Planet Money Summer School 7: Trade blocks and blockages
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Aug 20, 2025 Carolyn Freund, an expert in trade and economics, and Zoe Chase, a reporter who uncovered the impacts of sugar protectionism, dive into the complexities of trade barriers. They discuss how tariffs, while popular, often lead to unintended consequences that can hurt American industries. The conversation highlights the sweet irony of sugar tariffs affecting candy makers and explores the tangled web of protectionism in auto regulations across the U.S. and Europe. Their insights reveal how well-intentioned policies can raise costs for consumers and challenge global competitiveness.
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Trade Barriers Go Beyond Tariffs
- Governments use many tools besides tariffs to restrict trade, including quotas and regulatory paperwork.
- These interventions distort resource allocation and raise consumer prices across the economy.
Candy Factory’s Sugar Pain
- Spangler Candy uses about 100,000 pounds of sugar a day and stores only four days' worth onsite.
- Paying roughly 15 cents more per pound in the U.S. creates a multi-million dollar annual sugar penalty for candy makers.
Legal Price Floor Raises U.S. Sugar
- U.S. law guarantees a minimum domestic sugar price, keeping U.S. sugar well above world prices.
- That legal floor is a direct cause of higher consumer and producer costs in the U.S.