WSJ What’s News: The Businesses Adding an Extra Charge With Trump’s Name On It
Release Date: April 18, 2025
Host: Pierre Bienname, The Wall Street Journal

Introduction

In this episode of WSJ What’s News, Pierre Bienname delves into the latest developments surrounding the Trump administration's policies and their ripple effects on various sectors of the U.S. economy. The discussion ranges from high-profile regulatory pressures on academic institutions to the nuanced reactions of businesses grappling with new tariffs. This comprehensive analysis offers listeners an in-depth understanding of how political maneuvers influence market dynamics and consumer behavior.

Trump Administration’s Pressure on Harvard University

Key Developments:

The Trump administration is intensifying its scrutiny of prominent institutions, with Harvard University at the forefront. The White House is requesting Harvard to disclose records of foreign funding received over the past decade, signaling a broader campaign to ensure that leading universities are not unduly influenced by foreign entities.

Notable Quotes:

• Pierre Bienname (00:55): "President Trump is replacing the acting IRS commissioner he appointed just three days ago."

• Secretary of Education Linda McMahon (Statement at 01:15): "The request is meant to ensure Harvard is not being manipulated by or doing the bidding of foreign entities."

Harvard’s Response:

Harvard counters the administration's claims by affirming its long-standing compliance with federal laws that mandate reporting of significant foreign donations. The university maintains transparency and denies any wrongdoing or undue foreign influence.

Leadership Shake-Up at the IRS

Key Developments:

In a swift move, President Trump is replacing the acting IRS commissioner after just three days in the role. Deputy Treasury Secretary Michael Falkender steps in as the new leader of the IRS, marking the fifth individual to hold this position within the year. This change comes amidst widespread departures from key managerial positions within the IRS, exacerbating instability within the agency.

Notable Quotes:

• Pierre Bienname (02:00): "Deputy Treasury Secretary Michael Falkender will now run the Internal Revenue Service, becoming the fifth person to hold that job so far this year."

Implications:

The frequent leadership changes have heightened uncertainty surrounding tax enforcement and regulatory policies, potentially impacting both taxpayers and the broader economic landscape.

Consumer Sentiment and Retail Adjustments

Key Insights:

Despite a general decline in consumer confidence, higher-income consumers continue to spend, albeit with strategic adjustments. Middle and lower-income consumers are increasingly opting for more budget-friendly options, leading retailers to adapt their offerings to cater to shifting preferences.

Discussion Highlights:

• Jennifer Williams (03:08): "They are also shopping at chains that still cater to the budget-conscious shopper, but they're not selling items with price tags at a dollar."

• Performance Metrics:

  • Academy Sports and Outdoors: Experienced a mid single-digit increase in higher-income consumer traffic, despite a 3% drop in same-store sales.
  • Dollar Tree: Noted a 2% growth in same-store sales driven by increased average purchase tickets and customer traffic.

Strategic Responses:

Retailers are investing in targeted marketing and adjusting their product assortments to attract higher-income shoppers. For instance, Academy Sports and Outdoors introduced Jordan products to elevate their premium offerings, aiming to draw in affluent customers.

Businesses Implementing “Trump Tariff” Surcharges

Key Developments:

In response to ongoing tariff uncertainties, many U.S. businesses are introducing additional charges labeled as "Trump Tariff" surcharges. This transparent pricing strategy aims to clarify the reasons behind price increases and mitigate consumer backlash.

Notable Quotes:

• Pierre Bienname (06:27): "You may see them labeled Trump tariff surcharge or something like that as businesses want to make one thing clear, these tariffs weren't our idea."

• Ryan Babazzine, CEO of Jolie (07:58): "Our business is off about 15 to 20%, not because of price increase, because of uncertainty."

• Alexandra Fine, CEO of Dame (08:54): "Everyday consumers don't understand how the tariffs are going to impact them... We thought this would be a good opportunity to educate and kind of just let people know that this is the policy that is impacting our price."

Business Strategies:

Companies across various sectors, from bathroom fixtures to sexual health products, are adopting this surcharge approach to maintain price stability while transparently communicating the influences of tariffs on their operations. This method contrasts with blanket price increases, allowing businesses to adjust surcharges dynamically as tariff rates evolve.

International Tensions: U.S. Accusations Against China

Key Developments:

The U.S. has accused China of supplying satellite imagery to Yemen's Houthi militants, exacerbating tensions in the Red Sea region. This allegation underscores the growing cooperation between Beijing and Moscow in supporting rebel groups, prompting the U.S. to escalate military presence and actions to secure key commercial routes.

Notable Quotes:

• State Department Spokesperson (09:00): "A Chinese company has been providing the group with satellite imagery even after the US had pressed China to stop the support."

Implications:

The increased U.S. military intervention, including deploying a second aircraft carrier, highlights the strategic importance of the Red Sea for global commerce and the lengths to which the U.S. is willing to go to protect these interests amidst rising geopolitical tensions.

The Rise of Artificial Intelligence in Marketing

Key Insights:

Marketers are increasingly leveraging artificial intelligence to enhance brand communication and campaign efficiency. AI technologies are being integrated into various aspects of marketing, from personalized content creation to dynamic campaign management, signaling a shift towards more automated and data-driven strategies.

Notable Quotes:

• Patrick Coffey (11:39): "Brands aren't waiting for perfection."

• Ryan Babazzine (07:58): "Marketers have a constant demand to produce more content... using generative AI tools, and they do everything from creating websites to straight up generating ideas for campaigns and now making videos."

Future Outlook:

As AI continues to evolve, its role in marketing is expected to expand, potentially automating entire campaign processes and enabling more precise and personalized consumer interactions. This technological advancement promises to revolutionize how brands engage with their audiences, although it also raises questions about the balance between automation and human creativity.

Looking Ahead

• Upcoming Segment (Pierre Bienname): "Over the coming weeks, we're going to be taking a look at how companies are responding to Trump's tariffs and the tactics and strategies they're using to react, to survive or even take advantage of the new trade war."

• Future Episodes:

  • Weekly Markets Wrap-Up: A detailed analysis of market movements and trends.
  • What’s News Sunday Deep Dive: Exploring how Trump administration policies may force U.S. universities to reevaluate their financial strategies.

Conclusion

This episode of WSJ What’s News provides a thorough exploration of the interplay between political decisions and business strategies in the current economic climate. From regulatory pressures on academic institutions to strategic pricing maneuvers by retailers and businesses, the discussions highlight the adaptive measures companies are taking to navigate uncertainty and maintain consumer trust. Additionally, the episode touches on international tensions and the burgeoning role of AI in marketing, offering listeners a comprehensive overview of the factors shaping today's business landscape.

Produced by: Anthony Banci
Supervising Producer: Michael Kosmides
Theme Music by: Michael Lavalle
Development Producer: Aisha Al Muslim
Deputy Editors: Scott Salloway and Chris Sinsley
Head of News Audio: Falana Patterson

Host: Pierre Bienname
Thank you for listening.