Who will tariffs hurt the most?

Summary

Marketplace Podcast Summary: "Who Will Tariffs Hurt the Most?"

Release Date: April 4, 2025
Host: Kai Ryssdal
Guests:

• Katherine Rampell - The Washington Post
• Sidi Peretti - Politico
• Stephanie Hughes - Marketplace
• Guy Berger - Burning Glass Institute
• Jonathan Pingle - UBS
• Corey Kantanga - LinkedIn Economist
• Tim Richards - Agribusiness, Arizona State University
• Haley Hines - University of New Mexico
• Jessica Brown - University of South Carolina
• Mitch Borden - Marfa Public Radio
• Sondra Carpenter - Christina Kent Early Childhood Center, New Mexico

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1. The Surge of Tariffs and Market Reaction (02:00 - 09:25)

Overview: The episode delves into the recent imposition of tariffs by the Trump administration and their immediate impact on the stock market and broader economy. Host Kai Ryssdal engages with Katherine Rampell from The Washington Post and Sidi Peretti from Politico to unpack the ramifications.

• Market Impact:
  Katherine Rampell (02:20): "In the 75 years we've had the S&P 500 trading in this fashion five days a week, there have been only four times the stock market has dropped this much in two days... This is a deliberate decision to come up with tariffs that were obviously calculated in a somewhat bizarre way that threw everybody off course."

• Trader Confidence:
  Sidi Peretti (02:05): "It says that Marcus did not adequately prepare for the fact that Trump is the tariff man... the tariffs were even worse than he had televised on the campaign trail."

• Economic Uncertainty:
  Katherine Rampell (04:21): Discussed the uncertainty surrounding when tariff-induced price increases will affect consumers, highlighting perishables like fruits and vegetables as the first to feel the impact.

• Jobs Report vs. Tariff Turmoil:
  Katherine Rampell (06:16): "It's really quite remarkable to see a strong jobs report in a week like this... But this is the marker now and we will see. It probably won't happen immediately."

• Federal Reserve's Dilemma:
  Sidi Peretti (08:01): "Stagflation... the Fed is potentially confronting... no matter what they do, they are potentially failing one half of their two biggest duties."

2. Tariffs’ Impact on Employment and Consumer Prices (10:31 - 23:38)

Overview: Stephanie Hughes and Kimberly Adams explore how tariffs are projected to affect employment across various sectors and the subsequent rise in consumer prices, particularly for low-income households.

• Employment Consequences:
  Guy Berger (10:31): Tariffs will lead to higher prices for imported goods, reducing demand and subsequently decreasing the need for workers in supply chains and retail.
  Jonathan Pingle (10:31): "Tariffs are going to hurt economic growth, hurt our national wealth, and ultimately hurt demand for workers."

• Sector-Specific Impacts:
  Corey Kantanga (10:31): Services like healthcare will remain resilient due to demographic needs, whereas manufacturing could see job losses.
  Tim Richards (22:47): "The lowest income households spend more money on necessities... They spend 30% of their income on food."

• Consumer Price Increases:
  Stephanie Hughes (21:10): "Fresh produce prices will go up 4%, clothing prices up 17%."
  Sidi Peretti (21:56): "The current reciprocal tariff structure especially leads to a price hike for products targeting the value market."

• Impact on Low-Income Households:
  Sheng Liu (21:49): Low-income buyers heavily rely on affordable apparel, making them more susceptible to price hikes due to tariffs.
  Tim Richards (22:59): "Those higher income shoppers can also trade down from, say, the organic vegetables to the cheaper ones."

3. Water Crisis in West Odessa, Texas (12:36 - 16:54)

Overview: Shifting focus from tariffs, the podcast highlights the water scarcity issues in West Odessa, Texas, exacerbated by rapid population growth and inadequate infrastructure.

• Community Struggles:
  Mitch Borden (13:17): "Residents store water in these large containers because otherwise they don't have a reliable source."
  Katerina Tavares (14:22): "It takes me about two to three hours per week to haul water."

• Infrastructure Challenges:
  Darrell Pondo (15:02): "99% of the people that are asking for water are outside the district... there is no infrastructure out there whatsoever."
  Sondra Carpenter (25:26): "Our margins are fairly narrow... running in the red."

• State Intervention:
  Haley Hines (26:27): "A New Mexican family of four making up to $124,000 a year can now send their kids to daycare for free."
  Jessica Brown (27:18): Emphasized the dual benefits of childcare on labor force participation and child development, urging other states to consider similar models.

4. Success of New Mexico’s Childcare Subsidies (24:18 - 28:29)

Overview: The podcast showcases New Mexico's innovative approach to subsidizing childcare, transforming it from a struggling market to a more sustainable and quality-focused system.

• Program Implementation:
  Sondra Carpenter (25:26): "New Mexico pays the entire tuition bill for 60% of families at her center."
  Haley Hines (26:27): "The goal is also to change the business calculus for child care providers and help them get off that tightrope."

• Long-Term Benefits:
  Jessica Brown (27:39): "Child care serves a dual purpose in facilitating labor force participation of parents, but also being really important for child development."

• Provider Advantages:
  Sondra Carpenter (28:41): "It can take the leap. In Albuquerque, I'm Savannah Peters for Marketplace."

5. Tariffs' Specific Impact on the Gaming Industry (29:03 - 30:15)

Overview: Concluding the episode, the discussion turns to niche industries like tabletop and digital gaming, which face significant challenges due to tariffs on imported components.

• Tabletop Gaming:
  Stephanie Hughes (29:03): "The tabletop gaming industry is in full panic... specialty dice and wooden and plastic components almost all come from China and could be subject to a 54% tariff."

• Digital Gaming:
  Sidi Peretti (29:03): "Nintendo is delaying pre-orders for the highly anticipated Switch 2 to assess the potential impact of tariffs and evolving market conditions."

6. Concluding Insights and Future Outlook (30:15 - End)

Overview: The episode wraps up by highlighting the pervasive effects of tariffs across various sectors and emphasizes the importance of understanding these economic shifts.

• Economic Intelligence:
  Yaneli Espinal (30:17): "Financially Inclined from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of."

• Final Thoughts:
  Kai Ryssdal (30:39): Encourages listeners to stay informed and adapt to the evolving economic landscape shaped by tariff policies.

---

Key Takeaways:

1. Market Volatility: The sudden imposition of tariffs has led to significant stock market drops, reminiscent of major historical crashes, indicating deep-seated economic uncertainty.
2. Employment Shifts: While certain sectors like healthcare remain stable, manufacturing and retail face potential job losses due to reduced demand for imported goods.
3. Consumer Burden: Low-income households are disproportionately affected by price hikes in essential goods like food and apparel, exacerbating economic inequalities.
4. Infrastructure Deficits: Regions like West Odessa, Texas, highlight critical infrastructure challenges that require immediate attention and innovative solutions.
5. Policy Success Stories: New Mexico's childcare subsidies illustrate how targeted government interventions can stabilize and improve essential services.
6. Industry-Specific Impacts: Niche markets, including gaming, are grappling with increased costs and supply chain disruptions, affecting both producers and consumers.

This episode of "Marketplace" provides a comprehensive analysis of the multifaceted impacts of tariffs, offering listeners valuable insights into how these economic policies ripple through various aspects of daily life and different industry sectors.

Transcript

[Kimberly Adams]

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[Yaneli Espinal]

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[Kai Ryssdal]

Another rotten day in the markets, and we're still talking tariffs. From American Public Media, this is Marketplace in Washington, D.C. i'm Kimberly Adams in for Kai Ryssdal. It's Friday, April 4th. Thank you for joining us. Well, that was a week. And while the headline econ number of the day is the 228,000 jobs added to the economy in March, that monthly jobs report comes with quite the shadow cast over it because of the sheer wave of tariff news we got this week. So much to discuss, so little time. We have Katherine Rampel at the Washington Post and Sidi Peretti at Politico. Hey, you two. How's your week been?

[Katherine Rampell]

Hi. Hi, Kimberly.

[Sidi Peretti]

I survived it.

[Kai Ryssdal]

So I'd love to hear from the both of you because with the disclaimer that the stock market is not the economy and all, you cannot ignore the market reaction to these tariffs. We're seeing drops like we haven't seen since the start of the pandemic. So what does that say to you, Katherine?

[Sidi Peretti]

It says that Marcus did not adequately prepare for the fact that Trump is the tariff man. He told us he was going to do something along these lines and for whatever reason, those, I don't know, red flags were ignored. And now, now we're dealing with the consequences. Although to be fair, I think the tariffs were even worse than than even he had televised on the campaign trail. Right? He said 10% tariffs globally. Now he's saying 10% minimum tariffs globally. With them being a lot higher on some of our biggest trading partners. So. So, yeah, markets are digesting the news and getting very ill.

[Kai Ryssdal]

But I mean, sadeep, you're on the same White House press distribution list that I am, and they're saying nothing but that it's been wins.

[Katherine Rampell]

Yeah, that does not really work. There's obviously a messaging game here to try to have everybody avert their eyes. We are living through a. A truly historic moment. In the 75 years we've had the S&P 500 trading in this fashion five days a week, there have been only four times the stock market has dropped this much in two days. One of them was these four. The others were the 1987 stock market crash and the global financial crisis in 2008 and the COVID crash in 2020. This is a remarkable thing to happen in what is essentially a self owned to. To. To have a moment where you're delib and crashing the economy. There was no outside force that was making this happen. This was a deliberate decision to come up with tariffs that were obviously calculated in a somewhat bizarre way that threw everybody off course. And when you do that, you're deliberately setting a marker for what comes next and people are naturally reacting to it and reacting to the uncertainty that's coming from economic policy right now.

[Kai Ryssdal]

Well, what can we sort of pin down in terms of these tariffs, Catherine, in terms of when these price increases related to them will actually start showing.

[Sidi Peretti]

Up for regular folks, assuming that tariffs are actually implemented. And in the past, Trump has found some sort of off ramp to at least delay or suspend tariffs. Some of the tariffs, assuming they are implemented, which it looks like they will be within the next week. I think the first things we would probably see, you know, in terms of price increases flowing through to consumers would be perishables. So basically, fruits and vegetables, we saw a lot of front loading of durable goods. What? You know, things like cars, appliances, furniture, things that companies could stock up on in anticipation of the potential tariffs. So we'll have a little while before companies work through that inventory and we'll probably see some increase because they. They're thinking ahead to like the cost of replacing those goods. But for things like, you know, fruit, vegetables, we get a lot of fruit from Latin American countries, berries, things like that. For now, it looks like maybe Mexico has been spared again, those tariffs may be coming, but we get a lot of avocados, tomatoes, other produce from Mexico. If those tariffs ultimately materialize, one should expect that given for those products. First of all, they're very low Margin products, you know, the kinds of fruits and vegetables you buy at the grocery store. So it'll be harder for, for the suppliers to eat those tariffs, but also because they, they couldn't prepare in advance because the fruit would rot. So I think that would be where I would look first I want to.

[Kai Ryssdal]

Turn to the jobs numbers which would normally be at the top of the show. Sudeep, what did you take from this report?

[Katherine Rampell]

It was, it's really quite remarkable to me to see a strong jobs report in a, in a week like this because it shows a clear line of demarcation. There has been a lot of telegraphing that liberation day is coming, tariffs are on the way and a lot of businesses and consumers like the entire economy kind of shrugged this off and said like a wait and see what actually happens. The fact that employers were still hiring the last couple of months despite all of those threats, the fact that actual like core consumer spending has continued to stay, stay strong. That's a really good sign about the economy's ability to look through what could have been noise. And if it were just noise, we would have probably continued on just fine. But this is the marker now and we will see. It probably won't happen immediately. It takes time for businesses to adjust, but they'll start feeling the pain in their supply chains within days and that will lead to the slow bleed of cuts in certain sectors and the inflationary dynamic. We've lived through this with egg prices, with bacon, with all sorts of things over the last few years. This will, will stick in people's minds. If you're suddenly paying more for your groceries, even before you think about the cars and the TVs and everything else you're buying from overseas.

[Kai Ryssdal]

So Fed chair Jerome Powell spoke today at a conference for business journalists just across over from D.C. in Arlington, Virginia. And among the things he said was we face a highly uncertain with elevated risks of both higher unemployment and higher inflation, AKA stagflation. This is the two parts of the Fed's dual mandate. But they're kind of not working so nicely together. It puts the Fed in a bind. No Catherine.

[Sidi Peretti]

Exactly. Stagflation. Besides, you know, sucking on its own because nobody wants high inflation, nobody wants a recession or slow growth or increase it big increases in unemployment, those things are bad on their own. The even worse feature of stagflation, which is what the Fed is potentially confronting, is that they don't really have a tool that attacks both of those problems and achieves both halves of their dual mandate at once. If they're dealing with higher inflation, the remedy for that is is generally raising interest rates. If they're dealing with higher unemployment and a recession, the remedy for that is the opposite. It's cutting interest rates. So they're in this bind where no matter what they do, they are potentially failing one half of their two biggest duties. And there isn't really a lot of tool there aren't a lot of tools available other than the obvious fiscal policies, trade policies, undoing all of the stuff that Trump has done. But that doesn't seem likely in the immediate future anyway.

[Kai Ryssdal]

What we need Congress to do something anyway. Catherine Rampel is at the Washington Post. Sadeep Reddy at Politico, thank you both so much.

[Katherine Rampell]

Thanks, Kimberly.

[Kai Ryssdal]

Wall street today. We'll have the details when we do the number. So like we were just saying, 228,000 jobs added in March, generally more than economists expected. Labor force participation rate up a bit. And the unemployment rate didn't actually move that much, ticked up to 4.2%, all signs of a fairly resilient labor market. But like we said, that data was collected in mid March and now it's April, with new, broad tariffs expected to take effect over the next week. Marketplace's Stephanie Hughes looked at how our changing trade policy could affect employment moving forward.

[Kimberly Adams]

That saying past performance is no guarantee of future results. It could apply to this jobs report. Things were good in mid March, but what did it look like in mid September? Economist Guy Berger is with the Burning Glass Institute. Tariffs on imports will mean higher prices for, let's say, imported hoodies and headphones and whiskey. And if demand for all that falls, less stuff is going to be going through that chain to the end consumer, which means we're going to need fewer people to transport, store and sell that stuff. Lots of it's going to go into retail's hands. You probably need less salespeople. Manufacturing jobs here could be hit, too, particularly in the short term, UBS economist Jonathan Pingle says. Take automakers, who will be paying more for imported car parts. If the price goes up a lot because the production costs have gone up a lot, the demand for those cars is probably going to fall. And that probably means less workers to produce those cars. Pengel says if tariffs stay in place, manufacturing could move back to the U.S. but that could take in some cases a year in other years, plural. Also, not every manufacturing job abroad equals a new job for a person. Here it could equal a job for a robot. You could imagine 10 people overseas becomes three US workers plus the other seven people's jobs being done by technology paired with the US worker jobs in some industries will be less affected. LinkedIn economist Corey Kantanga says think services that are created and used here. One that's especially needed by an aging population is health care. We're going to need workers to take care of our elderly, to take care of us. But overall, UBS's Jonathan Pingle says these tariffs are going to hurt economic growth, hurt our national wealth, and ultimately hurt demand for workers. I'm Stephanie Hughes for Marketplace.

[Kai Ryssdal]

Texas is one of the fastest growing states in the country, but the population boom there also means an increase in the demand for for water. Take West Odessa, where many residents don't have running water. And this is in a region where the multi billion dollar oil industry is thriving. But figuring out how to pay for new infrastructure to get water lines where they need to be is a big problem. Marfa Public Radio's Mitch Borden has the.

[Mitch Borden]

Story as Katerina Tavares drives me around a West Odessa neighborhood. There are bulky water tanks alongside most of the homes and RVs.

[Kimberly Adams]

There's a black tank right here. They've got a green tank back there. RV plays with three tanks.

[Mitch Borden]

Residents store water in these large containers because otherwise they don't have a reliable source. West Odessa is an unincorporated community that local leaders believe has around 50,000 residents. And in recent years, the West Texas community has been growing fast. Many people came here for cheap land and few regulations. You might see a small ranch in the middle of a residential neighborhood, work yards filled with oil drilling equipment or mobile homes packed tightly on a single lot.

[Kimberly Adams]

This is West Odessa. I mean, look, you'll have a beautiful home and then you have random mobile homes falling apart.

[Mitch Borden]

And as more people have moved here, the community has expanded beyond existing water lines. Hence the tanks, which can take a ton of time and money to fill with thousands of gallons of water. Tavares pulls up to her neighbor's house and tells me how they do it.

[Kimberly Adams]

They'll have their flatbed, they'll have different kinds of tanks. They go out wherever it is that they can't either find it less expensive. And she told me it takes her about two to three hours per week to haul water.

[Mitch Borden]

Tavares is part of a group called the West Odessa Water warriors, which is trying to get more residents connected to the water utility. Patty Kapoff, who founded the group last year, says it's not been easy.

[Kimberly Adams]

You'd think prolific oil fields, right?

[Kai Ryssdal]

We would have money, but we don't.

[Kimberly Adams]

And you know, this population just got out of control.

[Mitch Borden]

A big part of the problem is some parts of West Odessa have access to running water, while large swaths just don't. The local water system is run by the Ector County Utility District, which doesn't have the millions of dollars needed to run water lines to the far corners of West Odessa.

[Kai Ryssdal]

The main issue is 99% of the.

[Kimberly Adams]

People that are asking for water are outside the district.

[Kai Ryssdal]

So there is no infrastructure out there whatsoever.

[Mitch Borden]

Darrell Pondo was recently elected to the utility district's board of directors. Lots more people would have to pay into the system for this to work. Which has sparked some difficult conversations.

[Kimberly Adams]

One citizen tell me, Darrell, you mean.

[Sidi Peretti]

To tell me that I probably won't be alive by the time you get me water?

[Kai Ryssdal]

I said I might not even be alive.

[Sidi Peretti]

I said it might not be my kids. It might be my grandkids that are finishing this up.

[Mitch Borden]

He says there are some projects in the works that will expand access to clean and running water, but nothing that will fix the problems at the scale that is necessary. In fact, across Texas, communities are worried about running out of water as more people move in. Lawmakers are talking about investing more in water projects. But people out here in West Odessa, like Catarina Tavares, feel abandoned.

[Kimberly Adams]

It's not an issue for them. It's not a priority for them.

[Mitch Borden]

And it's not always about expanding lines to new developments. In some cases, old water wells have dried up, which is what happened to Tavares.

[Kimberly Adams]

This is a basic need. Running water is a basic need that we all have. I mean, this should have. This should not be a problem right now. It should have been fixed years ago, years ago.

[Mitch Borden]

For now, she and her neighbors will keep filling their water containers wherever they can to keep their faucets running. In West Odessa, Texas, I'm Mitch Borden for Marketplace.

[Kai Ryssdal]

Coming up, you get to something that.

[Kimberly Adams]

Starts to almost look and feel like a universal system.

[Kai Ryssdal]

The state that's subsidizing childcare. But first, grit your teeth and let's do the numbers. Well, the Dow Jones industrial average fell 2,231 points, five and a half percent to close at 38,314. The NASDAQ dropped 962 points, five and eight, 10% to finish at 15,587. And the S&P 500 lost 322 points to end at 50 74. For the very rough week it was, The Dow lost 7 and 9, 10%. The Nasdaq lost 10%. And entering bear market territory, meaning a drop of 20% or more from its peak and the s and P lost 9 and a 10th percent. Bank stocks took a hit today along with consumers and investors. Citigroup fell 7,8 10%. Bank of America was down 7.6%. Bonds rose. The yield on the 10 year T note fell to 4.00% and you're listening to Marketplace.

[Kimberly Adams]

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[Kai Ryssdal]

This is marketplace. I'm Kimberly Adams. Like we said earlier, this trade war is going to hit everybody's wallet. The Yale Budget Lab estimated fresh produce prices will go up 4%, clothing prices up 17%. That kind of inflation hits people with the lowest incomes hardest. The Yale Budget Lab figures Trump's tariffs will slash disposable income in the poorest households by at least $1700 a year, Marketplace's Kaylee Wells explains.

[Sidi Peretti]

Simply put, the lowest income households spend more money on necessities. Steve Blitz with Global Data TS Lombard says the category that'll hit them hardest is is apparel.

[Mitch Borden]

That's really where they're going to feel it the most because they buy clothes.

[Katherine Rampell]

Like everybody else, he says.

[Sidi Peretti]

Yes, you can hold on to clothes longer, mend tears, but everybody needs new underwear and shirts sometimes. Sheng Liu teaches fashion and apparel studies at the University of Delaware.

[Kai Ryssdal]

The current reciprocal tariff structure especially leads to a price hike for products targeting.

[Sidi Peretti]

The value market, meaning the cheapest clothes, which come from Bangladesh, Cambodia, Sri Lanka, countries that face some of the highest tariffs. Liu says that puts low income buyers in a tough position.

[Kai Ryssdal]

They already have more limited choices compared to more affluent consumers because if you're.

[Sidi Peretti]

Already buying your underwear from the most affordable brands, there's nothing cheaper to switch to. You just have to pay the higher price. That's a problem people with lower incomes face at the grocery store, too, says Tim Richards, who teaches agribusiness at Arizona State University.

[Katherine Rampell]

The top half of income earners, they.

[Kai Ryssdal]

Spend about 10% of their income on food. But if you look at the lowest 20% of income earners, they spend 30%.

[Kimberly Adams]

Of their income on food, Richard says.

[Sidi Peretti]

Those higher income shoppers can also trade down from, say, the organic vegetables to the cheaper ones.

[Kai Ryssdal]

It's one of the real harmful things about tariffs is that the people that are less able to substitute away end.

[Katherine Rampell]

Up paying the bigger hit.

[Sidi Peretti]

And Richard says that has health impacts because healthier foods tend to be more expensive. And if you can't afford the cheapest vegetables, then you don't buy any. I'm Kayleigh Wells for Marketplace.

[Kai Ryssdal]

Childcare in the United States is a classic example of a failing market. Daycare prices are already about as high as families can bear, and that constraint makes it hard for child care centers to offer enough slots to meet demand or the quality of care that we know is good for kids. The pandemic really highlighted this problem, and since then, a couple of state governments have been trying to bring things into balance by helping more households afford care, including one state that's offering to foot the daycare bill not just for low income families, but many in the middle class as well. Marketplace's Savannah Peters brings us this story from New Mexico.

[Yaneli Espinal]

At Christina Kent Early Childhood center in downtown Albuquerque, the kids guide the curriculum. And right now the 2 and 3 year olds in the bunny classroom are guiding it in a Jurassic park kind of direction. Do you know the names of any of these dinosaurs? The bunnies are digging into a basket of toy triceratops and brachiosauri with their teacher Danielle Reinertsen, who has a few weeks of dino activities planned.

[Kimberly Adams]

And if they want to move on.

[Kai Ryssdal]

To something else, yeah, we'll probably move.

[Kimberly Adams]

On to something else.

[Yaneli Espinal]

Something else like making family portraits or watching real caterpillars transform into painted lady butterflies. Reinertsen and two other teachers lead this class of 18 toddlers. That's a low grownup to kid ratio and one reason why this center earns a five star quality rating from the state of New Mexico. But also what makes running it so expensive. Our margins are fairly narrow, says director Sondra Carpenter.

[Kai Ryssdal]

Consistently, for a number of years in a row, the center was running in.

[Yaneli Espinal]

The red and walking this sort of tightrope where the center was barely charging enough to cover payroll and keep the lights on. But still, lots of families struggled to make tuition payments.

[Kai Ryssdal]

You always have a certain amount of.

[Yaneli Espinal]

Families that you do.

[Kai Ryssdal]

We send them to collections. Do we take it as a loss for the year?

[Yaneli Espinal]

But then in 2021, New Mexico made some big investments that changed that dynamic. It dramatically expanded eligibility for childcare assistance and boosted the reimbursement rate centers receive for accepting child care vouchers. Now, Carpenter says New Mexico pays the entire tuition bill for 60% of families at her center.

[Kai Ryssdal]

It's allowed child care programs to really focus where we want to focus, which is on the kids.

[Yaneli Espinal]

The money for this expansion comes from a couple of state investment funds, fed mostly by oil and gas revenue.

[Kimberly Adams]

You can make choices about what's important, and New Mexico has really decided to go big on early childhood.

[Yaneli Espinal]

Haley Hines studies childcare policy at the University of New Mexico. She says a New Mexican family of four making up to $124,000 a year can now send their kids to daycare for free. That's twice the state's median income.

[Kimberly Adams]

You get to something that starts to almost look and feel like a universal system.

[Yaneli Espinal]

The goal is also to change the business calculus for child care providers and help them get off that tightrope Sandra Carpenter was describing.

[Kimberly Adams]

Could we transform the system that way? Could we make it higher quality? Could we incentivize providers to open new rooms because they know they're going to have this reliable, higher revenue source?

[Yaneli Espinal]

New Mexico's play, Heinz says, is to inject lots of public money into this broken market to try and make it work better for everybody. Easy, right?

[Kimberly Adams]

Right.

[Sidi Peretti]

I was going to say if every.

[Kimberly Adams]

State could have oil money, maybe we.

[Kai Ryssdal]

Could solve the child care crisis.

[Yaneli Espinal]

Jessica Brown is an economist at the University of South Carolina studying child care markets. She says the investment funds that pay for New Mexico's program are unique, but other states should be taking notes. Child care serves as dual purpose in.

[Kimberly Adams]

Facilitating labor force participation of parents, but also being really important for the child development.

[Yaneli Espinal]

If New Mexico can get more kids into high quality care, Brown says, there's research showing those kids will make more money and need less government help down the road. For now, researchers at the University of New Mexico say the expanded subsidy is helping providers invest in higher teacher salaries, better facilities and, and in some cases, expanding. Get her to dance across the street from the original Christina Kent Early Childhood center is a building that will house five new infant, toddler and pre K classrooms. Director Sondra Carpenter knows the center can fill those classrooms now that more families can afford care. Has that set the stage and the.

[Kai Ryssdal]

Foundation for us to be able to say, yes, let's take on alone? It has. I don't think the school 10 years ago was in a financial position to make that kind of decision.

[Yaneli Espinal]

Now that its profit margins are just a little wider, it can take the leap. In Albuquerque, I'm Savannah Peters for Marketplace.

[Kai Ryssdal]

This final note on the way out today. As we've been saying, the effect of these tariffs will hit harder in some areas than in others. For example, in gaming, Polygon is reporting that the tabletop gaming industry is in full panic with the tariff news, since things like specialty dice and wooden and plastic components almost all come from China and could be subject to a 54% tariff. Digital gamers aren't much better off. CNBC has news that Nintendo is delaying pre orders for the highly anticipated Switch 2 to, quote, assess the potential impact of tariffs and evolving market conditions. Our theme music was composed by BJ Lederman Marketplace's executive producer is Nancy Fargoli. Donna Tam is the executive editor. Neil Scarborough is the vice president and general manager. And I'm Kimberly Adams. Have a great weekend. We will be back on Monday. This is apm.

[Kimberly Adams]

If there's one thing we know about.

[Kai Ryssdal]

Social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially Inclined from Marketplace is a podcast.

[Kimberly Adams]

You can trust to help you get serious about your money so you can build a life you've always dreamed of.

[Kai Ryssdal]

I'm the host, Jannelli Espinal, and each week I ask experts important money questions.

[Kimberly Adams]

Like how to negotiate job offers, how.

[Kai Ryssdal]

To choose a college that you can.

[Kimberly Adams]

Afford, and how to talk about money.

[Kai Ryssdal]

With friends and family. Listen to Financially Inclined wherever you get your podcasts.