WSJ What’s News – PM Edition

Episode Title: Why Tariff Bills Are Catching Online Shoppers by Surprise
Date: September 16, 2025
Host: Alex Osola

Episode Overview

This episode of WSJ’s “What’s News” PM edition navigates the biggest developments of the day in business and politics. The main segment dives into how changes to U.S. import rules are leading to surprise tariff bills for online shoppers and the ripple effect on consumers and sellers. The episode also reports on key political wrangling over government spending bills in Congress, discusses IBM's bold push into quantum computing, and touches on YouTube’s rollout of AI-driven video tools.

Key Discussion Points & Insights

1. Government Shutdown Standoff and Spending Bill

Timestamps: 00:32–04:23

• House Republicans are working on a spending bill to prevent a government shutdown on Oct. 1, but omit a provision crucial to Democrats: continuation of enhanced Affordable Care Act subsidies.
• Siobhan Hughes, WSJ reporter (02:31), highlights the deadlock:

  “The main point of contention is over whether or not to include some enhanced Affordable Care act subsidies as part of the bill.”

• Republicans seek only short-term funding, while Democrats press for urgent action on subsidies set to expire by year’s end.
• The bill includes $30 million for member security (in response to the killing of conservative activist Charlie Kirk) and allows DC to use its own tax revenue, which was previously barred.

Memorable Quote:

“They are in a real game of chicken right now... And so the question is really, who blinks?”
— Siobhan Hughes (03:43)

2. Surprise Tariff Bills for Online Shoppers

Timestamps: 04:28–07:20

• Background:
  • Previously, the U.S. allowed an $800 “de minimis” exemption: packages under this value could enter duty-free.
  • That exemption is now largely ended, with packages valued under $800 now subject to tariffs.
  • U.S. Customs and Border Protection reports a steep decline in daily low-value package arrivals:

    “...fell to 1 million, down from an average of 4 million last year.”
    — Esther Fung (00:45)

• Current Situation:
  • Sellers vary: some absorb the tariff costs, others pass them to buyers (either in the price, at checkout, or post-delivery).
  • Many U.S. consumers are caught off guard, receiving unexpected tariff bills from delivery firms like FedEx and UPS.
  • Additional brokerage or processing fees charged by these carriers add to the sticker shock.

Notable Quotes:

“The confusing thing... is when the sellers say the US Consumer is responsible for paying the tariff. These consumers are now getting surprise tariff bills... and they feel blindsided by an additional tariff bill that comes with that package.”
— Esther Fung (05:34)

“All these nasty surprises, not good customer experience. And sellers, they are trying to adapt to this new environment.”
— Esther Fung (06:36)

• Consumer Impact:
  • Some shoppers are now more cautious or postponing international purchases.
  • Sellers grapple with whether to prepay tariffs or risk customer frustration over unwelcome charges.

3. IBM’s Big Bet on Quantum Computing

Timestamps: 08:13–11:57

• Background:
  • IBM has bounced back over the past five years, largely via hybrid cloud and consulting, and now CEO Arvind Krishna’s focus is on quantum computing.
• Quantum’s Promise & Challenge:
  • Krishna reveals IBM’s ecosystem strategy and willingness to share value:

    “We might perhaps collect 10% of the value. 90% of the value should go to the people and the consumers of the technology, not to us.”
    — Arvind Krishna (08:39)

  • The company acknowledges a likely 4–5 year wait for quantum’s commercial returns (potentially 2029–2030).

Memorable Exchange:

“A lot of the way he talks about this technology almost seems like science fiction. And when does the sci-fi become real?”
— Tim Higgins (10:18)

“Not today, but on the near-term horizon.”
— Tim Higgins (10:18)

• Competition:
  • IBM is now more measured after past over-promising (e.g., with Watson AI), competing with Google and others in the “race” for quantum supremacy.

4. Tech & Business News Briefs

YouTube’s AI Video Generator Rollout (11:58–12:55)

• YouTube launches VEO3, Google's AI-powered video creation tool, now accessible to a broader public.
• The tool garners both excitement and concern among creators and developers for its advanced production capabilities.

Notable Quotes & Timestamps

• “The number of packages... worth $800 or less ...fell to 1 million, down from an average of 4 million last year.”
  — Esther Fung (00:45)
• “Consumers are now getting surprise tariff bills from FedEx, UPS or DHL. And they feel blindsided...”
  — Esther Fung (05:34)
• “These are subsidies that got put into law by Democrats during the pandemic. They expire at the end of the year, and Republicans chose not to renew them...”
  — Siobhan Hughes (02:31)
• “Quantum is pretty straightforward. To maintain the momentum, we have to grow a very large ecosystem on Quantum...”
  — Arvind Krishna (08:39)
• “A lot of the way he talks about this technology almost seems like science fiction and when does the sci fi become real?”
  — Tim Higgins (10:18)

Timestamps for Key Segments

• Government Shutdown Debate: 00:32–04:23
• Tariff Surprise for Online Shoppers: 04:28–07:20
• Crime & Judicial Update (Charlie Kirk case): 07:24–07:53
• IBM Quantum Interview: 08:13–11:57
• YouTube AI News / Show Wrap: 11:58–12:55

Episode Takeaways

• Consumers and businesses alike are grappling with the end of tariff exemptions on low-value imports, leading to confusion, extra costs, and rapidly changing e-commerce strategies.
• Political tensions continue around government funding and health care subsidies, with real shutdown risks looming.
• IBM’s vision for the quantum future is cautiously optimistic and notably more measured than its past tech hypes.
• AI video tools are quickly rewriting creative industries, as YouTube's VEO3 spreads beyond early adopters.

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