Morning Brew Daily – Episode Summary

Episode Title: Tariffs Ineffective Against US Trade Deficit? & Family Feud Over Reese’s Recipe
Date: February 20, 2026
Hosts: Neal Freyman & Toby Howell

Overview

This episode of Morning Brew Daily dives into why tariffs haven't curbed the US trade deficit despite years of policy intervention, and explores the controversy over recipe changes to Reese’s Peanut Butter Cups as voiced by the inventor’s grandson. Along the way, hosts dissemble news about the Olympics, major moves in the resale and tech sectors, astounding lawyer fees, new AI workplace mandates, geopolitical tensions, and the latest in the search for proof of extraterrestrial life. The tone is witty, informative, and banter-filled.

Main Topics & Key Insights

1. US Trade Deficit and the (In)Effectiveness of Tariffs

Timestamps: 02:51 – 08:19

• US trade deficit update: The deficit climbed to $901.5 billion annually, barely changed from the previous year despite Trump's wide-reaching tariffs (falling only 0.2% from 2024).
• Tariff impact:
  • Many tariffs were reduced or spaced out via deals, neutralizing much of their "bite".
  • Despite tariffs, the deficit for physical products grew nearly 6% (inflation-adjusted).
  • Major imports like pharmaceuticals and electronics were never covered by tariffs.
• Downstream effects:
  • Midsize US businesses saw tariff bills triple last year.
  • JP Morgan & NY Fed studies show ~90% of tariffs’ cost is shouldered by US businesses, not foreign exporters.
• Re-routing supply chains:
  • "China’s imports were down 30% last year, but imports from places like Mexico and Vietnam more than made up the difference." (Neal, 04:14)
  • Some goods likely re-routed through third countries (Vietnam/Mexico) in “under the table deals.” (Toby, 05:31)
• Stockpiling: Inventories were front-loaded to avoid tariff price hikes and cushion consumer impacts.
• Who really pays?
  • “Yes, US Midsize businesses have jumped their costs because of the tariffs … 90% of the burden for Trump’s tariffs did fall on US companies and consumers.” (Neal, 06:43)
• Legal limbo: The Supreme Court is poised to decide whether Trump exceeded his authority declaring an “economic emergency,” possibly altering the future of tariff-based trade policy.

2. Reese’s Recipe Controversy

Timestamps: 08:28 – 11:57

• Family feud goes public: Brad Reese, grandson of the Reese’s Cup inventor, blasted Hershey’s for quiet recipe changes, saying new batches are “not edible.”
• Hershey response: Denies changes to the “OG” cup recipe, but admits altering ingredients for other Reese’s products to meet consumer preferences.
• Why did the taste change?
  • Nostalgia bias (“chocolate was always going to taste better when you were younger”) and actual cocoa price hikes prompt reformulation.
  • Quote: “Hershey’s, you know, stance was that the fact that you’re eating a different product constitutes a different innovation and a different formula.” (Toby, 09:30)
• Standards matter: “To qualify as milk chocolate, you need at least 10% chocolate liquor ... 12% milk solids, and 3.39% milk fat.” (Toby, 09:30)
• Ingredient changes real: Candy bars like Rolos, Mr. Goodbar, and Almond Joy no longer list “milk chocolate.”
• Viral reaction: Social media users shared their own complaints: “Reese’s Peanut butter cups tastes like AI right now.” (Anonymous, 11:32, relayed by Toby)
• Family backstory: The Reese family sold the company back to Hershey in 1963 after founder H.B. Reese, former Hershey employee, created the cup.

3. Stock of the Week: Etsy Sells Depop to eBay

Timestamps: 11:57 – 14:42

• Big deal: Etsy sells hip resale platform Depop to eBay for $1.2 billion; investors approve as both stocks rally.
• Rationale:
  • eBay buys access to Gen Z used-fashion shoppers (90% under 34).
  • Etsy offloads a “distracting” side venture, focuses on core business.
  • Depop US growth was 60% last year—still a hot asset.
  • Despite resale industry growth, deals like this and Poshmark’s reveal valuations have dropped sharply since the e-commerce pandemic boom: “They sold it at a $400 million loss and that seems to be par for the course for some of these second hand companies.” (Neal, 14:14)
• Broader trend: Resale and thrifting are mainstream, boosted by inflation, Gen Z tastes, and anti-fast-fashion sentiment.

4. Dog of the Week: Amazon’s Losing Streak Amid AI Spending

Timestamps: 17:09 – 20:55

• Stock stumble: Amazon suffered 9 consecutive down days, losing 18% of its value ($450B), before snapping slump.
• Why so bearish?
  • Massive planned AI infrastructure spend: $200B this year (vs. $150B expected).
  • Analysts spooked by record capital expenditure.
• Business fundamentals: Still strong, dethroning Walmart as world’s biggest company by revenue ($717B), but much of that growth comes from cloud computing (AWS), not retail.
• Historical context: Past #1 revenue companies (Exxon Mobil, GM) aren't at their peak now—“Heavy is the head that wears the crown.” (Toby, 19:33)
• Segment humor: Neal and Toby spar over their own Amazon shopping contributions (sponge for Toby, AWS for Neal).

Brief News Hits & Notable Moments

Olympics, Ski Mountaineering, and New Sports

Timestamps: 00:49 – 02:08

• Excitement about the US Women’s Hockey gold and the debut of “ski mo” (ski mountaineering): “What a bizarre and painful sport. … ski breakdancing? It’s coming in 2020, whatever the next Olympics are.” (Toby, 01:24)

Middle East Tensions Raise Oil and Pistachio Prices

Timestamps: 21:05 – 22:30

• Oil surges as President Trump contemplates military action on Iran.
• Fun fact: “California and Iran basically have a duopoly over pistachio production…so you can expect pistachio prices to also jump.” (Toby, 21:50)

Accenture’s AI Mandate for Promotions

Timestamps: 22:30 – 23:56

• Consulting giant Accenture requires senior employees to regularly use AI tools for promotion.
• Discussion about how serious or “vibe-based” the mandate actually is.
• “I don’t think there’s another CEO with more conviction that AI will revolutionize work than Julia Sweet." (Neal, 23:12)

Lawyer Hourly Rates Hit $6,000

Timestamps: 23:56 – 26:01

• Top lawyers now billing $3k–$6k+ per hour; cited: Eric Troutman’s jump to $6k/hour.
• Context: Supply and demand for specific expertise (“chuztpah” as Neal’s grandparents would say).
• “This has gone beyond the market rate pricing, but it is—it’s crazy how much it’s risen…” (Neal, 25:08)

Presidential UFO/Alien Declassification Orders

Timestamps: 26:01 – 27:32

• Trump promises release of government UFO files; Obama feeds the rumor mill but walks back “they’re real” comment.
• Playful speculation about “Disclosure Day” (June 12, 2026) and Spielberg’s new alien blockbuster.
• “This happens all the time. We really don’t find out much.” (Neal, 27:15)
• “Are there little green aliens? Do I think the United States has been in contact with them? No.” (Neal, 27:19)

Quotes & Highlights

• On trade deficit:
  “The only thing tariffs seem to have taken a bite out of is US Businesses.” (Toby, 02:51)
• On AI mandate:
  “She [Accenture CEO Julia Sweet] is more bullish on AI than Oscar Isaac in Ex Machina.” (Neal, 22:30)
• On nostalgia & chocolate:
  “Chocolate was always going to taste better when you were younger, just because you were younger.” (Toby, 09:30)
• On lawyer bills:
  “Lawyers have a lot of chutzpah.” (Neal, 25:08)

Tone and Style

Consistently witty, bantering, and sharp—Neal and Toby balance the rapid-fire delivery of complex news with humor and human insight. Listeners are treated not just to the facts, but also the hosts’ own perspectives, everyday analogies, and playful ribbing.

Suggested “Must-Listen” Segments

• Tariff impact and business fallout: 02:51 – 08:19
• Reese’s Recipe debate & nostalgia: 08:28 – 11:57
• Amazon’s paradoxical “hollow victory”: 17:09 – 20:55
• Eyebrow-raising lawyer rates discussion: 23:56 – 26:01

This episode is packed with astute business, economic, and cultural analysis, all delivered with the Brew’s trademark conversational style and sharp humor.