Podcast Summary: "And, I’m Talking To You About Tariffs"

Podcast Information

• Title: This is Gavin Newsom
• Host: Gavin Newsom
• Producer: iHeartPodcasts
• Episode Title: And, I’m Talking To You About Tariffs
• Release Date: April 28, 2025
• Description: Governor Gavin Newsom initiates open dialogues with individuals holding differing viewpoints to address pressing societal issues. In this episode, he delves into the real-world impacts of tariffs imposed by the Trump administration, featuring firsthand accounts from small business owners affected by these economic policies.

Introduction

Gavin Newsom opens the episode by contextualizing California's economic standing and the overarching uncertainty caused by the tariffs introduced by the Trump administration. Skipping the initial advertisements, the focus swiftly moves to the core discussion on tariffs and their profound effects on American businesses.

California’s Economic Landscape

At [02:09], Newsom highlights a significant economic milestone:

“The International Monetary Fund just announced that California is the fourth largest economy in the world. Only Germany, China, and the United States have a larger economic output than the state of California.”
[02:09]

Despite this impressive standing, Newsom underscores the vulnerability of California’s economy to external shocks, particularly the unilateral tariffs implemented under the Trump administration.

Impact of Tariffs on Businesses

At [02:18], Newsom introduces the episode's primary focus:

“The bad news is there’s no state in America that is more impacted by uncertainty and these tariffs imposed unilaterally by Donald Trump and the Trump administration.”
[02:18]

He emphasizes that the repercussions of these tariffs extend beyond large corporations, severely affecting small businesses, consumers, and supply chains both domestically and internationally.

Personal Stories: The Human Impact

Beth’s Story: The Struggles of a Startup

Beth, a small business owner from Zumbrota, Minnesota, shares her harrowing experience with the new tariffs that have jeopardized her company, Busy Baby Mat.

• Background:
  Beth founded her business eight years ago, inspired by the universal challenges new parents face with disorganized babies. After appearing on Shark Tank, she expanded her product line with her brother, now offering eight products aimed at keeping baby essentials within reach.

• Tariff Impacts:
  At [06:27], Beth reveals the drastic escalation of tariffs:

  “What I was expecting to pay $20, maybe $30,000 worth of tariffs, that's what I budgeted for now, is going to cost me $230,000 to bring into our country.”
  [06:27]

  This unexpected surge threatens her entire business model, potentially leading to loss of inventory, inability to pay employees, and risking her home.

• Emotional Toll:
  Beth articulates the personal anguish caused by the tariffs:

  “No one deserves to fail. No one deserves to lose their house, the roof over their children's home. No one.”
  [14:43]
  [14:43]

  She expresses frustration over political divisions and the lack of support from her local Republican congressman, emphasizing the need for political unity to support struggling American businesses.

• Governor Newsom’s Response:
  At [08:32], Newsom responds empathetically, acknowledging Beth’s plight and affirming California’s legal actions against the tariff policies:

  “We initiated a lawsuit to push back against the Trump administration... we have your back.”
  [08:32]

Jennifer Gold’s Story: The Wellness Spa in Palm Springs

Jennifer Gold, founder of Grounded Body Works in Palm Springs, provides another perspective on the tariff-induced hardships.

• Business Overview:
  Jennifer has been running her boutique wellness spa for 13 years. The pandemic already strained her business, but the recent tariffs have exacerbated challenges, particularly impacting the highly tourism-dependent Palm Springs economy.

• Economic Impacts:
  At [48:28], Jennifer details the direct effects:

  “We're expecting a 29% decrease in international tourism in the summertime.”
  [48:28]

  Additionally, she highlights rising costs of goods:

  “Shrimp is expected to increase up to 46% directly because of tariffs... we can expect to go up about 25% for everyday things.”
  [50:03]

• Emotional and Financial Strain:
  Jennifer shares the emotional burden of losing Canadian tourists, who constitute 75-90% of her clientele:

  “Every spring we say goodbye to our Canadian visitors. This year, many have said goodbye for good.”
  [50:47]

  The decline in tourism not only affects revenues but also the very character of Palm Springs, where local businesses are intertwined with community support systems.

• Governor Newsom’s Support:
  At [53:16], Newsom acknowledges Jennifer’s resilience and reiterates California’s commitment to challenging the tariffs:

  “We’re going to take it to the Trump administration and we’re going to beat back these tariffs.”
  [54:38]

Political and Social Commentary

Throughout the episode, Newsom touches on the broader political landscape, emphasizing the need for bipartisan support to mitigate economic turmoil. He criticizes the divisive political rhetoric that undermines collective efforts to support American businesses and communities.

At [15:25], Beth highlights the societal divide exacerbated by political leaders:

“We learn from our politicians is to be divided, to be hard line one way or the other. We need our representatives to come together and support the Americans.”
[15:25]

In response, Newsom advocates for unity and collaborative solutions, stressing that economic policies should prioritize the welfare of all Americans over partisan interests.

Conclusion

Governor Gavin Newsom wraps up the episode by reinforcing California’s stance against the detrimental tariffs and expressing unwavering support for affected businesses. He acknowledges the personal stories of Beth and Jennifer, underscoring the real-life implications of economic policies on everyday Americans.

“Thank you for sharing your story. Thank you for the remarkable work you’re doing... We have your back.”
[54:30]

Newsom pledges continued advocacy and legal action to alleviate the pressures on small businesses, aiming to restore economic stability and foster a supportive environment for entrepreneurs nationwide.

Key Takeaways

• Economic Impact: Tariffs imposed by the Trump administration have severely affected California’s economy, with ripple effects on small businesses, supply chains, and consumers.
• Personal Stories: Entrepreneurs like Beth and Jennifer exemplify the human cost of economic policies, facing potential business closures and personal financial ruin.
• Political Unity: The episode underscores the necessity for bipartisan cooperation to support American businesses and mitigate economic instability.
• Governor’s Commitment: Gavin Newsom pledges legal and political efforts to challenge the tariffs and support affected communities, highlighting California’s role in leading this fight.

Notable Quotes

• Gavin Newsom [02:09]:
  “The International Monetary Fund just announced that California is the fourth largest economy in the world...”

• Beth [06:27]:
  “What I was expecting to pay $20, maybe $30,000 worth of tariffs... is going to cost me $230,000...”

• Beth [14:43]:
  “No one deserves to fail. No one deserves to lose their house, the roof over their children's home. No one.”

• Jennifer Gold [48:28]:
  “We're expecting a 29% decrease in international tourism in the summertime.”

• Jennifer Gold [50:47]:
  “Every spring we say goodbye to our Canadian visitors. This year, many have said goodbye for good.”

• Gavin Newsom [54:30]:
  “We're going to take it to the Trump administration and we’re going to beat back these tariffs.”

Final Thoughts

This episode of "This is Gavin Newsom" provides an insightful exploration into the tangible effects of economic policies on individuals and communities. Through heartfelt narratives and a call for political solidarity, Newsom effectively highlights the urgent need to address and rectify the adverse impacts of tariffs to safeguard the livelihoods of American entrepreneurs and their families.