1A The Effect Of Tariffs On Small Businesses
Apr 17, 2025
Joining the discussion are Ernie Tedeschi, Director of Economics at the Yale Budget Lab and former White House Chief Economist, and Carl Shevik, CEO of mattress companies Earthfoam and Sleep on Latex. They delve into how tariffs, especially on imports from China, create market instability for small businesses. Personal stories reveal the challenges faced by entrepreneurs, particularly those relying on imported goods. The conversation also uncovers the uncertainties of navigating global supply chains and the impact on consumer costs.
AI Snips
Chapters
Transcript
Episode notes
Small Business Yarn Shop Impact
- Lila Lawless runs a hand-dyed yarn shop relying on imported yarn, dyes, and fibers.
- Tariffs raise her costs unpredictably and could force her to increase prices despite economic challenges.
Tariff Costs Passed to Consumers
- Tariffs imposed by the U.S. are almost entirely paid by American consumers, not foreign countries.
- Businesses initially pay tariffs but usually pass nearly 100% of the cost on to consumers.
Specialized Global Supply Chain
- Carl Shevik sources natural latex from Sri Lankan small farmers for his mattress business.
- This specialized supply chain is essential because natural rubber isn't produced in the U.S.