Planet Money – "Days of Our Tariffs" (Nov 19, 2025)

Host: Kenny Malone & Team | Main Guests: James Sneed (producer), Lenny Feldman (Customs & Trade Lawyer), Prof. Alberto Cavallo (Harvard Business School)
Theme: The everyday impact of tariffs on Americans, framed as an economic soap opera, with a mix of humor and real-life drama.

Episode Overview

This episode of Planet Money explores the economic "soap opera" of tariffs—the ongoing drama around imposing, removing, and debating tariffs, particularly those initiated under President Trump's administration. With real stories (including the ordeal of a Planet Money producer just trying to buy a collectible toy for his child), the episode examines how tariffs affect regular consumers, importers, and even the prices of domestic goods. The hosts also speak with experts to clarify who pays, how much, and why—even when you think it shouldn't affect you.

Key Discussion Points & Insights

1. The Tariff "Soap Opera" (00:46–05:05)

• Set-up: Kenny Malone creates a fireside, tongue-in-cheek scene, introducing ongoing tariff drama as if it’s a high-stakes soap opera: new tariffs, reversals, drama with trade partners, and a Supreme Court showdown.
• Notable moments:
  • "Have you noticed some familiar made for TV tropes over the last seven months of tariff drama?" (01:10, Kenny Malone)
  • "Like the sands through the economy, so are the days of our tariffs." (04:11, Kenny Malone)
• Context: Tariffs once thought dead, are now back big time, causing plot twists and "trade war" escalations.

2. The Real-Life Tariff at the Door: James’ Story (06:39–19:28)

The Ordeal:

• James Sneed tries to buy a $60 DW collectible toy from a Canadian seller and is confronted by a UPS driver demanding a $60 check:
  • "I have this package for you. I need a check for $60." (07:27, James Sneed)
  • James is first suspicious and then frustrated: he never saw the fine print warning about tariffs on cross-border orders.
• Breakdown of Charges:
  • $22.88 for tariffs (due to a 35% rate with Canada)
  • $24 in UPS brokerage and partner fees
  • Potential $12 charge if he paid the driver at the door
• Result: To receive his $60 toy, James would owe almost $60 more.

Teachings:

• How tariffs hit regular people directly, unpredictably, and sometimes with confusing last-minute bills.
• If the seller/importer hasn't handled tariffs, the consumer is on the hook—and fees can snowball.

Advice from Lenny Feldman (Customs Lawyer) (12:48–18:19)

• Increased confusion since removal of the “de minimis” exemption (which had shielded < $800 packages from duties).
• Couriers like UPS, FedEx often act as "importer of record," paying duties and seeking reimbursement from buyers—sometimes aggressively.
• "You can't just click and ship. It's click, do your homework, and ship." (18:05, Lenny Feldman)
• Very common for surprise fees; recommend checking all details before international purchases.
• Over time, sellers tend to bake tariffs into upfront prices, but surprises are still common now.

Resolution:

• James’ dilemma: Should he pay and accept a $111 total for the toy?
  • Ultimately pays out of "stubbornness" and attachment to the collectible.
  • "It comes with a little DW library card, and my kid loves her library card... it all goes together." (19:20, James Sneed)

3. Are Tariffs Making Everyday Goods More Expensive? (21:39–29:49)

With Prof. Alberto Cavallo (Harvard Business School)

• Data: Tracks 350,000+ products via big retailers/supermarkets to measure price changes specifically due to tariffs.
  • "There's clear evidence when you look at the microdata ... tariffs have affected the prices of many goods." (23:38, Prof. Cavallo)
  • Imported goods: 6% price increase above normal inflation due to tariffs.
• Example: Coffee (imported mostly from Brazil) saw a whopping 12% increase.
  • "We're noticing an increase since the tariff started of about 12%. And it makes sense because the US imports most of the coffee." (24:40, Prof. Cavallo)
• Tariffs impact cheap goods more: Lower-end imports (e.g., basic coffee) see bigger price jumps; premium brands often absorb more costs initially due to larger margins.
  • "Cheaper varieties have had twice as much inflation... the producers have lower margins and less buffer to absorb shocks." (26:04, Prof. Cavallo)
• Effect on US-made goods: Even domestic products got pricier (+3.5%), since:
  • Often rely on imported inputs (materials, parts)
  • Domestic-makers hike prices when foreign competitors’ costs rise (classic competitive behavior)
  • "Tariffs are a tax on imported goods. So why are domestic goods also increasing? ... It's normal to see that happen." (27:24, Prof. Cavallo)
• Big Picture: Tariffs alone have raised the overall U.S. inflation rate by 0.7 percentage points.
  • "The annual inflation rate would be... about 2.2% instead of being 2.9%." (29:29, Prof. Cavallo)

4. Emotional (and Financial) Closure: James Gets the Toy (30:25–32:13)

• After weeks of anxiety, James finally receives his collectible.
  • "On my front steps was a box …" (30:25, James Sneed)
  • "It’s got the sunglasses and the library card." (31:32, James Sneed)
• Total cost: $111, "plus a whole lot of heartache." (31:44, James Sneed)
• Bittersweet, but ultimately happy dad and “teachable moment.”

Memorable Quotes & Moments

• Kenny Malone (01:10): "Have you noticed some familiar made for TV tropes over the last seven months of tariff drama?"
• Lenny Feldman (18:05): "You can't just click and ship. It's click, do your homework, and ship."
• James Sneed (19:19): "It comes with a little DW library card, and my kid loves her library card... it all goes together."
• Prof. Cavallo (23:38): "There's clear evidence when you look at the microdata individual products that the tariffs have affected the prices of many goods."
• Prof. Cavallo (24:40): "We're noticing an increase since the tariff started of about 12%. And it makes sense because the US imports most of the coffee.”
• Kenny Malone (29:49): "So to answer the big question, yes, we are paying for the tariffs."
• James Sneed (31:44): "But despite it all, how are you feeling? ... I'm happy that I have this in my hands."
• James Sneed (32:06): "[Looking at the box] Ages 13 and up—so it wasn't for right now anyways."

Timestamps for Key Segments

• 00:46–05:05 – Tariff soap opera history and Supreme Court challenge
• 06:39–19:28 – James’ UPS/tariff ordeal, breakdown of surprise tariff fees
• 12:48–18:19 – Interview with Lenny Feldman, details on shipment rules and tips
• 21:39–29:49 – Prof. Alberto Cavallo: How tariffs impact prices and inflation
• 30:25–32:13 – Emotional payoff: James finally gets the toy

Takeaways & Practical Advice

• Consumers can get surprised by tariffs (and fees) on international online purchases—read the fine print, be proactive, check with carriers and sellers.
• Tariffs are raising the prices of both imported and many domestic goods, contributing significantly to U.S. inflation.
• Price impacts are not equal: cheaper versions of products see steeper tariff-induced price hikes than premium/luxury equivalents.
• Don’t assume that “U.S.-made” means “tariff-free”—inputs matter, and companies may opportunistically raise prices.

Overall Tone & Style

• Playful and dramatic, mixing humor (comparing tariffs to soap operas) with clear, data-driven reporting.
• Conversational, relatable, and informative—mimicking the surprise and frustration real consumers feel.
• Encourages listeners to be vigilant and curious about the unseen economics lurking in everyday purchases.