Planet Money: Tariffs, Grocery Prices, and Other Listener Questions – Detailed Summary

Released January 17, 2025 by NPR’s Planet Money

In this engaging episode of Planet Money, host Amanda Aronczyk and the Planet Money team delve into a series of listener questions that emerged in the wake of Donald Trump’s reelection. Covering a broad spectrum of economic concerns—from tariffs and grocery prices to the potential impact on public broadcasting—this episode provides insightful analysis and expert opinions to help listeners navigate the complexities of the current economic landscape.

1. Can President Trump Address Economic Inequality?

Timestamp: 01:20 – 02:10

The episode kicks off with a profound question from Aaron Fountain, an academic historian from Maryland, who queries the feasibility of President Trump continuing to address economic inequality. Fountain’s inquiry reflects widespread voter anxieties rooted in economic disparity.

Quote:

“Do people think that he can actually, you know, continue to address inequality and will it actually get better or will it get worse?”
— Aaron Fountain (01:30)

Host Amanda acknowledges the uncertainty surrounding this issue, emphasizing the long-term nature of assessing economic policies and the limited immediate influence a president may wield over deep-seated economic factors.

2. Can the President Influence Oil Prices and Inflation?

Timestamp: 04:15 – 10:03

Listener Michael Mesa poses a critical question about the president’s ability to impact energy prices and inflation through increased oil production—a campaign promise famously encapsulated in the phrase “Drill, baby, drill.”

Key Insights:

• Samantha Gross, an energy policy expert at the Brookings Institution, explains that the president has limited tools to significantly alter oil prices. While opening federal lands for drilling could marginally increase oil supply, it represents only about a quarter of U.S. oil production.

  Quote:

  “So it gets a lot of attention because it's a lever that the president has but it's not where most of our production comes from.”
  — Samantha Gross (05:57)

• The strategic use of the Strategic Petroleum Reserve (SPR) is discussed as a short-term measure to stabilize oil prices. However, the SPR’s capacity is insufficient for long-term price control, as it can only supply the global demand for about a week.

  Quote:

  “They are like sort of mined out caverns made of salt, so you can put the oil in there, you know, as liquid in these big old caverns.”
  — Samantha Gross (08:22)

• Jeff Guo highlights that despite these measures, global oil markets are influenced by broader factors beyond presidential control, such as OPEC’s production decisions.

  Quote:

  “They're holding back their oil production because they don't like the price right now.”
  — Jeff Guo (07:14)

Ultimately, the discussion concludes that while presidential actions can provide temporary relief, systemic changes in oil prices and inflation require more extensive and coordinated efforts.

3. Why Are Groceries Still So Expensive?

Timestamp: 10:29 – 15:18

Jen Penzis raises a pressing concern about the persistent high costs of groceries, noting a 25% increase between 2019 and 2023, outpacing overall inflation.

Key Insights:

• Greg Rosalski, the newsletter writer, clarifies the distinction between the price level and inflation. He uses an analogy of an inflatable pool to illustrate how the price level represents the overall cost of goods, while inflation denotes the rate at which these prices increase.

  Quote:

  “The height of the water is kind of like the price level. And now imagine there's a hose going into this pool… that's inflation.”
  — Greg Rosalski (11:23)

• The discussion highlights that while general inflation may slow, specific sectors like groceries continue to see significant price hikes due to factors such as supply chain disruptions and disease outbreaks affecting production, such as the bird flu impacting egg prices.

• Rosalski emphasizes that grocery prices are unlikely to decrease in the near future, referencing the rare instance in 2016 when grocery prices slightly fell—a trend not expected to continue.

  Quote:

  “These things tend to go up over time, not go down.”
  — Greg Rosalski (13:58)

• To cope with rising grocery costs, the recommendation is for individuals to seek wage increases, as rising incomes can help offset the higher expense of living.

  Quote:

  “She should hope to get a raise and, you know, like, hope her household income goes up.”
  — Greg Rosalski (14:30)

4. Will Trump's Administration Cut NPR Funding?

Timestamp: 15:18 – 22:48

Listener Jane Gray inquires about the likelihood of funding cuts to NPR under Trump’s administration, reflecting broader concerns about public broadcasting’s future.

Key Insights:

• Brooke Gladstone, co-host of the public radio show On the Media, provides historical context, detailing past administrations’ attempts to reduce funding for the Corporation for Public Broadcasting (CPB), which funds NPR and PBS.

  Quote:

  “Nixon tried to do it, but that was before I was covering it… George W. Bush also tried to do it.”
  — Brooke Gladstone (17:31)

• The CPB’s funding is protected through the Public Broadcasting Financing Act, which allocates budgets two years in advance to shield it from immediate political interference.

• Brooke explains that while the president can request rescissions—the withdrawal of unspent allocated funds—bipartisan support in Congress typically safeguards CPB’s budget, ensuring continuity in public broadcasting.

  Quote:

  “Rescission means that they can go in and cut things that were previously appropriated.”
  — Brooke Gladstone (20:36)

• The segment underscores that any significant cuts would disproportionately impact local public radio and TV stations, which serve as vital information sources in their communities.

  Quote:

  “It would hurt these local stations a lot more. Stations that act as a service and might be the only source of local news.”
  — Brooke Gladstone (21:31)

Overall, the analysis suggests that while attempts to cut NPR funding may surface, institutional protections and legislative support make such moves challenging and unlikely to fully dismantle public broadcasting.

5. Should You Buy a New iPhone Before Tariffs Kick In?

Timestamp: 23:51 – 29:40

Brian Bunton from South Carolina asks whether he should purchase a new iPhone now to avoid potential price increases due to upcoming tariffs under Trump’s administration.

Key Insights:

• Amit Kundwal, a Yale economics professor, discusses the possibility of exemptions for certain products, suggesting that not all goods, including iPhones, might be subject to new tariffs.

  Quote:

  “Maybe there just won't be tariffs on iPhones because companies can request exemptions.”
  — Amit Kundwal (25:00)

• Historical precedent is provided where previous tariffs proposed by Trump did not ultimately apply to iPhones, as Apple, led by CEO Tim Cook, successfully lobbied for exemptions to maintain competitiveness against Android devices.

  Quote:

  “iPhones were almost subject to tariffs… there was never a tariff on iPhones.”
  — Amanda Aronczyk summarizing (25:08)

• Comparisons are made to the broader supply chain adjustments, such as Apple’s shift of iPhone production to countries like Vietnam and India, as part of a “China plus one” strategy to diversify manufacturing bases and mitigate tariff impacts.

  Quote:

  “In the past five years… they've been increasingly shifting iPhone production to Vietnam and India.”
  — Jeff Guo (27:15)

• The conversation humorously reveals that Brian has already purchased a new iPhone despite the impending uncertainty, reflecting a common consumer response to ambiguity in economic policies.

  Quote:

  “Pretty much I wrote in the question, but I kind of came to the conclusion myself. Probably rather be safe than sorry.”
  — Jeff Guo (28:36)

The segment concludes with a lighthearted note on consumer decision-making amidst policy uncertainties, emphasizing the complex interplay between government actions and corporate strategies.

Conclusion

Timestamp: 29:50 – 30:25

Amanda Aronczyk wraps up the episode by encouraging listeners to continue submitting their questions, highlighting Planet Money’s commitment to addressing the economic issues that matter most to its audience.

Final Note:

“Feel free to always send us your questions. We love to hear from you.”
— Amanda Aronczyk (30:25)

This episode of Planet Money offers a comprehensive exploration of listener concerns related to economic policies under President Trump’s administration. Through expert analysis and thoughtful discussion, the show equips listeners with a deeper understanding of how presidential actions and global market dynamics influence everyday economic realities.