Reflecting on the year in tariffs

Summary

Marketplace Morning Report – “Reflecting on the Year in Tariffs”

Date: April 2, 2026
Host: Sabri Benishore (in for David Brancaccio)

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Episode Overview

This episode takes a closer look at the economic effects of the so-called “Liberation Day” tariffs enacted a year ago, their eventual Supreme Court reversal, and what the past year revealed about their broader impact on American businesses, consumers, international relations, and political lobbying. It also features a segment on the rise and risks of private credit markets, with expert insights on whether we should worry about this largely unregulated sector.

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Key Discussion Points & Insights

1. Reflecting on the Year in Tariffs

[01:09–03:28]

• The Tariffs’ Origins and Demise

  • The episode marks the one-year anniversary of the president’s announcement of the Liberation Day tariffs, presented dramatically with a chart on the Rose Garden lawn.
  • The tariffs changed several times before being struck down as unconstitutional by the Supreme Court earlier in 2026.

• Impact on US Businesses & Consumers

  • Kimberly Adams (Marketplace Senior Washington Correspondent):
    "The tariffs were mostly paid by US consumers and small businesses." [01:40]
  • Justine Kahn, founder & CEO of California skincare company Botnia, provides a real-world example:
    • Essential materials and packaging imported from abroad (France, Spain, Tibet) became significantly more expensive.
    • Quote by Tomas Peskorsky (Columbia Business School Professor):
      “If we placed a $10,000 order, now it costs us $15,000 and so that has really impacted our business.” [01:58–02:04]

• Economic Impact: Not Catastrophic, But Harmful

  • Kimberly Adams asks economists about the overall effect:
    • Ryan Young (Competitive Enterprise Institute) notes that the impact was less severe than feared because: “The enacted tariff rates were roughly half of what the president threatened…” [02:18–02:22]
    • Still, Adams reports: "Higher prices for businesses and consumers across many sectors, bruised relations with our allies, and very few if any of the economic benefits the Trump administration promised." [02:30]

• Dramatic Rise in Lobbying

  • Scott Lincecome (Cato Institute):
    “The offer of exemptions and the prospect of new tariff protection has led to a dramatic rise in lobbying on trade in Washington, a six fold increase…” [02:46–02:58]
    • Industries scramble for either exemptions or protection, fueling more activity in Washington than substantive economic benefit.

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2. The Rise of Private Credit & Hidden Financial Risks

[04:52–08:43]

• What is Private Credit?

  • Non-bank firms increasingly lending to businesses—“private credit”—has become a major force in the financial sector.
  • These private credit funds are less regulated than banks, raising concerns.

• Who Invests in Private Credit Funds?

  • Tomas Peskorsky (Columbia Business School):
    “They are primarily financed by equity pooled from limited partners… Think about pension funds, money managers, family offices, university endowments. But recently there is also a push to bring more retail investors into private credit space.” [05:35]

• Investor Redemption Limits—Good or Bad?

  • Some private credit funds restrict when investors can withdraw their money.
  • Peskorsky explains:
    "It's not necessarily good for investors, but it increases the stability of the system because these funds do not have to liquidate the assets quickly and it limits the potential of the run." [06:09]

• How Risky Are These Funds?

  • Unlike banks, private credit funds are conservatively structured, with about two-thirds of their capital from equity investors, only one-third from banks.
  • Peskorsky:
    “The private credit funds just have much less debt use and much less leverage. And leverage is an important propagator of financial crisis.” [06:43]

• Anxiety Meter: Should We Worry?

  • Sabri Benishore: "On a scale of 1 to 10... where should we be?" [07:28]
  • Peskorsky:
    "Regarding the private credit funds themselves, I would put it at 4 to 5." [07:40]

• What Could Change That?

  • Peskorsky worries more about the stability of traditional banks, which remain heavily leveraged and exposed to interest rate risks.

    “What worries me more is the state of the banking sector in US. The banks are still very heavily levered. They have exposure to rising interest rates and interest rates are sticky. They’re not going down. So I think the system is not fully stable.” [07:52]

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Notable Quotes & Memorable Moments

• Tomas Peskorsky on the practical impact of tariffs:
  "If we placed a $10,000 order, now it costs us $15,000..." [01:58]
• Ryan Young on economic damage limitation:
  "The enacted tariff rates were roughly half of what the president threatened..." [02:22]
• Kimberly Adams summing up the tariffs' results:
  "Higher prices for businesses and consumers across many sectors, bruised relations with our allies, and very few if any of the economic benefits..." [02:30]
• Scott Lincecome on lobbying:
  “The offer of exemptions and the prospect of new tariff protection has led to a dramatic rise in lobbying...” [02:46]
• Tomas Peskorsky’s anxiety scale:
  “Regarding the private credit funds themselves, I would put it at 4 to 5.” [07:40]
• Peskorsky on bigger financial risks:
  "What worries me more is the state of the banking sector in US. The banks are still very heavily levered..." [07:52]

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Important Segment Timestamps

• 01:09 – Main story: One year since “Liberation Day” tariffs
• 01:40 – Tariff impact on small businesses & real-world example
• 02:18 – Economists comment on economic damage
• 02:30 – Assessment of tariff results, mention of lobbying increase
• 04:52 – Segment on the rise of private credit
• 05:35 – Who are the private credit fund investors?
• 06:09 – On stability and redemption limits
• 06:43 – The risk assessment of private credit funds versus banks
• 07:40 – Peskorsky’s “anxiety meter”
• 07:52 – Risks in the US banking sector

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Conclusion

This Marketplace Morning Report episode offers a compact but thorough review of the recent year’s tariff experiment and its fallout—hurting consumers and small businesses, souring foreign relations, and fueling new lobbying activity. In the second half, listeners get an accessible yet nuanced briefing on the growing private credit sector, with expert insights on why—despite some headline concerns—the real risks may still lie within traditional banks.
The episode’s expert voices, real-world business stories, and clear, concise economic analysis make it worthwhile listening for anyone interested in US economic policy, business, or finance.

Transcript

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[Sabri Benishore (Marketplace Correspondent)]

The year in Tariffs from Marketplace I'm Surrey Ben ashore in for David Brancaccio. A year ago today, the President pulled out a chart in the now paved over Rose Garden lawn and unleashed chaos onto global supply chains. He announced a so called Liberation Day tariffs, which would go on to change a bunch of times before being struck down as unconstitutional by the Supreme Court earlier this year. Marketplace Senior Washington correspondent Kimberly Adams has more on what the year in tariffs has meant for the economy.

[Kimberly Adams (Marketplace Senior Washington Correspondent)]

The tariffs were mostly paid by US Consumers and small businesses. Justine Kahn is founder and CEO of Botnia, a skin care company based in California. She's been dealing with pricier essential oils from France, packaging from Spain, herbs from

[Sabri Benishore (Marketplace Correspondent)]

Tibet, and so what used to cost,

[Tomas Peskorsky (Columbia Business School Professor)]

you know, if we placed a $10,000 order now costs us $15,000 and so

[Sabri Benishore (Marketplace Correspondent)]

that has really impacted our business.

[Kimberly Adams (Marketplace Senior Washington Correspondent)]

When I ask economists about the broader

[Narrator/Advertiser for Puerto Rico Investment]

economic impact, it's thankfully not been an utter disaster.

[Kimberly Adams (Marketplace Senior Washington Correspondent)]

Ryan Young is with the Competitive Enterprise

[Sabri Benishore (Marketplace Correspondent)]

Institute because the enacted tariff rates were

[Narrator/Advertiser for Puerto Rico Investment]

roughly half of what the president threatened

[Sabri Benishore (Marketplace Correspondent)]

at the Rose Garden press conference, but

[Narrator/Advertiser for Puerto Rico Investment]

it's still been pretty bad.

[Kimberly Adams (Marketplace Senior Washington Correspondent)]

Higher prices for businesses and consumers across many sectors, bruised relations with our allies, and very few if any of the economic benefits the Trump administration promised. But one industry has gotten a boost, says Scott Lincecome at the Cato Institute.

[Sabri Benishore (Marketplace Correspondent)]

The offer of exemptions and and the prospect of new tariff protection has led to a dramatic rise in lobbying on

[Kimberly Adams (Marketplace Senior Washington Correspondent)]

trade in Washington, a six fold increase, according to Lincecome. As just about every industry affected by tariffs looks for a way to get out of paying them in Washington. I'm Kimberly Adams for Marketplace.

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[Sabri Benishore (Marketplace Correspondent)]

You know how banks give out loans to businesses? Well, they are not the only ones that do that. Increasingly, private firms that are not banks have gotten into the business of loaning money to businesses. This is what we call private credit and it has been causing some anxiety recently because these firms that are acting like banks are not regulated by banks and some of them are looking a little shaky. Columbia Business School professor Tomas Peskorsky reviewed 1200 private credit funds covering most of the market. And in a recent paper he argues we may not actually need to worry just yet. Tomas, good morning.

[Tomas Peskorsky (Columbia Business School Professor)]

Good morning.

[Sabri Benishore (Marketplace Correspondent)]

Whose money is in these companies? Like who or what are the investors?

[Tomas Peskorsky (Columbia Business School Professor)]

They are primarily financed by equity pulled from limited partners. Typically these limited partners are institutional investors. Think about pension funds, money managers, family office, university endowments. But recently there is also push to bring more retail investors into private credit space.

[Sabri Benishore (Marketplace Correspondent)]

Some of these private credit firms have told their investors, you cannot take all of your money out right now, which sounds very sketchy. How much trouble is this sector in private credit?

[Tomas Peskorsky (Columbia Business School Professor)]

Funds are structured very differently. They use long term capital in the form of these equity investors. So when there is a trouble and investor want to withdraw money, they cannot do it quickly. It's not necessarily good for investors, but it increases the stability of the system because these funds do not have to liquidate the assets quickly and it limits the potential of the run. Like the random banks we've seen in

[Sabri Benishore (Marketplace Correspondent)]

2023, people think back to the great financial crisis. Why not be worried about it in that way?

[Tomas Peskorsky (Columbia Business School Professor)]

Private credit funds are much more conservatively structured. 65 to 70% of the capital comes from these limited partners, the equity holders and the banks. The traditional banking sector has exposure to these private credit funds, but they only finance about 30 to 35% of the operations. For a typical bank to suffer a loss on the private credit fund loan, the assets of these funds would have to decline 60, 70% compared to only 10% for a regular bank. In other words, to put it in layman terms, the private credit funds just have much less debt use and much less leverage. And leverage is an important propagator of financial crisis.

[Sabri Benishore (Marketplace Correspondent)]

On a. On a scale of 1 to 10 of of anxiety or worry where 1 is no anxiety and then 10 is like great financial crisis level anxiety, where should we be?

[Tomas Peskorsky (Columbia Business School Professor)]

Regarding the private credit funds themselves, I would put it at 4 to 5.

[Sabri Benishore (Marketplace Correspondent)]

Is there anything that could happen in private credit that would raise your anxiety level?

[Tomas Peskorsky (Columbia Business School Professor)]

So I could imagine a situation when we have what I would call a valuation contagion. The fact that these private credit funds will start seeing outflows of limited partners and equity investors from them. That could result in general perception that quality of credit in the entire market outside of private credit too is not great. What worries me more is the state of the banking sector in US the banks are still very heavily levered. They have exposure to rising interest rates and interest rates are sticky. They're not going down. So I think the system is not fully stable. And especially in the banking sector, there are a lot of hidden risks.

[Sabri Benishore (Marketplace Correspondent)]

Tomas Piscorsi is professor of Finance and Real Estate at Columbia Business School. Thank you so much.

[Tomas Peskorsky (Columbia Business School Professor)]

Thanks for having me.

[Sabri Benishore (Marketplace Correspondent)]

In New York, I'm Sabri Benishore with the Marketplace morning report. From APM American Public Media.

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