Marketplace Morning Report The tea on tariffs
Jul 15, 2025
Tariff threats are heating up as the president targets goods from the EU and trades with Russia, prompting potential retaliatory measures. Small businesses, like a Virginia tea shop, are feeling the pinch from rising costs and navigating these challenges with innovative strategies. Meanwhile, recent inflation data reveals a sharp increase in prices, sparking concerns over economic growth and employment rates. The struggles of a 92-year-old family business in London also highlight resilience amid changing market dynamics.
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Tariffs Phase In Slowly
- Tariffs increase goods prices gradually over one to two years as businesses deplete stock and reorder.
- Most U.S. spending is on services, so tariffs impact inflation less than they threaten economic growth.
Tariffs Threaten Economic Growth
- Tariffs pose a bigger threat to U.S. economic growth than to inflation overall.
- Growth contraction may hurt the labor market, raising unemployment and impacting wage growth.
Tea Tariffs Hit Small Shops
- Rachel Rosner, tea shop owner, pays a 27% tariff on imported Chinese teas and is trying to avoid middlemen.
- She’s actively working with other businesses to push for tariff removal on tea to prevent price hikes.