NPR Politics Podcast: "Trump's New Tariffs Set to Take Effect This Week, But Much is Uncertain"

Release Date: August 4, 2025
Hosts: Ashley Lopez & Danielle Kurtzleben
Guests: Scott Horsley (NPR Chief Economics Correspondent), Amy Klobuchar (Senator)

1. Introduction

In this episode of The NPR Politics Podcast, hosts Ashley Lopez and Danielle Kurtzleben delve into the latest developments surrounding President Trump's new tariff implementations. Joined by NPR's Chief Economics Correspondent Scott Horsley, the discussion navigates the complexities of these tariffs, their economic ramifications, and the ensuing political fallout.

2. Overview of Tariff Implementation

Danielle Kurtzleben provides a comprehensive update on the current status of Trump's tariffs:

• Country-by-Country Tariffs: Signed last Friday, set to take effect on August 7th, following previous delays. (01:28)
• Canadian Goods Tariff: A new 35% tariff on Canadian exports not covered by the USMCA became effective last Friday. USMCA currently encompasses approximately 40% of Canadian exports as of last year, leaving a significant portion still affected by tariffs. (02:10)

Scott Horsley adds context:

• The average tariff on imported goods has surged to around 18%, a sixfold increase since Trump took office in January. This escalation has led to higher costs for consumers and businesses alike. (03:04)

3. Economic Impacts

Scott Horsley discusses the immediate and projected economic effects of the tariffs:

• Initial Impact: Effects have been somewhat muted initially due to importers stockpiling goods and some tariffs being delayed or scaled back. (04:33)
• Economic Indicators: Recent GDP numbers indicate that the economy is growing at half the rate compared to the previous two years. Inflation is beginning to rise, influenced by the increased costs of imported goods. (04:50)
• Labor Market: A concerning jobs report revealed fewer jobs added in July than forecasted, with revisions negating previous gains in May and June. This points to a stagnating job market potentially linked to the tariffs. (05:05)

Scott Horsley emphasizes:

"We're not going back to four-decade high inflation like we had a few years ago. But we have seen inflation start to creep up again that is moving in the wrong direction." (04:55)

4. Political Reactions and Fallout

The conversation shifts to the political landscape, particularly within the Republican Party:

• Republican Pushback: While Amy Klobuchar highlights Democratic concerns, Danielle Kurtzleben notes only tepid opposition from Republicans. Some lawmakers from agricultural states express worries about retaliatory actions affecting exports. (06:14)

Amy Klobuchar states:

"Not just on the Joint Economic Committee, but throughout the Senate, people behind closed doors, they say they don't like these tariffs if they're Republicans, but yet they still vote to rubber stamp what he's doing time and time again." (07:30)

Danielle Kurtzleben interprets this as Republicans feeling constrained by Trump's influence:

"Maybe he's not popular with Democrats and independents. Republicans still like him and Trump still has the power to get you primaried in a red House district or in a red state, and they're still scared of him." (07:51)

5. Trump’s Move to Fire BLS Head

A significant development occurs when President Trump dismisses the head of the Bureau of Labor Statistics (BLS):

• BLS Role: The BLS is responsible for compiling essential economic data, including jobs numbers and the Consumer Price Index. (10:08)

Scott Horsley explains the implications:

"When the jobs numbers were disappointing, he fired the messenger. He called for the ouster of the Commissioner of the Bureau of Labor Statistics. And that's really something that drew criticism from across the board." (10:08)

The firing is perceived as an attempt to undermine the credibility of economic data:

"The BLS is an apolitical professional statistical arm... The President is really jeopardizing that objective view of reality." (11:15)

6. Implications on Data Trust and Democracy

The episode explores the broader consequences of undermining trusted institutions:

• Erosion of Trust: By casting doubt on the BLS's integrity, Trump risks diminishing public trust in crucial economic indicators. (12:20)

Danielle Kurtzleben draws parallels to Trump's historical disregard for inconvenient data:

"He has said that polls that don't benefit him aren't real... If people don't trust the data or even don't have it, that means it's harder and harder to even look around, to know what's happening and to agree on what reality is." (14:12)

Scott Horsley reiterates the importance of reliable data:

"Having objective, reliable data from the BLS really is a public good, and it's disheartening to see that attacked." (15:10)

Amy Klobuchar emphasizes the real-world impact:

"His action is on the backs of regular people... People’s grocery receipts don't lie. Their rent doesn't lie. Their childcare costs don't lie." (15:51)

7. Future Outlook and Consequences

The hosts and guests speculate on future developments and potential outcomes:

• BLS Leadership: Currently led by a deputy, Trump plans to nominate a new head subject to Senate confirmation. The selection process and subsequent scrutiny could influence the BLS's future credibility. (16:26)

Scott Horsley points to upcoming data revisions:

"We’re going to get our first look at that annual revision in early September... We'll see how the initial reports of job growth under the Trump administration compare with more complete information." (16:34)

Danielle Kurtzleben warns of long-term democratic implications:

"The consequences of people not trusting the data... just makes a democracy weaker and less effectual." (14:45)

8. Conclusion

The episode wraps up with reflections on the intertwined nature of politics and economics: Danielle Kurtzleben and Scott Horsley underscore the significance of reliable data and the dangers of politicizing economic indicators. As tariffs take full effect and political tensions rise, the integrity of institutions like the BLS becomes paramount in maintaining public trust and effective governance.

Notable Quotes:

• Scott Horsley (04:55): "We're not going back to four-decade high inflation like we had a few years ago. But we have seen inflation start to creep up again that is moving in the wrong direction."
• Amy Klobuchar (07:30): "They say they don't like these tariffs if they're Republicans, but yet they still vote to rubber stamp what he's doing time and time again."
• Danielle Kurtzleben (15:51): "His action is on the backs of regular people... People’s grocery receipts don't lie. Their rent doesn't lie. Their childcare costs don't lie."

This episode offers an insightful analysis of the current tariff landscape under President Trump, highlighting the economic challenges and political dynamics at play. Through expert commentary and substantive discussion, listeners gain a nuanced understanding of the potential short-term and long-term impacts of these policies.