strategies to get it down that work. In the next installment of our series, Buy now, pay Later, Marketplace's senior economics contributor Chris Farrell reports.

[Cheryl Hines]

This is an accessible apartment.

[Chris Farrell]

Cheryl Hines is 74 years old and she's quick with a smile. Heinz like the ketchup, she tells me laughing, lives in an apartment in a 55 plus complex on the outskirts of the Twin Cities. She moved into the high rise about a decade ago. She was a nurse for much of her career. She also worked in physical therapy, domestic abuse and as a receptionist. Heinz has credit card debt.

[Cheryl Hines]

When I married it was very traditional and my ex husband controlled a lot of the finances and it was kind of a very traditional marriage. And then when I divorced I was not very good at handling money and so I had to learn. And then with some dental issues and stuff like that, I got into debt and it was easy to put things on credit cards.

[Chris Farrell]

Heinz lives on a fixed income Social Security and a small pension. She turned to Lutheran Social Services, a faith based health and human services organization, for help with their debt. Kim Miller is senior program manager of partnerships and financial education with Lutheran social services.

[Kim Miller]

Over 30% of the clients that we are seeing recently are 55 and older. So it's one out of every three people that we see would be considered in that category, Miller says.

[Chris Farrell]

People often have a good mental picture of their finances. They know how much money is coming in and how much is going out. But something happens. A divorce, medical issues, death of a spouse and they find themselves in debt. High prices for groceries and other basics, also upended budgets during the recent surge in inflation rates.

[Kim Miller]

There's a lot of expenses that even when you're on a fixed income it's hard to maintain like property taxes and homeowners insurance continue to go up which then affect then people's ability to have for discretionary spending and then they turn to credit card debt to be able to float the difference.

[Chris Farrell]

Hines entered a debt repayment plan with Lutheran Social Services. A credit counselor negotiated a lower rate for Heinz, and she agreed to automatic monthly payments to her creditors funneled through the nonprofit. Heinz is relieved.

[Cheryl Hines]

It has helped me to realize that you don't have to feel alone, that there is help.

[Chris Farrell]

For those looking for assistance, it's critical to work with a reputable nonprofit credit counseling service. Tonya Brinston is founder of SLAP Financial Consulting. SLAP stands for Sounds Like a Plan.

[Sabri Ben]

And I also encourage the older population to contact a nonprofit credit counseling organization to help build a plan or negotiate with the creditors. I refer them to speak to a trusted advisor.

[Chris Farrell]

Finance experts like Brinston recommend getting in touch with the national foundation for credit Counseling. The nonprofit will refer you to vetted credit counseling services in your area. I'm Chris Farrow for Marketplace.

[Sabri Ben]

Our Buy Now, Pay later project is in partnership with Next Avenue, a nonprofit news platform for older adults produced by Twin Cities PBS in New York. I'm Sabri Benishore with the Marketplace Morning.

[Chris Farrell]

Report.

[Sabri Ben]

From APM American Public Media.

[Samantha Fields]

Can we invest our way out of the climate crisis? Five years ago it seemed like Wall street was working on it until a backlash upended everything.

[Kim Miller]

So there's a lot of alignment between the dark money right and the oil industry on this effort.

[Samantha Fields]

I'm Amy Scott, host of How We Survive, a podcast from Marketplace, and this season we investigate the rise fall, fall and reincarnation of climate conscious investing. Listen to How We Survive wherever you get your podcasts.