WSJ What’s News: Corporate America Is Picking Up the Tab for Trump’s Tariffs

Release Date: July 25, 2025
Host: Gene Whalen, The Wall Street Journal

Corporate America Bearing the Cost of Tariffs

In the latest episode of WSJ What’s News, Gene Whalen delves into the financial implications of President Trump’s tariffs on Corporate America. As the United States has accumulated an additional $55 billion in tariffs this year, businesses are predominantly absorbing these costs. Gene explains, “Tariffs are typically paid by importers when goods reach US ports, so it's usually a manufacturer, a logistics or customs broker, or a retailer that ordered the shipment” (01:00).

Natalie Andrews, a seasoned economist, elaborates on the strategies businesses are employing to manage these tariffs. She states, “Businesses so far they're paying the higher tariffs when goods arrive at port or when they buy the goods from some other company that has imported them” (01:38). Companies are hesitant to raise prices prematurely, fearing a competitive disadvantage and potential backlash from the Trump administration. Andrews highlights that “most economists expect companies to pass this along to consumers in one way or another” (02:37), either through increased prices or by cutting costs in other areas like hiring and product development.

Foreign Suppliers and Consumer Impact

A key factor in this dynamic is the role of foreign suppliers. Natalie points out, “Foreign suppliers are not cutting their prices, so that means foreign companies are not footing the bill” (03:10). This situation forces US companies and ultimately consumers to bear the financial burden. Despite these tariffs, consumer inflation hasn’t surged significantly yet, suggesting that the primary impact remains within Corporate America.

Prospects for a US-Europe Trade Deal

Amidst these tariff challenges, there is growing optimism for a trade agreement between the US and Europe. European Commission President Ursula von der Leyen has engaged in high-level discussions with President Trump, with plans to meet in Scotland to negotiate transatlantic trade relations. Whalen notes, “European officials are optimistic that they're nearing an agreement on an outline deal that could see the European Union accept 15% baseline tariffs on most goods” (04:00). However, any agreement remains contingent on Trump’s approval and his potential push for additional concessions.

Stock Market Reactions and Technology Companies' Policy Shifts

The episode also covers the recent performance of major stock indices. The S&P 500 reached its fifth consecutive record close, marking the longest streak in over a year, while the Nasdaq and Dow saw slight gains (05:00). In related news, Meta Platforms and Alphabet’s Google have decided to halt political advertisements in the European Union. Meta cited new EU laws aimed at combating misinformation and foreign interference as the reason for this move, aligning with Google’s similar decision made last November (05:30).

Controversies Surrounding Jeffrey Epstein’s Birthday Book

A controversial topic discussed is the revelation about Jeffrey Epstein’s 2003 birthday book, which prominently features past presidents rather than future ones. The book includes a notable entry from Bill Clinton, among other high-profile figures such as Donald Trump and Leon Black. Clinton’s representative stated that he had severed ties with Epstein over a decade ago and was unaware of Epstein’s alleged crimes (06:00). This revelation has sparked discussions about the extent of Epstein’s influence and the nature of his associations with powerful individuals.

Banks Becoming More Selective with Credit Card Offerings

Shifting focus to the financial sector, Imani Moise, the WSJ personal economics reporter, discusses how banks are increasingly selective in issuing credit cards. “Banks really want the big spenders, people with high credit scores, people who are going to charge maybe $4,000 a month on a card and pay it off” (07:33). Approximately 80% of credit card offers are now directed toward individuals with exceptional credit scores (above 780). This strategy is a cautious response to economic uncertainties, including potential rising unemployment and ongoing trade tensions. Moise explains, “It shows that banks are cautious… they are hedging a bit by focusing on customers that they see as safer” (08:26).

White House’s Initiative to Fine Universities Over Antisemitism

The White House is actively seeking fines from several universities accused of failing to curb antisemitism on campus. Natalie Andrews, White House correspondent, reports that Columbia University has agreed to pay $200 million, setting a precedent for other institutions like Cornell, Duke, and Harvard. These universities are navigating a delicate balance between securing federal funding and maintaining their reputations among alumni and faculty. Andrews notes, “This is a delicate dance for a lot of these schools who are trying to please their alumni, their faculty and also get that federal funding back” (09:46).

Shooting at the University of New Mexico

Tragically, the episode also covers a recent shooting at the University of New Mexico, resulting in one death and another injury. The incident has led to a lockdown as authorities search for the suspect. Official statements confirmed that the surviving victim’s injuries are not life-threatening, but details about the shooter and the deceased remain undisclosed (09:21).

Looking Ahead

Tomorrow’s episode will feature a weekly markets wrap-up, and Sunday’s What’s News will include an in-depth discussion on the ambitious plans to reboot America’s nuclear energy program.

Notable Quotes:

• Natalie Andrews: “Most economists expect companies to pass this along to consumers in one way or another.” (02:37)
• Imani Moise: “Banks really want the big spenders, people with high credit scores, people who are going to charge maybe $4,000 a month on a card and pay it off.” (07:33)

Produced by Pierre Biennime with Supervising Producer Michael Cosmides. Theme music by Michael Lavall. Development Producer Aisha El Musleam. Deputy Editors Scott Salloway and Chris Zinsley. Head of News Audio Falana Patterson.