Marketplace Morning Report — Episode Summary

Episode: Using tariffs to help farmers ... harmed by tariffs
Date: October 8, 2025
Host: Sabri Benishour (in for David Brancaccio)
Main Theme: Examining the economic and business impacts of U.S. tariffs—especially on farmers and small businesses—and the government’s approach to mitigating those impacts through aid, with additional updates on global markets.

Episode Overview

In this brisk, information-packed episode, Sabri Benishour covers how tariffs imposed during trade disputes—especially those with China—have hurt U.S. farmers and other businesses, and how government interventions attempt to soften the blow. The episode juxtaposes the irony of using tariff revenue to compensate those harmed by tariffs, discusses the long-term consequences for American agricultural exports, and explores the real-life effects of shifting tariffs on a small business. The episode also provides a global markets update, spotlighting the historic rise in gold prices in response to ongoing trade uncertainty and government shutdowns.

Key Discussion Points and Insights

1. The Tariff-Aid Paradox

[01:02–03:20]

• The U.S. government’s response to the damaging effects of Chinese retaliatory tariffs on American agriculture is to redistribute tariff revenue back to affected farmers.
• Historical context: Savannah Peters explains the current plan draws directly from the first Trump administration’s playbook, when over $20 billion in aid was paid out, mostly to commodity growers like soybean farmers.
  • Joe Glauber: “Some analyses found that amount more than covered their trade war losses.” ([01:45])

Long-term vs. Short-term Relief

• Aid payments provided immediate relief but failed to restore long-term trade relationships, particularly with China, as other countries filled the U.S. void.
  • Joe Glauber: “That short term relief didn’t make up for the trade relations that were lost, maybe permanently, while US Ag exporters were sidelined and other countries stepped in.” ([02:03])
  • Savannah Peters: “Brazil has increased production a lot since the 2018–2019 trade war. They are, at least for the time being, the major supplier of soybeans to China, the world’s largest buyer.” ([02:25–02:36])
• Farmer Sentiment: A recent Purdue University survey (September) found 83% of U.S. farmers expect more aid if trade tensions persist, but their confidence in the future is slipping.
  • Savannah Peters: “What about the long run market share? Are we going to be able to go back to where we were…after this is all said and done? You know, trade payments are great, but…” ([03:02])
  • Joe Glauber, paraphrasing Michael Langemeyer: "U.S. farmers would rather have a stable market for their crops." ([03:12])

Memorable Quote

• Joe Glauber: "The first Trump administration's farm relief package paid out more than $20 billion, mostly to soybean and other commodity crop farmers. Some analyses found that amount more than covered their trade war losses." ([01:45])

2. Tariff Revenue VS Compensation

[03:20]

• The compensation to U.S. farmers nearly erased all the revenues the government received from tariffs on China—showing the circular, arguably inefficient nature of this economic strategy.
  • Sabri Benishour: “During the first Trump administration, the amount of aid paid to farmers to compensate them for their losses due to tariffs nearly wiped out all the revenue brought in by the China tariffs themselves.” ([03:20])

3. Gold’s Rally Amid Trade and Data Turmoil

[03:20–04:13]

• Markets Update: The price of gold has soared, surpassing $4,000 an ounce—the highest on record, with a 1.4% increase noted that morning.
  • Nick Marsh (BBC): “Even allowing for inflation, this is the most valuable that gold has ever been. A delay in the release of key economic data in the United States due to the current government shutdown has likely contributed to this latest surge.” ([03:45])
  • Market Trends: Interest rate cuts and instability from sweeping tariffs are making gold more attractive to investors.

4. Tariff Impacts on Small Business: Eldon Street Tea Shop

[05:00–07:43]

• Business Spotlight: Rachel Rosner, owner of Eldon Street Tea Shop (Reston, VA), returns to discuss how shifting and rising tariffs are squeezing her operations.
• Recent Changes:
  • Tariffs on Indian tea imports have now doubled (50%); China tariffs remain high.
  • Rachel Rosner: “Yes, except India went up to 50%. So it’s even worse." ([05:22])
  • She is “halting all purchases from India currently for tea... until the Supreme Court hearing on tariffs on November 5th.” ([05:29])
• Strategy Shift: Rosner is shopping for alternatives—sourcing ingredients domestically when possible and weighing whether it’s even economical to continue importing.
  • Rachel Rosner: "It’s become kind of a cat and mouse game of can we buy things stateside like our inclusions... or is it cheaper for us to pay the tariff and bring it over?" ([05:29])
• No Domestic Alternative: Virtually no U.S. tea production exists to fill the gap at scale. Domestic intermediaries (middlemen) have raised U.S. tea prices as well.
  • Rachel Rosner: "Any tea that’s coming in through a middleman that sells it in the United States, it has gotten even more expensive." ([06:17])
• Prices and Future Outlook:
  • Eldon Street Tea has now had to raise tea prices (100% increase anticipated by end of October), especially ahead of the holiday season.
  • Rachel Rosner: “We have raised prices on some of our teas. We will be 100% increased on our teas by the end of October...” ([06:44])
  • She anticipates consolidating operations and potentially limiting offerings until tariffs are lifted.
  • Rachel Rosner: "Our customers know they are going to get delicious, good quality tea, but it’s going to be a little bit more expensive." ([07:10])

Memorable Moment

• The business’s survival now hinges on the Supreme Court's decision regarding tariffs in November, underscoring the uncertainty rippling through small businesses nationwide.

Notable Quotes & Timestamps

• Joe Glauber (on farm aid): “Some analyses found that amount more than covered their trade war losses.” ([01:45])
• Joe Glauber (on permanent impact): “That short term relief didn’t make up for the trade relations that were lost, maybe permanently...” ([02:03])
• Savannah Peters: “Brazil has increased production a lot since the 2018–2019 trade war. They are...the major supplier of soybeans to China.” ([02:25])
• Rachel Rosner: “India went up to 50%. So it’s even worse...We are halting all purchases from India currently.” ([05:22–05:29])
• Rachel Rosner: “We have raised prices on some of our teas. We will be 100% increased...by the end of October.” ([06:44])

Timestamps for Key Segments

• [01:02] – Introduction to Trump tariffs, impact on farmers, and delayed aid due to government shutdown.
• [01:45] – Historical context and analysis of farm relief during previous trade war.
• [02:25] – How Brazil displaced U.S. soybeans in China.
• [02:46] – Farmer expectations for future aid.
• [03:20] – Analysis on how farm aid nearly canceled out tariff revenue.
• [03:45] – Gold’s record highs and what’s driving the rally.
• [05:00] – Interview begins with Rachel Rosner, Eldon Street Tea Shop.
• [05:22] – Evolving tariffs on tea, strategic challenges for the business.
• [06:44] – Price increase announcement and business challenges for the holiday season.
• [07:10] – Looking ahead: waiting for the Supreme Court decision, future plans.

Tone and Language

The episode maintains Marketplace’s characteristic clarity and practicality, blending succinct analysis with on-the-ground reporting. The tone is thoughtful, occasionally wry, and empathetic to the real-world tension felt by those navigating policy changes.

Conclusion

This episode paints a vivid picture of how U.S. trade policy creates ripple effects across sectors—from large-scale agriculture to small businesses like a local tea shop—highlighting the complexities, unintended costs, and personal anxieties that can’t be easily solved by government aid alone. The fate of both American farmers and small business owners now hinges on political, judicial, and global economic developments beyond their control.