This week’s biggest news: tariffs . . . and dire wolves
Apr 10, 2025
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Join Ryan Petersen, CEO of Flexport, who shares expert insights on the impact of recent tariffs and global trade challenges. He discusses how businesses, especially small manufacturers, are navigating the tumultuous landscape. Meanwhile, Ben Lamm, cofounder of Colossal Biosciences, reveals exciting progress on de-extinction projects, including the revival of the Woolly Mammoth and the astonishing introduction of genetically modified direwolves, sparking debates on ethics and ecological implications.
The recent tariffs imposed by the Trump administration have created significant operational chaos for businesses, particularly affecting those reliant on duty-free imports from China.
Flexport has adapted its logistics strategies amidst changing tariffs, emphasizing the crucial need for real-time information to navigate supply chain challenges effectively.
Colossal Biosciences' ambitious project to resurrect extinct species like the woolly mammoth has sparked both excitement and skepticism regarding its ecological implications and public perception.
Deep dives
Impact of Current Tariffs on Businesses
The episode discusses recent sweeping tariffs announced by the Trump administration and their immediate effects on businesses. Flexport's CEO, Ryan Peterson, describes the chaos that ensued as his company scrambled to understand the implications of these tariffs, especially the drastic increase in duties on imports from China. He highlights that many businesses, particularly those relying on the de minimis exemption to import products duty-free, faced catastrophic challenges when that exemption was eliminated. The uncertainty left many companies paralyzed, as they awaited potential negotiations that could reshape the tariff landscape.
Navigating Supply Chain Challenges
Ryan Peterson elaborates on the frantic efforts to manage supply chain logistics amidst changing tariffs, detailing how Flexport adapted its operations to meet urgent demands. The logistics firm employed an extensive team to address client concerns, conducting webinars to educate customers on the latest developments. He emphasizes the importance of real-time information in such a volatile environment, suggesting that companies who had been storing inventory ahead of the tariff changes were somewhat better off. Peterson also predicts a notable decline in ocean freight rates as businesses adjust to new duty rates and inventory levels.
Future of Manufacturing in Latin America and Beyond
The conversation shifts toward the potential geographical shifts in manufacturing resulting from the new tariffs, particularly the increased duty rates on imports from China. Peterson suggests that while Mexico and Vietnam may traditionally have been favored for their lower labor costs, the changing duty landscape compels businesses to consider shifting operations to Latin America. Although companies face challenges in making such transitions, especially smaller firms struggling to find manufacturers willing to work with them, there is a growing sentiment towards diversifying supply chains. The possibility of lower tariffs on Latin American products may incentivize businesses to reevaluate their manufacturing locations further.
Controversial Efforts in Species Revival
Later in the episode, the focus turns to the innovative yet polarizing efforts of Colossal Biosciences to bring back extinct species like the woolly mammoth. CEO Ben Lam explains that the company is not only ambitious but also addressing ecological concerns with their mission, which has drawn mixed reactions from the public. He recounts the viral sensation caused by the unveiling of their genetically modified woolly mice, emphasizing the blend of scientific achievement with public perception. Despite skepticism from critics, Lam believes that the advancements made by Colossal could have significant long-term ecological benefits, positioning their work as a pioneering initiative in conservation science.
The Role of Artificial Intelligence in Business
The episode touches briefly on the increasingly pivotal role of artificial intelligence within businesses, highlighted by Shopify CEO Toby Lutke's memo recommending the use of AI before expanding headcount. This directive raises concerns about job security among employees and reflects broader industry trends of relying on technology to improve efficiency. Peterson warns that while AI can enhance operational capabilities, it must be balanced with workforce considerations. He anticipates that as industries adapt to these advancements, businesses will need to find harmony between technology and human capital to navigate the ongoing changes in the economic landscape.
On today’s episode, cohosts Yasmin Gagne and Josh Christensen break down the latest news in the world of business and innovation, including President Trump delaying reciprocal tariffs, TikTok-alternative Skylight, a major win for college athletes, and Microsoft’s 50th anniversary. (00:46)
Next, Yaz and Josh interview Flexport CEO Ryan Petersen about how Flexport and the companies it works with are digesting the tariffs plus the continued uncertainty around global trade. (05:46)
Finally, Yaz interviews cofounder and CEO of Colossal Biosciences, Ben Lamm, about the company’s progress in trying to bring back the Woolly Mammoth and the criticism the company is facing after it unveiled three dire wolf puppies. (31:34)
