Overview of A look at who's footing the bill for all those tariffs
This Marketplace episode (host Sabri Beneshore) reviews new research on who actually pays tariffs, how tariffs have affected consumer prices and inflation, and a related piece on financial secrecy in relationships ahead of Valentine’s Day. Reporters and guests: Nancy Marshall‑Genzer (tariffs), Chris Lowe (inflation outlook), and Rima Hraes with a segment from the podcast This Is Uncomfortable about financial secrets.
Tariffs: who is really paying?
- Key finding: Contrary to claims that foreign exporters pay U.S. tariffs, recent research shows U.S. firms and consumers absorb most of the cost.
- New York Fed research:
- Average tariff rate on U.S. imports rose from ~2.5% to ~13% last year.
- Exporters lowered prices only slightly; U.S. businesses and consumers ended up bearing nearly 90% of the import‑tax burden.
- Congressional Budget Office (CBO):
- Estimates that U.S. business owners will absorb ~30% of the tariff hit; the remaining ~70% is passed through to consumers.
- Tax Foundation analysis:
- Found President Trump’s tariffs resulted in an average tax increase of about $1,000 per U.S. household last year and $1,300 this year.
- Fed Chair Jerome Powell: warned import taxes push up prices and raise the overall cost of living.
Notable takeaway: Tariffs act like a tax on domestic consumers and firms—not on foreign exporters—so higher import duties tend to raise U.S. consumer prices.
Inflation update and Fed outlook
- January CPI highlights:
- Monthly increase: +0.2% (two‑tenths of a percent).
- Year‑over‑year: +2.4% — the lowest annual rate since May of the prior year.
- Chris Lowe (FHN Financial):
- January’s inflation was a bit tamer than expected.
- Some price increases from firms anticipating tariffs are falling out of the year‑over‑year comparisons.
- The Fed is unlikely to move quickly on rate cuts based on one month of improvement; it will want to see continued progress over several months.
Implication: Inflation is trending downward but the Fed will likely wait for sustained evidence before easing policy.
Financial secrets in relationships (This Is Uncomfortable segment)
- Street interviews: varied attitudes—some think financial privacy is fine, others regret keeping secrets.
- Survey data (Bankrate):
- ~40% of adults view financial secrets as at least as bad as physical infidelity.
- Nearly half in committed relationships admit they don’t know everything about their partner’s finances.
- Legal perspective (Randy Kessler, divorce lawyer):
- Hidden assets and secret accounts commonly surface when couples separate; disputes often center on what counts as the “marital pot.”
- Therapist perspective (Jeff Gunther):
- There’s a difference between secretive harmful behavior (e.g., gambling addiction) and small private purchases.
- Financial transparency is earned and depends on communication, trust, and past money experiences.
- Recommendation from the piece: talk about money; set expectations about privacy vs. transparency; build financial openness over time.
Actionable takeaways
- For consumers:
- Expect that tariffs are likely to show up in higher prices—budget accordingly.
- Monitor inflation trends over several months rather than reacting to a single report.
- For couples:
- Discuss financial boundaries and expectations early; decide what to share vs. keep private.
- Consider joint planning or legal/financial advice if there are significant assets or concerns about hidden funds.
Notable quotes
- “U.S. businesses and consumers still ended up shouldering nearly 90% of the cost of import taxes.” — New York Fed summary (reported)
- “Financial transparency is something that is earned.” — Jeff Gunther, couples therapist
Other notes / promotions
- The episode includes sponsor mentions (Viking, Wealth Enhancement) and promotion for Marketplace’s weekly podcast This Is Uncomfortable (new episodes Thursdays). The BBC’s The Interface is advertised at the end.