How pre-tariff spending could affect household budgets down the line
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Linley Dixon here. If you care about where your food comes from, you've got to check out the Real Organic podcast. Each episode uncovers the forces reshaping organic food, like why corporate lobbying is redefining what organic means and how farmers are fighting back. With interviews from farmers, scientists, and activists, it's an eye-opening series for anyone who wants the truth about what's on their plate.

So follow The Real Organic Podcast on Apple Podcasts, Spotify, or wherever you get your podcasts. Don't miss out. In honor of Military Appreciation Month, Verizon thought of a lot of different ways we could show our appreciation, like rolling out the red carpet, giving you your own personal marching band, or throwing a bumping shindig.

At Verizon, we're doing all that in the form of special military offers. That's why this month only, we're giving military and veteran families a $200 Verizon gift card and a phone on us with a select trade-in and a new line on select unlimited plans. Think of it as our way of flying a squadron of jets overhead while launching fireworks. Now that's what we call a celebration because we're proud to serve you. Visit your local Verizon store to learn more.

On again, off again, tariffs change yet again.

From Marketplace, I'm Sabri Beneshour, in for David Brancaccio. The U.S. and China have agreed to temporarily cut tariffs on each other's exports for 90 days while they figure out a trade deal. At stake is over $500 billion worth of goods traded between the two countries. U.S. Treasury Secretary Scott Besson said neither side wants to decouple. U.S. market futures surged after the announcement. So did Chinese markets. Marketplace's China correspondent Jennifer Pak has more from Shanghai.

The move is in line with expectations of exporters and consumers in both the U.S. and China, says the Chinese Commerce Ministry. Under the agreement, U.S. tariffs on most Chinese exports will be cut from 145% to 30%, plus any pre-existing duties.

while China will drop tariffs on all American goods from 125% to 10%. This is on top of the 10% to 15% retaliatory duties on certain American exports, such as coal and agricultural products. But a 90-day tariff reprieve still doesn't make it easy for businesses to plan. It takes weeks to manufacture products and even longer to ship goods.

Once the products arrive on each country's shores and when tariffs are collected, businesses worry, would the final tariffs be the same as originally budgeted? In April, Chinese exports to the U.S. dropped by 21% year-on-year, while American exports to China dropped 14%. The tariff reduction will start on Wednesday as trade talks continue. In Shanghai, I'm Jennifer Pak for Marketplace.

And for months before this announcement, businesses tried to stockpile goods before tariffs hit. So did many consumers. From Apple to Audi, consumer goods companies have been reporting rising sales. Marketplace's Kristen Schwab has more on how this rush to spend early affects household budgets down the line.

David Swartz has been seeing quite a few car commercials promoting pre-tariff pricing. Even like local dealers, we're clearly encouraging people to buy now and not wait till later.

Swartz, a senior analyst at Morningstar, says companies in all kinds of sectors are warning that prices will go up and inventory will go down. And that triggers a scarcity mindset in consumers, says Dan Blanchard at the Yale Center for Customer Insights. This idea that you need to get it before it's gone.

Especially for big ticket items like electronics and appliances. Blanchard says if you're planning to buy something in the next few months, it does make sense to buy it now. But don't get too caught up in stocking up. It's easier for consumers to disproportionately focus on immediate costs and savings. Than it is to think about the long-term effects on their wallets. Throwing off the budget or going into credit card debt to save now could cost more down the line, especially if there's an economic downturn.

I'm Kristen Schwab for Marketplace. President Donald Trump announced Sunday that he plans to sign an executive order later today that would aim to bring down the cost of some medications in the U.S. by tying them to prices charged in other countries. Trump tried something similar in his first term, but the effort was blocked by federal courts. In honor of Military Appreciation Month, Verizon thought of a lot of different ways we could show our appreciation, like rolling out the red carpet.

Giving you your own personal marching band. Or throwing a bumping shindig. At Verizon, we're doing all that in the form of special military offers. That's why this month only, we're giving military and veteran families a $200 Verizon gift card and a phone on us with a select trade-in and a new line on select unlimited plans. Think of it as our way of flying a squadron of jets overhead while launching fireworks. Now that's what we call a celebration. Because we're proud to serve you. Visit your local Verizon store to learn more.

$200 Verizon gift card requires smartphone purchase $799.99 or more with new line on eligible plan. Gift card sent within eight weeks after receipt of claim. Phone offer requires $799.99 purchase with new smartphone line on unlimited ultimate or postpaid unlimited plus. Minimum plan $80 a month with auto pay plus taxes and fees for 36 months. Less $800 trade-in or promo credit applied over 36 months. 0% APR. Trade-in must be from Apple, Google, or Samsung. Trade-in and additional terms apply.

Federal government budget cuts under the Department of Government Efficiency have been deep and sweeping, as we have reported. And this week, we get a look at how cuts are playing out in Indian country. A new survey from the National Center for American Indian Enterprise Development details how policies in the first few months of the Trump administration are affecting tribal economies. Marketplace's Savannah Peters has more.

The National Center has been working to help more tribally run businesses reach global markets. Under the Biden administration, it got some funding to support that work. We were on a five-year grant for our export center. We were on year four. Year five was just canceled. And without really explanation...

Chris James is president and CEO of the National Center. He says that cancellation came after the Trump administration slashed staff at the Minority Business Development Agency. We knew that might have been coming down the pipeline, but actually getting the notifications is, you know, it was very real. He says he's hearing from tribal leaders all around the country with similar experiences.

In their survey responses, they talked about federal grants that support vital services getting frozen, federal contracts that tribes were counting on to bring in revenue abruptly canceled, and layoffs at agencies they work closely with. With every administration, there are changes.

How those changes are implemented is a big thing. A lot of times we would like to see things done with a scapel instead of a chainsaw. None of the tribal leaders Marketplace reached out to were willing to talk on the record in what they see as a risky political environment. Mikayla Madrid is with the nonprofit Native Governance Center, which has been helping tribes navigate the change of administration. Just kind of the general theme has been chaos.

One thing she's noticed and that came up in the survey, federal funding and programs that support tribes sometimes getting swept up in Trump's anti-DEI push. That is concerning because Native nations and citizens of tribal nations are not under the diversity, equity, and inclusion umbrella. Instead, Madrid says the federal government's obligations to tribal nations are based in treaties.

But this second Trump administration has offered mixed messages on how it views its relationship with tribes, says economist Randall Aki at UCLA. This uncertainty is problematic in and of itself. If the uncertainty persists, Aki says it could stall growth in tribal economies. Tribal nations and governments are going through their days without knowing whether or not something is going to change. And that changes how they plan and forecast and invest.

Just like other nations, tribes aren't sure where they stand with their most important economic partner. I'm Savannah Peters for Marketplace. And in New York, I'm Sabree Beneshour with the Marketplace Morning Report from APM American Public Media.

Claudette Powell spent a decade in Hollywood building her career before making a radical change. She quit her job, gave away her belongings, and drove across the country to become a nun. I had nothing left. I had turned over my car to the community. I had no more savings, closed my savings account, my checking account, shut down my cards. And that's really scary.

I'm Rima Grace, and this week on This is Uncomfortable, is it possible to find financial security and eval poverty? Listen to This is Uncomfortable wherever you get your podcasts.