Marketplace Morning Report

Episode: Tariffs to hit a dinner table favorite: Italian pasta
Date: November 11, 2025
Host: David Brancaccio
Reporter: Matt Levin, Savannah Peters

Episode Overview

This episode explores a range of pressing economic topics, with the spotlight on newly announced U.S. tariffs on Italian pasta and their potential ripple effects for importers, consumers, and U.S.-Italy relations. The show also updates listeners on U.S. employment data and reports from New Mexico, where statewide universal daycare subsidies are reshaping the childcare market.

Key Discussion Points & Insights

1. U.S. Tariffs on Italian Pasta

[01:01 - 03:08]

• Introduction to Tariffs:
  David Brancaccio cues up the show with a personal touch, describing his pasta preferences before introducing the news that tariffs will nearly double prices of Italian-made pasta for U.S. consumers, labeling it as a response to “dumping.”

  • “Get set for fettuccine, spaghetti, cavatelli, fusilli, farfalla and my personal favorite, strozza pretti. Made in Italy. They get a lot more expensive than made in America macaroni. The Italians have been selling overly cheap. It's called dumping. And now come tariffs that'll nearly double the price of made in Italy Pasta.”
    —David Brancaccio [01:13]

• Impact on Small Businesses:
  Matt Levin speaks with Bennett Fraboni, co-owner of Fraboni's Italian Specialties in Wisconsin, who describes Italians pastas’ unique texture and says some of the roughly 92% tariff will inevitably be passed to his customers.

  • “They hold their texture...They don't turn into a big glob.”
    —Bennett Fraboni [02:12]

  • “I do worry that we'll lose people to buying stuff from, you know, the big grocery stores, but I try not to lose any sleep over it.”
    —Bennett Fraboni [02:18]

• Broader Trade Implications:
  Ed Gresser, economist at the Progressive Policy Institute, predicts backlash in Italy and more tension in U.S.-Italy trade relations.

  • “I can easily imagine the Italian public...Typical guy in Siena or Palermo will notice this and they may be quite upset about it or feel like I want my government to do something about this.”
    —Ed Gresser (as paraphrased by Matt Levin) [02:45]

• Economic Scale:
  Italy exported over $700 million in pasta to the U.S. last year.

2. Fatherly Pasta Preferences

[03:08]

• Memorable Moment:
  David Brancaccio shares a memory about his father’s strong rules for pairing sauces with the correct pasta shapes.

  • “My dad, Professor Pat Brancaccio, used to absolutely no wiggle room insist that there is a right pasta and a wrong pasta for certain sauces. Like it's gotta be linguine if it's clam sauce and never farfalla for Bolognese. However, I recall he was just fine about buying domestic.”
    —David Brancaccio [03:08]

3. Labor Market Update Amid Government Shutdown

[03:08 - 04:02]

• ADP’s Weekly Jobs Data:
  With typical government data delayed by a shutdown, ADP's more frequent reporting fills the gap, but the latest figures show a weakening job market.

  • “We are taking a look at everything we can get our hands on and perhaps a more timely indicator, something that comes out weekly with about a two week lag, will give us a more real time read on what's going on in the labor market. And unfortunately right now it's saying that we're losing jobs on average over the last four weeks.”
    —Jeffrey Cleveland, Chief Economist at Paden and Riegel [03:41]

• Economist’s Concern:
  Cleveland signals greater worry about job losses than rising inflation.

4. New Mexico’s Universal Daycare Subsidy

[05:08 - 08:36]

• Expansive Daycare Subsidy:
  Savannah Peters visits the Little Corral Day School in Albuquerque, where a state subsidy funded by oil and gas revenues now covers all families’ daycare costs.

• Provider Perspective:
  Natalie Aragon, director, is pleased about improved financial stability but worries about new competitive pressures, as her previous affordability advantage is erased.

  • “In the past we kept our rates low and a lot of families came to us because we were a lot cheaper.”
    —Natalie Aragon [06:42]
  • “We're trying to figure out like where do we market to now? And I believe in our quality and care that that will keep our families. But now people have a lot more options.”
    —Natalie Aragon [06:56]

• Quality & Competition:
  Economist Jessica Brown (U. of South Carolina) warns that marketing and image might initially win out over real quality, challenging centers without sizeable advertising budgets.

  • “Parents aren't very good at judging the quality of care, unfortunately, and so that does make it harder for the providers to compete on like actual quality.”
    —Jessica Brown [07:05]

• Implementation Pains:
  The anticipated surge in demand didn’t materialize immediately, but staff wages were increased in hopeful preparation.

  • “I think a lot of people were like, oh, did you guys get a ton of new kids a day? We're like, no, but we hope we do.”
    —Natalie Aragon [08:08]

Notable Quotes & Memorable Moments

• “They hold their texture...They don't turn into a big glob.”
  —Bennett Fraboni [02:12]

• “I do worry that we'll lose people to buying stuff from, you know, the big grocery stores, but I try not to lose any sleep over it.”
  —Bennett Fraboni [02:18]

• “Parents aren't very good at judging the quality of care, unfortunately, and so that does make it harder for the providers to compete on like actual quality.”
  —Jessica Brown [07:05]

• “My dad, Professor Pat Brancaccio, used to absolutely no wiggle room insist that there is a right pasta and a wrong pasta for certain sauces.”
  —David Brancaccio [03:08]

Timestamps for Key Segments

• Pasta Tariffs and Small Business Impact: 01:01 – 03:08
• Father’s Pasta Rules: 03:08
• Labor Market Update: 03:08 – 04:02
• Universal Daycare in New Mexico: 05:08 – 08:36

Tone and Style

Brancaccio’s delivery blends wry humor and warmth (“my personal favorite, strozza pretti”), while the episode maintains an accessible yet informative style. Sources offer practical business and economic analyses but share relatable personal touches (e.g., pasta texture, family-run daycares).

Useful for listeners seeking:
A concise but thorough catch-up on economic news—especially U.S. trade policy (and its culinary consequences), labor market updates during a government data blackout, and public policy’s complex impact at the local daycare level.