Tariffs!!! How to keep track of it all.
You're Probably Getting Screwed
Welcome to You’re Probably Getting Screwed, a weekly newsletter and video series from J.D. Scholten and Justin Stofferahn about the Second Gilded Age and the ways economic concentration is putting politics and profits over working people.
Tariffs! Are they happening? Are they not? At what percent? I’ll tell you one way to keep track of it all.
My buddy runs a small business that works with a lot of publicly traded companies that puts their logos on things like t-shirts, backpacks, phone chargers, hats, you name it.
Because of the uncertainty with the tariffs and the market being down, these companies are initiating a spending freeze.
On the other side of his business, after talks to his suppliers and competitors, the industry has come to an abrupt halt because of all of the uncertainty.
He sent me these numbers meaning that nothing is in the pipeline and things are drying up.
And I know the impacts are far reaching, so if your job or livelihood has been hit by the tariffs, please let us know.
If you’re looking for how to keep track of everything around the tariffs, the best thing to follow is Lori Walloch and her group ReThink Trade.
She wrote an OpEd in the American Prospect that I encourage folks to read.
She called out these Trump tariffs as incoherent, but that should not discredit targeted tariffs paired with investment as a policy lever.
Who knows what’s going to happen with these chaotic tariffs but we’re probably going to get screwed…
YOU’RE PROBABLY (ALSO) GETTING SCREWED BY:
The FTC
One of the first things Federal Trade Commission Chair Andrew Ferguson did after taking office was to effectively end an investigation the commission had undertaken under former Chair Lina Khan into surveillance pricing. That inquiry had been probing pricing consultants that had used recent increases in inflation to hike prices even higher. Now, according to a story in The Lever, those same consultants are helping clients capitalize on the chaotic tariff rollout.
“Much like during the pandemic inflation, Trump’s mounting trade wars with China and other countries provide fertile ground for firms to find new ways to pass the higher costs on to consumers. Despite the temporary pause on Trump’s Liberation Day “reciprocal tariffs,” a 10 percent across-the-board duty on most imports remains in place, as well as 125 percent tariff rates on goods from China.”
DOGE
Last week the Consumer Financial Protection Bureau (CFPB), which had already been hit hard by DOGE, laid off another 1,500 workers leaving just 200 people at the agency. While a federal judge has, for now, halted the layoffs it is clear Elon Musk wants to defund the agencies tasked with policing Wall Street and corporate America. One of those 1,500 workers spoke to A More Perfect Union about how he was fired and the work he has been doing at CFPB.
The FTC Again
A must read op-ed in The Hill by RF Buche a fourth-generation grocer in South Dakota. Buche wrote about the firing of FTC Commissioner Alvaro Bedoya and what it means for efforts to crack down on anticompetitive conduct in the grocery industry.
“President Trump promised to lower grocery prices while on the campaign trail, but he sabotaged that promise by firing one of the biggest champions for rural grocers and supporters of antitrust enforcement that would’ve helped the president keep his word.”
Tariffs
One of the likely beneficiaries of tariffs is retail giant Walmart. There is no shortage of irony here as Walmart has been a significant driver of deindustrialization as it used its growing market power and liberalized trade to push suppliers to ship jobs overseas. In an earnings call Walmart CEO Doug McMillon told investors that his company sees the Trump Administration’s tariff chaos as an opportunity to gain further market share. Stacy Mitchell of the Institute for Local Self Reliance has more insight here on what tariffs could mean for Walmart’s grip over retail.
Last week US District Judge Leonie Brinkema sided with the Department of Justice and several states that alleged Google had created a monopoly over digital advertising. This is a big victory for former Biden antitrust officials Jonathan Kanter and Doha Mekki who brought the case. Kanter, now a CNBC contributor, had this to say about the importance of this case:
DOJ Antitrust Cuts
Senators Grassley, Durbin and Lee sent a letter to the Department of Justice expressing concerns about DOJ’s proposal to close Antitrust Division field offices in Chicago and San Francisco. Those offices have been critical to cracking down on anticompetitive conduct in the agriculture and tech industries. Lee Hepner of the American Economic Liberties Project also provided some thoughts to the San Francisco Chronicle on what the closure of the west coast office could mean.
SOME GOOD NEWS
San Diego Stands Up to Private Equity
As antitrust attorney Basel Musharbash has detailed, private equity rolled up the fire truck manufacturing industry and raised costs for taxpayers. At least one local unit of government is now fighting back.
Arkansas Cracks Down on PBMs
Governor Sarah Huckabee Sanders signed legislation recently that will prohibit pharmacy benefit managers (PBM) from owning pharmacies, which is one of the way PBMs have used their power to monopolize the pharmacy supply chain and squeeze consumers while harming local pharmacies. But the real praise goes to the local pharmacies in Arkansas that have fought so hard, on both sides of the aisle, to get this done. If Arkansas can do it, your state legislator can as well, so call them today!
BOOK CLUB
We are excited to announce our book club selection for April. This month’s book is “99% Perspiration” by reporter Adam Chandler. Adam’s new book is a look at the myths we tell ourselves about hard work, with some fascinating profiles of how consolidation impacts working people.
You can purchase 99% Perspiration here but Adam said he also would encourage you to request it from your local library. And be sure to send in your questions for Adam by commenting below.
BEFORE YOU GO
Before you go, I need two things from you: 1) if you like something, please share it on social media or the next time you have coffee with a friend. 2) Ideas, if you have any ideas for future newsletter content please comment below. Thank you.
Standing Tall for All,
J.D. Scholten