Marketplace Will August bring a wave of trade deals or a hike in tariffs?
Jul 18, 2025
Ana Swanson, a The New York Times contributor specializing in economic trends, joins Kimberly Adams, Marketplace's senior Washington correspondent. They discuss the impact of President Trump's tariffs on consumer prices and inflation. The duo dives into how higher tariffs are reshaping market behavior and the political dynamics in Washington. They also address the USDA’s controversial decision to stop factoring in race and gender for farm benefits, highlighting the challenges faced by minority farmers in accessing financial support.
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Tariffs Raise Consumer Prices
- Tariffs are causing one-time price increases in consumer goods like toys and furniture.
- The big concern is if these hikes trigger a feedback loop, causing runaway inflation.
Trump's Tariffs and Trade Deals
- President Trump seems content to keep tariffs high, framing tariff letters as trade deals.
- Expect some new deals, but also higher tariffs starting August 1, which could impact the economy.
Consumer Spending Remains Strong
- Consumers are still spending robustly, supported by steady job growth and a strong stock market.
- Hidden threats like tariffs and rising prices could eventually weigh on spending and the economy.