WSJ What’s News – PM Edition

Episode: The Trump Administration Is Quietly Watering Down Some Tariffs
Date: October 17, 2025
Host: Alex Osola
Guests: Gavin Bade (Trade and Economic Policy Reporter), Sarah Nassauer (Retail Reporter)

Episode Overview

This episode dives into two core stories impacting business and politics:

1. The Trump Administration’s Shifting Tariff Policy: Despite making tariffs a signature trade move, President Trump is now increasing exemptions and offering more flexibility in tariff policy, potentially affecting international businesses and trade partners.

2. Walmart’s Wage Revolution: A retrospective look at Walmart’s controversial wage increases a decade ago—seen as a risky move then but now regarded as a successful strategy that spurred industry-wide changes and growth.

Key Discussion Points and Insights

[00:32–04:44] The Trump Administration’s Tariff Policy Pivot

• President Trump’s Position on Ukraine & Russia:

  • Trump expresses a preference for ending the Ukraine-Russia war over providing additional weapons.
  • He recently spoke with Russian President Vladimir Putin and plans to meet him in Hungary soon to pursue peace negotiations.
  • Notable quote:

    “Would much rather have them not need Tomahawks, would much rather have the war be over.”
    —Gavin Bade [01:26]

• Tariff Exemptions and International Negotiations:

  • Trump’s “reciprocal tariffs,” originally prominent, are being quietly modified.
  • Dozens of products have recently received new tariff exemptions, accompanied by an executive order opening the door for even more exemptions tied to trade negotiations.
  • The administration is signaling to other nations that they can secure carve-outs through deals.
  • Notable quote:

    “They’re putting the offer out there to other nations to say if you do a deal with us, we can carve out more of these tariffs as well.”
    —Gavin Bade [02:20]

• Legal and Strategic Reasons for Tariff Shift:

  • Reciprocal tariffs face a Supreme Court challenge, as they’re based on a novel use of national security law.
  • The administration is moving emphasis toward “Section 232” tariffs, widely seen as having more secure legal footing.
  • Companies face uncertainty due to the lack of a formal exemption process.
  • Memorable moment:

    “If you want an exemption, you kind of have to call up Howard Lutnick, the commerce secretary, or call up Jameson Greer, the US Trade representatives, and hope that you can convince them... There’s not a bona fide technocratic process.”
    —Gavin Bade [04:02]

[04:52–06:43] Financial Headlines

• Goldman Sachs is launching a team focused on financing infrastructure for the AI boom and traditional sectors like toll roads and airports.
• Jefferies addresses investor concern after the auto parts supplier First Brands collapses, with shares rebounding 6% following clarifications from its CEO [05:43].
• American Express reports higher cardholder spending and increased fees, leading to a 7% stock jump.
• The Dow, S&P 500, and NASDAQ all close higher, boosted in part by Trump’s statements dialing back threats of new tariffs on China.

[07:16–11:38] Walmart’s Wage Decision—A Case Study

• The Historic 2015 Pay Raise:

  • Walmart raised starting wages to $9/hour, impacting nearly half its workforce.
  • Initial investor response was negative, dropping $21.5 billion in market value in one day.
  • Memorable moment:

    “I think it surprised a lot of people. I mean, I think people were shocked, frankly... The stock does not get hit like this.”
    —Jim Cramer, quoted by Alex Osola [09:13]

• Long-Term Outcomes:

  • The wage hike was the foundation for a decade of strategic change, including increased pay, more training and benefits, and a focus on retention/promotion.
  • Walmart also invested in e-commerce and improved store standards, fueling steady and strong sales growth.
  • Notable quote:

    “They kind of use that announcement as a foundation for lots of other big strategy shifts over the last 10 years.”
    —Sarah Nassauer [09:38]

• Industry Impact:

  • Competitors like Target and TJX matched Walmart’s wage hikes within weeks; later, Amazon, Target and others surpassed it.

• Current Wage Standing:

  • Walmart’s pay is now slightly above average for the retail sector, by deliberate design—balancing wages, benefits, and opportunities for advancement.
  • Notable quote:

    “They used to be at the bottom and now they’re just above the middle. And that’s where they say they want to be on wages because... they want to have enough money to do other things like bonuses and benefits and training.”
    —Sarah Nassauer [11:08]

Notable Quotes & Memorable Moments

• [01:26] Gavin Bade (on Trump and Ukraine):

  “Would much rather have them not need Tomahawks, would much rather have the war be over.”

• [02:20] Gavin Bade (on tariff carve-outs):

  “They’re putting the offer out there to other nations to say if you do a deal with us, we can carve out more of these tariffs as well.”

• [04:02] Gavin Bade (on businesses seeking tariff exemptions):

  “If you want an exemption, you kind of have to call up Howard Lutnick, the commerce secretary, or call up Jameson Greer, the US Trade representatives, and hope that you can convince them... There’s not a bona fide technocratic process."

• [09:13] Jim Cramer (via Alex Osola):

  “I think it surprised a lot of people. I mean, I think people were shocked, frankly... The stock does not get hit like this.”

• [09:38] Sarah Nassauer (on Walmart’s strategic shift):

  “They kind of use that announcement as a foundation for lots of other big strategy shifts over the last 10 years.”

• [11:08] Sarah Nassauer (on Walmart’s wage positioning):

  “They used to be at the bottom and now they’re just above the middle... and that’s where they say they want to be on wages...”

Timestamps for Important Segments

• 00:32–04:44: Trump’s shifting tariff approach, trade negotiation strategy, and legal backdrop.
• 04:52–06:43: Market and financial news including Goldman Sachs, Jefferies, and American Express.
• 07:16–11:38: Walmart’s wage increase, impacts on business and the retail sector, and long-term strategic outcomes.

Conclusion

This episode provides a concise update on two crucial shifts: the Trump administration’s pragmatic moderation on tariffs amid growing legal and international pressures, and the surprising long-term benefits of Walmart’s pioneering wage hike—now a business school case study in strategy and adaptation. Listeners gain an informed view of evolving trade policy and the ripple effects of corporate wage decisions on both industry and labor.