This is Gavin Newsom - April 28, 2025


And, I’m Talking To You About Tariffs


Episode Stats


Length

58 minutes

Words per minute

172.73187

Word count

10,118

Sentence count

777

Harmful content

Misogyny

16

sentences flagged

Toxicity

1

sentences flagged

Hate speech

4

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

It s nostalgia overload as Wilmer Valderrama and Freddy Rodriguez welcome another amigo to their podcast, Dos Amigos. Topher Grace stops by the speakeasy for a two-part interview to discuss his career and reminisce about old times.

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.620 It's nostalgia overload as Wilmer Valderrama and Freddy Rodriguez welcome another amigo to their podcast, Dos Amigos.
00:00:07.940 Wilmer's friend and former That 70s Show castmate Topher Grace stops by the speakeasy for a two-part interview to discuss his career and reminisce about old times.
00:00:16.620 We were still in that place of like, what will this experience become? And you go, you're having the best time.
00:00:21.320 But it was like such a perfect golden time.
00:00:24.500 Listen to Dos Amigos on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:00:30.000 Hey, I'm Jay Shetty, and my latest interview is with Michelle Obama.
00:00:34.580 To whom much is given, much is expected.
00:00:37.000 The guilt comes from, am I doing enough?
00:00:39.400 Me, Michelle Obama, to say that to a therapist.
00:00:42.820 So let's unpack that.
00:00:44.120 Having been the first lady of the entire country and representing the country and the world, I couldn't afford to have that kind of disdain.
00:00:53.200 Listen to On Purpose with Jay Shetty on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:01:00.000 The Big Guests continue on Las Culturistas.
00:01:03.660 This week, it's the very funny Amy Poehler.
00:01:06.460 Don't overthink it.
00:01:07.320 They talk water.
00:01:08.240 We did not drink water growing up.
00:01:10.080 Water was not a thing.
00:01:11.360 Parenting.
00:01:11.960 You got teen boys.
00:01:13.220 This is like the black diamond of parenting.
00:01:15.680 And, of course.
00:01:17.120 I don't think so, honey.
00:01:17.960 Horror movies.
00:01:18.920 Okay.
00:01:19.280 Okay?
00:01:19.920 Amy Poehler is on Las Culturistas.
00:01:23.320 The latest episode is out now.
00:01:26.000 Listen to Las Culturistas on the iHeartRadio app or wherever you listen to podcasts.
00:01:31.040 The biggest stars in country music will be taking the stage at our 2025 iHeart Country Festival.
00:01:37.260 Presented by Capital One.
00:01:38.640 Ladies and gentlemen.
00:01:39.520 Brooks and Dunn.
00:01:41.980 Thomas Rhett.
00:01:45.360 Rascal Flatts.
00:01:46.640 Cole Swindell.
00:01:49.340 Sam Hunt.
00:01:50.260 Megan Maroney.
00:01:51.200 Bailey Zimmerman.
00:01:52.160 Nate Smith.
00:01:53.100 Special guest, Dasha.
00:01:54.820 iHeart Country Festival.
00:01:56.340 Stream only on Hulu.
00:01:58.160 Saturday, May 3rd.
00:01:59.240 Starting at 8 p.m. Eastern, 5 Pacific.
00:02:01.780 I'm Clayton English.
00:02:02.800 I'm Greg Glott.
00:02:03.500 And this is season two of the War on Drugs podcast.
00:02:06.140 Yes, sir.
00:02:06.620 Last year, a lot of the problems of the drug war.
00:02:08.860 This year, a lot of the biggest names in music and sports.
00:02:13.060 This is kind of star-studded a little bit, man.
00:02:15.180 We met them at their homes.
00:02:16.740 We met them at their recording studios.
00:02:18.880 Stories matter, and it brings a face to it.
00:02:21.040 It makes it real.
00:02:21.820 It really does.
00:02:22.860 It makes it real.
00:02:24.020 Listen to new episodes of the War on Drugs podcast season two on the iHeartRadio app,
00:02:28.940 Apple Podcasts, or wherever you get your podcasts.
00:02:34.060 So the International Monetary Fund just announced that California is the fourth largest economy
00:02:39.300 in the world.
00:02:40.620 Only Germany and China and the United States have a larger economic output than the state
00:02:46.520 of California.
00:02:47.520 That's the good news.
00:02:48.500 The bad news is there's no state in America that is more impacted by uncertainty and these
00:02:54.560 tariffs imposed unilaterally by Donald Trump and the Trump administration.
00:03:00.000 The impacts of that, of course, are felt.
00:03:02.260 Small businesses, medium-sized, large businesses, consumers, as well as supply chains, not just in
00:03:08.680 our state, but all across this country and around the world.
00:03:12.080 So today, we'll be exploring the impacts, real-life impacts on real people, impacts in states large
00:03:19.340 and small from Montana to Minnesota to here in the great state of California.
00:03:24.800 Tune in to this live program on the impacts of Donald Trump's tariffs in America.
00:03:30.540 This is Gavin Newsom.
00:03:33.240 Let's Talk Tariffs.
00:03:35.700 Hey, Beth.
00:03:37.200 I am trying to get my phone turned off.
00:03:39.100 I just got this phone.
00:03:39.900 I don't know if I can do it.
00:03:41.100 What is it, Android or an iPhone?
00:03:43.500 It's an iPhone, but it's the new one.
00:03:45.560 You're good.
00:03:45.900 It's smart to buy it now and not in a few months when it's twice the price.
00:03:49.460 It won't be twice the price.
00:03:50.520 They're exempt from tariffs.
00:03:51.820 That's right, because they made a phone call.
00:03:53.840 Crony capitalism, Beth. 0.55
00:03:55.860 That's a whole other conversation.
00:03:57.560 Beth, thanks for joining us.
00:03:59.080 And you're in Minnesota.
00:04:02.040 Where are you exactly in Minnesota?
00:04:04.160 I am in Southeast Minnesota, Zumbroda, 50 minutes south of the Twin Cities.
00:04:09.360 And tell us a little bit about your business and when you started it and the impacts of these tariffs.
00:04:14.120 Yeah, I started my business eight years ago, right after my son was born.
00:04:17.020 I had an idea for a baby product that solves a problem all new parents have of babies just dropping and throwing all their stuff. 0.98
00:04:23.920 I made what I now know to be a prototype for myself and one of my friends who had a baby.
00:04:29.080 And she forgot it and said, you should make this thing for real.
00:04:32.460 Because I didn't realize how awful it was until I didn't have your mat thingy.
00:04:36.520 So I invented the Busy Baby Mat.
00:04:38.040 It's just a silicone placemat that suctions to the high chair and has tethers that you can use to attach babies things.
00:04:44.760 Since that time, eight years ago, I was able to go on Shark Tank and show the world my invention.
00:04:53.020 And from that, I was able to tell my brother to quit his job and join me in the business.
00:04:58.820 And the two of us have expanded the product line now to eight products that all have the same mission, keep baby things within reach off the ground at home and on the go.
00:05:07.200 I love it.
00:05:07.700 And you source your products from where?
00:05:10.000 Where do you get the materials?
00:05:11.540 Where do you get most of your supply?
00:05:13.280 Yeah, we are 100% in China.
00:05:15.520 100%.
00:05:15.880 And did you look around?
00:05:17.380 I mean, was it China first or it's just where it's sort of the dominant manufacturing occurs?
00:05:22.480 No, we actually tried for a year and a half to manufacture in the U.S.
00:05:25.780 And there's a lot of obstacles to that.
00:05:27.700 One is the raw material is not sourced in the U.S., so that has to be imported.
00:05:32.200 We learned this morning, we've been continuing to find ways to manufacture in the U.S.
00:05:37.040 and had a great meeting this morning with a silicone manufacturer here in New York.
00:05:41.740 And we're still learning more.
00:05:43.900 It's still not viable for us.
00:05:45.840 However, we're continuing to try.
00:05:47.620 But the main obstacle is when you have a startup, when you are brand new, we're not making 20,000 units.
00:05:54.480 We're not making 200,000 units or many companies a million units.
00:05:58.180 I was trying to get 2,000 units because this was a product that never existed before.
00:06:03.700 I didn't even know if people were going to buy this item.
00:06:06.880 I knew it was a good idea, but I didn't know if my fellow Americans would think it was a good idea.
00:06:12.560 So there were no American factories that were willing and able to do this project on such a small scale to start.
00:06:19.080 So we did have to start in China.
00:06:20.580 They were willing to do that with us.
00:06:23.560 And so the impacts are immediate, the 145% tariffs.
00:06:27.360 I mean, what does that mean?
00:06:29.400 I mean, is there sort of a dollar figure?
00:06:31.480 Do you recall the first invoice purchase order came back and looked at that delta?
00:06:37.080 And how did you respond?
00:06:38.940 You know, it's more immediate than that.
00:06:40.460 I could literally lose my home in less than three months.
00:06:43.780 So I'll walk you through that real quick.
00:06:47.060 This last six months has been amazing for us.
00:06:49.580 I got a contract with Walmart.
00:06:51.140 I got a contract with Target.
00:06:52.360 We're in both stores now.
00:06:54.860 Minnesota awarded me SBA Small Business Person of the Year.
00:06:59.160 It's been a really sunshiny last six months.
00:07:02.400 I booked my flight with my eight-year-old son to take him to D.C. to get this award on May 5th.
00:07:07.160 And then nine days later, as my products were two days shy of being picked up to put on a container to come to the U.S., these tariffs came out.
00:07:18.160 The announcement came out.
00:07:19.820 So what I was expecting to pay $20,000, maybe $30,000 worth of tariffs, that's what I budgeted for, now is going to cost me $230,000 to bring into our country.
00:07:30.400 I have maybe two months' worth of inventory left in my warehouse here.
00:07:35.840 And when that is gone, I have no more revenue.
00:07:38.180 I have no money coming in to pay my employees.
00:07:40.340 I have no money coming in to pay my bills.
00:07:43.160 The other American businesses that I support through my company, my marketing teams, my bookkeeping, my accounting, everyone who helps me run this business, all American companies, my transportation team that was going to bring that container to me.
00:07:58.080 I can't pay any of them anymore.
00:08:01.340 And the worst thing is I can't pay my loan.
00:08:03.980 And when I got the contracts for Target and Walmart, I took a big business risk.
00:08:09.300 And a lot of us small businesses do this.
00:08:11.320 I leveraged my home to be able to buy the inventory to support these contracts because that was the next big milestone step in our business.
00:08:18.880 And now I am at grave danger of not being able to get my products here, not being able to continue to sell and have the cash flow that I've counted on, and not be able to pay on those loans, which means I could lose my house where my children live and my ability to keep them safe and feed them.
00:08:41.420 And that's how real this is for me in this moment.
00:08:44.700 So Beth, I mean, boy, I mean, you paint the ultimate picture.
00:08:49.100 I mean, just the deep reality and, you know, and the fact that it was because of your kids that inspired this business in the first place.
00:08:57.040 And now your home is at risk.
00:08:59.140 Everything about that is an extraordinary picture of the pain and anxiety that you're going through.
00:09:05.880 I mean, and forgive me, I mean, the options for you are what then right now?
00:09:11.720 Do you call Walmart back in Target and you say, can you help?
00:09:16.560 Are there all, is there a strategy there?
00:09:19.180 So they float, you know, 90 day invoices or something.
00:09:22.680 I mean, is there a strategy that you can see an alternative if this continues?
00:09:27.620 Right now with those retailers, I actually have their inventory here.
00:09:30.840 That's why I had to take that big risk early on was you have to order the products in bulk so that I have them here.
00:09:37.140 So every week when they place their order, I have something to send them.
00:09:40.380 So currently their product is here.
00:09:41.980 That should support us six months with those retailers.
00:09:44.560 I did have the opportunity to expand.
00:09:46.960 Walmart wanted to take on another product this year in November.
00:09:49.740 I had to call my buyer and say, I don't know if I can do that right now.
00:09:53.920 As of right now, I cannot add another item.
00:09:56.040 I cannot expand.
00:09:56.880 And because of the situation we're in, if I can't get my products here, I'm going to have to just sell the products that I have set aside for Target and Walmart just to get some revenue in the door to keep paying my employees.
00:10:10.560 So Walmart's been great.
00:10:12.480 They have offered to, you know, let's just see how this goes.
00:10:15.520 We'll be patient.
00:10:16.680 You know, they're not going to push the timelines that normally they're very strict to with suppliers.
00:10:21.760 Let's just kind of see how this goes for a little bit.
00:10:23.840 And, you know, they kind of said, we got you.
00:10:26.140 We'll figure it out.
00:10:27.000 So what did you, and I'm curious, just, you know, and I don't mean this to be political, but when Trump was elected, he talked about these tariffs on China.
00:10:38.100 Obviously, his first term, he advanced tariffs on China.
00:10:44.020 So you must have anticipated something.
00:10:46.560 But did this come as a complete shock how quickly this happened, the level of the tariff, meaning how large it was?
00:10:52.600 Give me a sense of how you prepared a little bit over the course last few months.
00:10:56.960 Yeah.
00:10:57.140 Prior to this administration, we didn't pay a tariff ever.
00:10:59.820 In my eight years in business, we've never paid a tariff.
00:11:02.120 We pay taxes.
00:11:02.840 We pay duty.
00:11:03.720 We've never paid a tariff for baby items.
00:11:06.580 When the administration came in, knowing that they had talked about bringing in tariffs, we expected a reasonable tariff, 20 to maybe 30%.
00:11:13.580 And we looked at our numbers and decided we can support that.
00:11:17.300 It's going to be tough, but we can stay alive and support that.
00:11:20.960 We budgeted for that.
00:11:22.820 We did not budget for 145%.
00:11:25.380 No.
00:11:25.960 I mean, no one can.
00:11:27.740 No one can.
00:11:28.980 Well, Beth, I can't impress upon you how grateful I am that you had the courage to come on the show.
00:11:34.640 And thank you for showing up, not just for yourself and your family, for your eight-year-old and your brother and your employees, but for others in your circumstance and your position.
00:11:45.700 I think, you know, all of us out here in California, we're not only rooting for you, we have your back.
00:11:50.680 We initiated a lawsuit to push back against the Trump administration.
00:11:54.840 I mean, even on the conservative side, the Koch brothers are aligned in that as it relates to how this unilateral action by Donald Trump is simply illegal.
00:12:07.020 And so we're asserting ourselves very aggressively in that space so you can get some clarity.
00:12:12.060 But I'm curious, just, you know, as you look out over the course of the next days and weeks with all that anxiety in your house looming over this conversation, I mean, you got a week or how many weeks?
00:12:24.500 How many months do you think you can hold on with this level of uncertainty before you just have to make a real decision that may be sort of a closing up shop, so to speak?
00:12:34.400 There's no closing up shop for me.
00:12:36.000 I am a 10-year Army veteran.
00:12:37.840 I am not a quitter.
00:12:38.900 I am one who adapts and overcomes.
00:12:41.080 We've got about two weeks until we need to make critical decisions where we now out, we'd sell to other countries.
00:12:48.400 Babies are everywhere.
00:12:49.420 We've lined up some distribution in Australia, in Dubai, in South Korea, in Canada, that if we don't have a resolution in two weeks where we can bring our products to the U.S. and sell to our fellow Americans, then we're going to have to, you know, make that decision to sell outside of our country, which is going to be much more difficult for us.
00:13:11.220 It's all unknown to me.
00:13:12.520 I've had to learn this business from scratch, and now I need to learn international distribution like this.
00:13:17.060 But I'm up for the challenge if I have to.
00:13:20.660 But what I really need is I need our representatives to stand up for us and stand up for Americans.
00:13:29.620 In my district, I have a Republican congressman who will not even talk to me.
00:13:35.020 And I was at, I just watched your podcast with my governor that you recently did, and I was actually at the Capitol this week for Governor Walz's State of the State address.
00:13:47.880 And what I saw broke my heart and has me just feeling so depressed because we need our politicians to stand up for Americans.
00:14:01.640 When Walz was talking about the achievements of our state in the last year, and one of them in Minnesota is free breakfast and free lunch for our students because science has shown well-fed kids have better outcomes.
00:14:12.460 This is a great thing.
00:14:14.420 One half of the room was standing and clapping. 0.95
00:14:16.600 The other half of the room was sitting cross-armed with ugly faces.
00:14:19.460 And I saw the opposite thing on the President's State of the Union address where one side is clapping and the other side is pouting.
00:14:26.720 And right now, we don't need that.
00:14:29.180 We need our representatives to come together for Americans.
00:14:34.640 We need Americans to come together.
00:14:36.420 I am feeling so much hate from my fellow Americans who think that because I make my products in China that I am evil and that I deserve to fail.
00:14:47.520 And where we learn things in our lives, you know, my children, I'm trying to teach them kindness.
00:14:52.000 I'm trying to teach them love.
00:14:53.160 They learn from me.
00:14:54.100 As an adult, we learn from our bosses and from our leaders.
00:14:57.140 And right now, what we're leading, what we're learning from our politicians is to be divided, to be hardline one way or the other.
00:15:04.840 And if I'm on this side, I can't possibly celebrate something accomplished on the other side.
00:15:09.660 And now the American people who should be coming together and supporting one another and loving one another.
00:15:15.500 I had a woman tell me on TikTok that I am going to fail and I deserve it. 1.00
00:15:20.340 No one deserves to fail.
00:15:22.100 No one deserves to lose their house, the roof over their children's home.
00:15:25.400 No one.
00:15:26.780 And so, you know, I need our politicians to come together and support the Americans and stop fighting each other and work together for the American people.
00:15:37.380 I personally love that in ways you don't even fully perhaps appreciate.
00:15:41.400 My first three guests on this podcast were all conservatives that were all supporters of Trump.
00:15:47.240 And I made exactly the point you just made.
00:15:50.060 At the end of the day, we all want to be protected, connected, respected.
00:15:54.040 We can't continue to continue to talk down to each other, past one another.
00:15:58.060 We're all in this together.
00:15:59.460 We're all better off.
00:16:00.440 We're all better off.
00:16:01.060 So I really appreciate that sentiment.
00:16:03.780 I appreciate you have no, I'm an entrepreneur.
00:16:06.660 I love, love your entrepreneurial passion.
00:16:09.860 The fact you putting everything on the line and putting a human face on this topic is inspiring.
00:16:16.200 And I ain't worried about you failing.
00:16:19.220 You got that.
00:16:20.400 You got that gene.
00:16:21.540 You got that grit that defines the best.
00:16:24.220 So thank you, Beth, for joining us.
00:16:26.160 Yeah.
00:16:26.440 Thanks for letting me use my voice to stand up for small businesses.
00:16:29.620 You're here.
00:16:30.280 We appreciate you.
00:16:31.140 It's nostalgia overload as Wilmer Valderrama and Freddy Rodriguez welcome another amigo to their podcast, Dos Amigos.
00:16:42.140 Wilmer's friend and former That 70s Show castmate, Topher Grace, stops by the speakeasy for a two-part interview to discuss his career and reminisce about old times.
00:16:50.840 We were still in that place of like, what will this experience become?
00:16:53.340 And you go, you're having the best time.
00:16:54.680 But it was like such a perfect golden time.
00:16:58.780 Listen to Dos Amigos on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:17:04.480 The big guests continue on Las Culturistas.
00:17:07.780 This week, it's the very funny Amy Poehler.
00:17:10.580 Don't overthink it.
00:17:11.460 They talk water.
00:17:12.380 We did not drink water growing up.
00:17:14.220 Water was not a thing.
00:17:15.500 Parenting.
00:17:16.080 You got teen boys.
00:17:17.340 This is like the black diamond of parenting.
00:17:19.820 And of course.
00:17:21.240 I don't think so, honey.
00:17:22.120 Horror movies.
00:17:23.060 Okay.
00:17:23.400 Okay?
00:17:24.060 Amy Poehler is on Las Cultur.
00:17:27.400 The latest episode is out now.
00:17:30.120 Listen to Las Culturistas on the iHeartRadio app or wherever you listen to podcasts.
00:17:37.980 The number one hit true crime podcast, The Girlfriends, is back with something new, The Girlfriends Spotlight.
00:17:44.800 Our first two series introduce you to an incredible gang of women who teamed up to fight injustice, 0.99
00:17:52.740 showing just how powerful sisterly solidarity can be.
00:17:56.220 We're keeping this mission alive with The Girlfriends Spotlight. 0.75
00:18:00.240 Each week, a different woman sits down with me, Anna Sinfield, 0.88
00:18:03.860 to share their incredible story of triumph over adversity.
00:18:08.080 Like Luanne, who was raised in a secretive religious community.
00:18:11.480 Do I want my freedom or do I want my family?
00:18:14.980 And found a way to escape.
00:18:16.520 When she said, you know you can leave, right?
00:18:19.260 It was a light bulb.
00:18:20.660 And now helps other women get out too. 1.00
00:18:23.140 I loved my girls.
00:18:24.520 I still love my girls.
00:18:25.740 So come and join our girl gang. 1.00
00:18:30.060 Listen to The Girlfriends Spotlight on the iHeartRadio app,
00:18:33.880 Apple Podcasts, or wherever you get your podcasts.
00:18:36.680 That's the fun part about being an artist, that you need to have the patience for finding your pen.
00:18:48.700 I'm La Gata, the culture's favorite reggaeton historian and musicologa.
00:18:52.560 On an episode of my show, The Reggaeton Con La Gata Podcast,
00:18:55.860 I sit down with Bodhi, a Boricua reggaetonera, 0.79
00:18:58.820 who's demanding her place in the male-dominated music industry. 1.00
00:19:01.720 That's the game, like, who stays and believes, you know?
00:19:04.320 Listen to Reggaeton Con La Gata on America's number one podcast network, iHeart.
00:19:09.200 Follow Reggaeton Con La Gata and start listening on the free iHeartRadio app today.
00:19:14.240 And the dream season is now complete.
00:19:17.020 The Golden State Warriors are the 2015 NBA champions.
00:19:20.560 On the new limited podcast series, Dub Dynasty,
00:19:23.100 it's been 10 years since their shocking run to a championship.
00:19:26.560 We examine the controversial move that made it possible.
00:19:29.580 It's never a great conversation as a player when you hear that you're being benched.
00:19:33.400 For the entire behind-the-scenes story of Golden State's incredible 10-year run,
00:19:38.060 listen to Dub Dynasty on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:19:49.060 Hey, Jennifer.
00:19:50.360 Good morning, Governor.
00:19:51.900 Where are you? What's that background? I love it.
00:19:54.280 Oh, fabulous. I'm in my restaurant.
00:19:56.360 I live and own and operate a restaurant in Crescent City, California,
00:20:00.940 which is up in Del Norte County.
00:20:02.960 I believe you visited last, about a year ago up in this region.
00:20:06.180 I used to go up there as a kid with my father.
00:20:09.020 And one of the great gifts last year is bringing my four kids up there
00:20:13.880 and walking in the same footsteps as I walked as a young child.
00:20:18.480 There are a few places, anyone listening, there are a few places on planet Earth
00:20:23.220 that are more spectacular than where you operate your restaurant.
00:20:28.420 The absolute physical beauty is extraordinary.
00:20:32.580 And so I love it up there and I appreciate you're running a restaurant up there,
00:20:37.400 which is in and of itself amazing and remarkable.
00:20:40.980 And I imagine with all of the uncertainty and announcements,
00:20:44.840 and we just saw some new tourism numbers already coming in that show a decline in tourism
00:20:51.780 across our state, that these tariffs have had an impact on your business.
00:21:00.160 Yes. So in the area, just so the listeners know where I live,
00:21:04.940 we're up at the very top coastal corner of California,
00:21:08.100 extremely remote, extremely rugged, and rural, of course.
00:21:13.800 And this area is historically economically depressed.
00:21:17.120 We get injections of money into this area primarily through tourism.
00:21:23.320 It is one of the driving forces.
00:21:25.060 And so most of the businesses in this entire county get, you know,
00:21:30.700 we have booming summers where our population with tourism increases exponentially.
00:21:36.220 Our town population is only 7,000.
00:21:39.680 The entire county population is 27,000.
00:21:43.120 I mean, very sparsely populated.
00:21:45.220 We have a lot of trees and rivers, not a lot of people.
00:21:48.200 And in the summer, in July, our town population can go up to 30,000
00:21:52.880 with people coming to explore the beaches and so forth.
00:21:56.700 So those tourism dollars are what keep this local economy going primarily.
00:22:01.500 And every business is affected positively by the influx of tourism.
00:22:07.240 My demographic, you know, we're a small restaurant.
00:22:10.600 We're right on the beach.
00:22:11.760 We have incredible local support.
00:22:13.840 Our local community really, they're here for us and we're here for them.
00:22:17.920 But there just aren't enough people locally to sustain all of our restaurants and hotels and so forth.
00:22:24.320 So that influx in the summer keeps us flowing all year, even though it's only, you know, a part of the year.
00:22:32.600 And the tourism, you know, we're expecting a 29% decrease in international tourism.
00:22:38.880 In the summertime, Governor, my demographic is between 75% and 90% tourists visiting my restaurant.
00:22:44.980 And that's not just my restaurant.
00:22:46.380 Those are the numbers I have real, you know, tangibility in.
00:22:50.020 But it's every restaurant in this area.
00:22:51.820 And when we take up to 90% of my cash inflow, decrease it by about 30% due to specifically and directly because of the tariffs, that's something that, you know, we're having trouble anticipating how we're going to navigate that.
00:23:10.800 And the other part of that, of course, is cost of goods and services.
00:23:14.500 We run a New Orleans, you see the sign behind me here, New Orleans, Cajun and Creole style restaurant.
00:23:19.640 So the bulk of my menu, we make everything from scratch.
00:23:23.080 So we're using, you know, whole onions, tomatoes, spices, and then a lot of seafood.
00:23:28.360 And shrimp is expected to go up.
00:23:30.580 We get a farm report forecast from our food distributor.
00:23:33.640 Shrimp is expected to increase up to 46% directly because of tariffs.
00:23:39.860 Most of my menu, we can expect to go up about 25%.
00:23:43.180 This is tomatoes, onions, garlic, spices, just everyday things.
00:23:46.920 And while we can adjust, of course, we'll have to increase menu prices as will every restaurant everywhere.
00:23:55.800 So we can increase and that feels, it makes me sad for my local community.
00:24:01.360 But then when we decrease the tourism coming in, it's a double blow and not just a double blow, but has that ripple effect that goes far and wide.
00:24:10.840 If I speak only to my community, this rural community whose sports teams, you know, Little League and the marching band and different things rely on the local businesses supporting them.
00:24:21.180 And this economic impact is so far reaching.
00:24:26.480 I'm an eternal optimist.
00:24:27.820 I'm always someone that figures things out and we look for, you know, solutions.
00:24:31.400 This one is more difficult to see our way through it at this time.
00:24:39.200 I appreciate it.
00:24:39.760 You said two things that are important.
00:24:41.480 You talked about community.
00:24:42.440 I mean, community at the end of the day, it's not something you can manufacture.
00:24:47.380 It's a sense of pride.
00:24:48.660 It's that connection to, as you say, these organizations and your neighbors where magical moments are created in your restaurant and friends and relationships are formed.
00:24:58.600 And you're such a big part of that and a vibrant part of that.
00:25:02.140 But you're also highlighting something that is often overlooked, and that is tariffs impact tourism.
00:25:08.000 And people don't necessarily connect that dot as easily as they should or as consequentially as they must.
00:25:14.940 And when you say 29%, was that an analysis that was done by your regional chamber?
00:25:20.920 Is that on the basis of what you're already seeing in terms of decline of visitorship that you would otherwise expect this time of year?
00:25:27.900 This time of year, we would start seeing a lot of international tourism, a lot of people from Europe in particular.
00:25:33.980 Later in the season, we see a lot more Asian tourists coming in.
00:25:38.600 But, you know, as you said, Redwood National Park, which is here, draws people from all over the world.
00:25:43.560 We have the remaining 1% of old-growth redwood, and that is really something to see.
00:25:48.840 So my 29% came from the economic forecast out of the larger chamber anticipation for how that's going to impact.
00:25:58.460 And, you know, in this rural region of the world, I'm speaking to my county specifically, but this whole north coast is very rural.
00:26:06.140 And so there's about five counties that all see the same economic impact.
00:26:11.220 And it's this entire northwest region of California, Humboldt County, Del Norte County, Mendocino County, Lake County, Trinity.
00:26:20.140 You know, it's a huge portion of the state that is going to feel and reel from the effects of a lack of people wanting to come here directly because of the tariffs.
00:26:28.840 So, Jennifer, you've weathered a lot.
00:26:32.360 You got through COVID, which is extraordinary.
00:26:36.120 You've got that entrepreneurial energy.
00:26:39.640 And as you said yourself, and it's self-evident to anyone listening or watching, you've got such a spirit of positivity.
00:26:47.220 I mean, how do you sort of game this out?
00:26:49.840 I mean, what's the strategy for you?
00:26:52.880 Are you looking at potentially layoffs?
00:26:55.740 You can only pass through so much cost, obviously, on the customer side.
00:27:00.320 If they're not coming in, the fixed cost could devour even any variable menu prices.
00:27:07.360 What's their strategy?
00:27:09.580 How are you gaming this out in the next few months?
00:27:11.740 Yeah.
00:27:12.300 Well, you know, it's a day by day.
00:27:15.240 Where can we pivot?
00:27:16.300 Where can we pivot?
00:27:17.900 Restaurants historically have a very tiny profit margin.
00:27:20.760 And as a small business, as are most businesses in my community, we don't have the luxury that chains have to be able to absorb some of that impact because of other stores.
00:27:32.020 So, how do we navigate that?
00:27:33.640 Of course, you know, increasing as needed.
00:27:38.140 We don't like to do that, but things happen.
00:27:41.220 Cutting costs wherever we can.
00:27:42.880 Cutting labor.
00:27:43.520 You know, we as owner-operators, we work 15 hours a day laboring in our restaurant, and it's a labor of love.
00:27:51.020 I don't say that with anything except gratitude.
00:27:54.000 But there are only so many hours in the day.
00:27:56.560 And so, looking, you know, it adds more work to the people that we employ.
00:28:00.840 So, the way we're navigating this is looking at other ways we can bring money to the restaurant.
00:28:08.340 So, creating other events, you know, community events, things like that.
00:28:12.120 Always looking at what's working and trying to trim what isn't working.
00:28:15.720 Really making our menu hyper-efficient.
00:28:18.020 We got our restaurant two days before the COVID shutdowns.
00:28:20.840 And so, it was an incredible lesson in business management in a very short time.
00:28:29.740 And so, we've learned to pivot.
00:28:31.480 But that's not always easy when things are changing so rapidly.
00:28:35.140 And as we're gearing up for our summer season, you know, it's really just, again, becoming hyper-efficient, hyper-educated.
00:28:42.700 We rely on what's called the farm report forecast.
00:28:45.460 So, we can look at where we can trim costs, you know, at some point in the day.
00:28:52.040 There's only so much we can do.
00:28:53.520 And then we just try to ride it out with the support of our, you know, our community.
00:28:59.720 Well, I appreciate.
00:29:00.940 And I appreciate what you're doing, how you are representing not just yourself, but your community and others that are struggling with this new reality as well.
00:29:11.880 And anyone that gets up to Crescent City, and if you haven't been, you got to go, needs to go to your restaurant.
00:29:17.860 What's the name of the restaurant?
00:29:19.360 This is Schmidt's House of Jambalaya.
00:29:21.560 We're right on the beach at South Beach.
00:29:23.420 And it's an extraordinary community.
00:29:26.740 We're very thankful to be part of it.
00:29:28.260 And go up when you're up there and visit and say hello.
00:29:31.120 Really appreciate you taking the time.
00:29:32.540 Thank you for sharing your insight.
00:29:33.700 And thank you for staying the course and being so positive, and we're going to work our tail off to try to curtail the impacts of these tariffs and lack of, I think, understanding of the impacts it's having on people like yourself and communities all throughout this country, but certainly here in the north part of our state.
00:29:51.780 Thank you so much for joining us.
00:29:53.180 Thank you.
00:29:53.460 And I just want to add, you know, I really feel advocated for.
00:29:56.040 I appreciate your leadership.
00:29:57.320 We appreciate your leadership and everything that you're doing as a voice for the people.
00:30:00.940 Thank you so much.
00:30:02.100 I'm grateful.
00:30:02.560 Thank you for joining us.
00:30:04.100 Thank you.
00:30:04.720 Bye-bye.
00:30:08.660 It's nostalgia overload as Wilmer Valderrama and Freddy Rodriguez welcome another amigo to their podcast, Dos Amigos.
00:30:16.000 Wilmer's friend and former That 70s Show castmate Topher Grace stops by the speakeasy for a two-part interview to discuss his career and reminisce about old times.
00:30:24.640 We were still in that place of, like, what will this experience become?
00:30:27.120 And you go, you're having the best time.
00:30:29.300 But it was, like, such a perfect golden time.
00:30:32.560 Listen to Dos Amigos on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:30:37.660 The Big Guests continue on Las Culturistas.
00:30:41.580 This week, it's the very funny Amy Poehler.
00:30:44.380 Don't overthink it.
00:30:45.240 They talk water.
00:30:46.160 We did not drink water growing up.
00:30:48.000 Water was not a thing.
00:30:49.280 Parenting.
00:30:49.880 You got teen boys.
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00:30:53.600 And, of course...
00:30:55.040 I don't think so, honey.
00:30:55.900 Horror movies.
00:30:56.840 Okay.
00:30:57.180 Okay?
00:30:57.820 Amy Poehler is on Las Culturistas.
00:31:01.540 The latest episode is out now.
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00:31:08.180 The number one hit true crime podcast, The Girlfriends, is back with something new, The Girlfriends Spotlight.
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00:32:03.660 Listen to The Girlfriends Spotlight on the iHeartRadio app,
00:32:07.500 Apple Podcasts, or wherever you get your podcasts.
00:32:16.820 That's the fun part about being an artist, that you need to have the patience for finding your hand.
00:32:22.380 I'm La Gata, the culture's favorite reggaeton historian and musicologa.
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00:32:47.060 And the dream season is now complete.
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00:33:11.500 listen to Dub Dynasty on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:33:22.700 How you doing, Governor?
00:33:24.340 I'm good, man.
00:33:25.440 You're in Chino, California, right?
00:33:27.800 Yeah, I live in Orange County, California.
00:33:31.220 My company here is in Chino.
00:33:33.000 We also have a warehouse and location in Amsterdam, in Holland.
00:33:37.000 I love it.
00:33:37.720 And so tell us about your business, the wheelchair business, huh?
00:33:40.280 So we are in the durable medical equipment business, primarily related to wheelchairs and scooters.
00:33:47.440 We provide, you know, the product for people that are either permanently or temporarily disabled,
00:33:53.680 including organizations such as, I think I mentioned on my emails, Steve Gleason Foundation.
00:33:59.680 He was an ex-NFL football player for the New Orleans Saints.
00:34:03.740 So we sell our product.
00:34:05.780 We're a wholesaler.
00:34:06.320 So we wholesale them worldwide.
00:34:09.780 And we've been doing this for quite some time, about eight years.
00:34:13.060 We're a considerably growing company.
00:34:15.400 We typically grow about 200% to 300% per annum.
00:34:18.340 Wow.
00:34:18.820 It's a very expensive business.
00:34:20.360 It's not a business that is for the lighthearted.
00:34:24.440 So it requires quite a bit of capital to operate this kind of company.
00:34:27.680 And you have to have a passion for it, which is something that myself and all of our team
00:34:32.640 members, we have a great passion for what we do.
00:34:36.000 And Joseph, how many countries are you exporting to?
00:34:39.440 How many countries are you working with?
00:34:40.540 So because we have a European operation, we can export to Belgium, Switzerland, Germany, the UK, and, of course, the Netherlands at the moment.
00:34:51.600 And in America, from here, we export to Canada and parts of Mexico and, you know, Puerto Rico, which is still part of us.
00:34:59.920 So what, I mean, so these tariffs are announced.
00:35:03.520 I imagine, you know, you had to anticipate something might happen in this space.
00:35:08.920 Tell me a little bit about that thought process.
00:35:11.680 You know, when Trump gets elected, he was pretty clear that he was going to move in this direction.
00:35:15.460 Did you expect it as quickly?
00:35:17.480 Did you expect it as acutely?
00:35:19.200 How has it impacted your business and your business plan going forward?
00:35:23.780 Yeah, so wonderful question.
00:35:25.340 We did have a feeling that this could happen.
00:35:28.520 And we didn't expect it to be as drastic as it has.
00:35:32.560 And the reason for that is based on the fundamental sort of principle that our industry has been exempt from tariffs since we've had the operation.
00:35:40.360 So even though we expected tariffs to apply, we did not expect that they would be applied to our industry as we've been exempt for all of these years,
00:35:49.220 nor did we expect that if they were going to be applied, that it would be as high as they are.
00:35:53.120 So probably about eight months prior to this, I had set up a separate company prior to the election of Donald Trump.
00:36:03.840 We had set up a separate company with the idea that we would manufacture our own products within the U.S.
00:36:09.920 And so we started discussing things with even Chinese partners, Vietnamese partners, Mexico.
00:36:17.100 I went down to Mexico many times to set up a Micheladora down there, thinking that might work.
00:36:21.300 Went to Texas, went to various states.
00:36:24.200 What we realized, Governor, is that, one, the cost of operating in America is still extremely expensive, number one.
00:36:31.620 Number two, securing and obtaining the materials that we require are extremely difficult to find.
00:36:38.060 We might be able to find some metals, some aluminum, but things like carbon fiber or things like lithium-ion batteries,
00:36:44.040 things like technology that goes into our joysticks.
00:36:47.460 You know, we're sort of a highly, you know, automated business to a certain extent that relies on technology.
00:36:53.980 And what we quickly found is that what we required just wasn't available.
00:36:59.880 It wasn't available as we needed it.
00:37:02.100 And we thought, okay, this is probably something that the United States isn't quite ready for as yet.
00:37:09.780 So when, obviously, the tariffs were applied, you know, it drastically affects our ability to trade.
00:37:19.720 And, you know, I mentioned in my email that we're working with quite a large community that is quite vulnerable,
00:37:29.040 whether it's the geriatric community, which someday, as you know, Governor, we live long enough.
00:37:33.280 We might all be in a wheelchair or a scooter.
00:37:37.240 But in addition to that, you know, we deal with, like, the Gleason Foundation, which has, you know, their members are, you know, they have ALS.
00:37:44.260 We work with MS organizations, patients that have Parkinson's, et cetera.
00:37:48.300 So not only are they in a situation health-wise that is not ideal, but many of these folks just don't have the resources, financial resources, to secure the product that we sell.
00:38:02.660 And although we are, we sell our products relatively inexpensively compared to the market, it is still, you know, a necessity for them.
00:38:12.140 And, unfortunately, you know, with the tariffs as they currently stand, you know, it becomes almost an impossibility, to be quite honest.
00:38:24.140 You know, I'll give you a real number.
00:38:26.140 A real number is we had ordered sort of a few containers here recently that we expected to pay about $600,000 for.
00:38:33.180 Well, with the tariffs applied, it's now an additional $830,000 on top of that.
00:38:39.660 And it did.
00:38:40.080 So I just want to make that clear.
00:38:41.720 It's not from $600,000 to $800,000.
00:38:44.560 It's an additional $800,000, more than 100%.
00:38:47.440 That's correct.
00:38:48.260 That's right.
00:38:49.280 And that was most of that product coming from China specifically?
00:38:53.360 That's right.
00:38:54.160 Yeah.
00:38:54.460 Yeah.
00:38:55.060 That's right.
00:38:55.880 So, you know, it's an additional $830,000.
00:38:58.300 So our choices are, and in our industry, we, you know, I'm not a, I'm not backed by private equity.
00:39:06.020 I don't have any VCs behind me.
00:39:07.780 We are, we are operating ourselves.
00:39:10.540 We've grown this company ourselves out of our own resources.
00:39:14.580 So, you know, the idea of paying an additional $830,000 when we don't know if these tariffs are going to change tomorrow, you know the story.
00:39:24.440 It's been up and down.
00:39:25.380 Yes, we're going to reduce tariffs.
00:39:27.220 No, we're not.
00:39:28.300 So it's very unpredictable for myself and other companies in my situation.
00:39:34.780 If we fund that money, you know, obviously we would need to recover it somehow.
00:39:39.560 And unlike a common belief that the exporting company pays for these things, it's just not true.
00:39:46.500 I mean, the, the import for us, we would pay that additional amount and then we would have the decision to make.
00:39:53.520 Do we pass it down to our consumer, which is in our case, our reseller worldwide,
00:39:57.120 or do we absorb the costs?
00:39:59.480 Well, there's no business that I've been in.
00:40:01.300 I mean, you were in the wine business.
00:40:02.320 You know this.
00:40:02.800 There's no way that the company can operate with an additional 145% tariffs.
00:40:08.480 I mean, your net operating income is just not there.
00:40:13.380 So, you know, it's sort of devastating to us on many different levels, but most importantly, on the level of the consumer, particularly ones that we serve.
00:40:22.840 Because, you know, when you do, when we deal with nonprofits, you know, they, they have a limited budget.
00:40:29.920 And so what it now means is that, do they not get the share or did they get, you know, a third or 20% of what they require?
00:40:36.900 So Joseph, I mean, did you end up making the purchase or you just, you know, you just, you're waiting around with all that uncertainty.
00:40:42.840 What'd you do?
00:40:43.500 We wait right now because we have sufficient inventory to cover us for another maybe four months.
00:40:49.740 That's it.
00:40:50.340 But, you know, with lead times, et cetera, we really have to have those containers shipped within the next 15 to 20 days.
00:40:58.580 Otherwise, we're going to run out.
00:41:01.560 So, you know, it's, it's a operating a business, obviously, as you, as you know, this is not always going to be, you know, rosy.
00:41:09.180 If it was, probably everybody would do it.
00:41:11.080 It's not, that's just not the way it works.
00:41:12.520 And you're in a game that's probably even tougher than mine.
00:41:14.620 But, but the reality is that, you know, you have to kind of deal with the cars as they are presented.
00:41:21.100 And right now, I think what is hurting many of us, in addition to the, the tariff is the uncertainty and the, you know, for lack of a better word, the flip-flopping of, is it going away or is it staying?
00:41:34.380 Right.
00:41:34.820 And, and so, you know, we have a real urgency in our industry because of the necessity to satisfy the demand.
00:41:47.460 What do you, Joseph, just out of curiosity and, you know, look, when you put everything on the line, all the risk, you leverage, you talk about how capital intensive, you just prove that point as it relates to, you know, just those kind of, those purchasing orders that you're making and the bet you're placing.
00:42:02.900 But how do you, how do you even talk to your employees?
00:42:06.640 I mean, what, what do you tell these guys?
00:42:08.100 What do you tell your folks around you?
00:42:09.880 And, and as you say, I mean, you talk about the most vulnerable, what you're doing for charities and nonprofits.
00:42:15.900 And I think that really paints a pretty powerful picture.
00:42:19.540 But what, what, what's the anxiety level within the company, within the organization?
00:42:24.760 So we're very transparent.
00:42:26.540 A lot of the guys that, you know, I've owned several companies in my career.
00:42:29.740 In this particular one, I brought in a lot of guys that I've worked with for 18 to 20 years.
00:42:33.900 Um, so they're friends, they're, they're, most of them were either professional athletes or along the lines of playing at university, baseball, football, you name it.
00:42:42.500 So we're all highly competitive and we all, um, our manner of operations, we're very direct in terms of how we speak to each other.
00:42:50.440 So they're well aware.
00:42:52.500 And there was a point that, um, you know, a conversation was had where we said, guys, look, if this, if this is the way it's going to be, uh, I cannot promise everybody's job.
00:43:03.660 It's just not conceivable.
00:43:05.800 Um, let alone my own, let alone my own company, right?
00:43:09.320 Because if these, if this were to carry on, um, you know, for the next 12 months or so, I just can't imagine anybody in our industry that's playing on a level playing field.
00:43:19.360 Would be able to operate.
00:43:21.320 It's just, it's just not possible.
00:43:24.480 So it's a, it's a really concerning thing.
00:43:26.800 And I know I'm taking up airspace here, but if you don't mind me just saying also, um, had we, you know, if we had the infrastructure in America to do this, you know, in terms of what I mentioned earlier, the, the batteries, the, the joysticks, the aluminum, the ability to do this.
00:43:43.420 And we had the resources of being able to kind of, uh, operate this business, which I mean, it's, it's not inexpensive, you know, would require several, several million dollars to operate a manufacturing company.
00:43:55.580 You know, I'm not opposed to that.
00:43:57.220 I'm not opposed to actually trying this out, but I will say this, given my experiences that even if we were to do that, you know, a wheelchair that might cost somebody today, $1,200.
00:44:08.180 Isn't going to cost $1,200 tomorrow.
00:44:11.360 You know, if we're manufacturing this, it's going to be, you know, 24, $2,500.
00:44:16.060 Yep.
00:44:16.640 So the bottom line, I mean, and I appreciate it.
00:44:18.800 At the end of the day, the bottom line is the bottom line.
00:44:21.000 And, and, and, and one has to soberly sort of understand the consequences, the benefits obviously of bringing those supply chains back home, the opportunities and the jobs created in that.
00:44:30.800 But from the consumer perspective, uh, that's a, that's pretty stark, uh, increase, uh, reminder of, of the trade-off as it relates to this.
00:44:40.280 Look, Joseph, I appreciate you painting that picture.
00:44:42.680 Thank you for highlighting, uh, some real world impacts that, that are acute and immediate, and also just the deep uncertainty as we wait day to day.
00:44:51.120 And as you suggest, uh, it's, you know, it changes day to day, the flip-flop, the lack of certainty.
00:44:56.840 And as a business owner myself, and I appreciate that reference, uh, certainty is, is the coin of the realm.
00:45:03.580 At least you can work around that and you can make some decisions.
00:45:07.140 But the inability to make, uh, decisions, uh, is perhaps to me the most stifling and, and I, I think for you, uh, you know, I can't imagine the most alarming part of all of this.
00:45:18.900 Yeah, no doubt.
00:45:19.840 Uh, the uncertainty plays a huge part.
00:45:22.000 And, you know, we, we, we're trying to represent a company that, uh, is American based and grown.
00:45:29.320 And, uh, you know, and we, we, we take great pride in what we do.
00:45:33.180 You know, there's a lot of stories here of individuals that, uh, have family members that require what we do.
00:45:40.000 And it's just extremely frustrating, you know, to sort of, uh, be in a situation where we've grown and developed such a reputable organization and find ourselves in a situation that is completely out of our control.
00:45:54.300 Yeah.
00:45:54.820 You know, it, it, we're really just sort of, we have no control over this portion of what we can do.
00:46:01.720 Well, I appreciate it, but you know what, it's, um, the fact that you're willing to share that story gives you agency, uh, gives people, I think, a deeper understanding of what's at stake and you, and, and thank you, Joseph, as well.
00:46:15.140 You only reinforce the why, the why I'm proud on behalf of you and 40 million of us, uh, California was the first state in the country, uh, to sue the Trump administration as it relates to his authority on these tariffs.
00:46:27.660 And by the way, I am damn confident we're going to win that.
00:46:31.080 And we're going to get clarity on that in the next few weeks.
00:46:33.140 So I really appreciate you willing to share your story.
00:46:35.940 Thanks for all the good work, your remarkable work you're doing, uh, how you're changing lives for your charitable focus, uh, not just for your entrepreneurial spirit.
00:46:44.240 Yeah.
00:46:44.400 Thank you for that.
00:46:45.240 Take care.
00:46:45.720 Thanks so much for joining us.
00:46:47.080 You're welcome.
00:46:47.600 Thank you so much.
00:46:48.560 Appreciate it.
00:46:49.660 Hey, Jennifer.
00:46:50.840 Hi.
00:46:51.400 Hi, Gavin Newsom.
00:46:52.520 How are you doing?
00:46:53.140 I am good where you, you're in the great city of Palm Springs, right?
00:46:58.560 This is correct.
00:46:59.540 This is correct.
00:47:00.760 I love it.
00:47:01.320 And when, I mean, tell me a little bit about your business when you opened it up and how you're feeling about everything right now.
00:47:07.840 Uh, well, thank you.
00:47:09.320 Thank you again for, for taking the time and, uh, allowing us to share what's, what's happening with small business right now.
00:47:15.620 Um, so my name is Jennifer Gold and I'm the founder and curator of Grounded Body Works,
00:47:21.860 a boutique wellness spa based in Palm Springs.
00:47:25.620 Um, we're celebrating our 13th year this summer.
00:47:30.020 And, uh, when I started, there was just me and one of my massage therapists that I, I actually taught massage.
00:47:37.600 I was the director at a local school for a minute and, uh, hired her and it was just us for a while.
00:47:43.920 Uh, and, uh, now I have a, a team of 12 and, uh, goodness, it's just been, it's been kind of a whirlwind.
00:47:54.160 I've learned a lot leading up to COVID.
00:47:57.160 I think under, uh, uh, goodness, Obama, um, our business was growing, growing steadily year after year.
00:48:04.240 Um, and then the pandemic hit and that momentum was just gone overnight.
00:48:09.120 Yeah.
00:48:09.840 You know, and, and if I could take a moment to just personally, thank you for your support during COVID.
00:48:15.200 Um, I, I took the grant.
00:48:17.500 I'm, I have the EDA loan.
00:48:19.280 I'm currently repaying, made the difference between closing our doors and surviving.
00:48:23.480 So thank you.
00:48:24.660 No, thank you for that.
00:48:25.840 So is this, I mean, Jennifer right now, I mean, forgive me for cutting you off because I think it's an interesting,
00:48:29.740 I mean, the fact that you went through that experience and, and, and the trauma, um, personally,
00:48:35.740 professionally, uh, as it relates to COVID, how is this moment?
00:48:40.960 Is it bring back those memories?
00:48:43.260 Is it, is it on par with that?
00:48:45.800 The uncertainty, the impacts to your business?
00:48:48.520 It's definitely uncertain.
00:48:50.300 Um, the struggles are very real.
00:48:52.400 They're still very real.
00:48:53.440 I can't believe it's been five years.
00:48:55.420 You know, we're still recovering for many of us.
00:48:57.940 It's fragile and these tariffs can be the thing that pushes us over the edge.
00:49:02.380 And how are the tariffs directly impacting, uh, the work there is, is, I imagine, I mean,
00:49:07.680 we've, we've been reading a lot, uh, all over the national news, Palm Springs reaching out to
00:49:12.540 Canadians, 2 million Canadians last year visited the state of California, Palm Springs, one of
00:49:18.100 the biggest beneficiaries of, uh, of the, uh, number of tourist dollars spent, uh, is that
00:49:23.920 had an impact is, is it more direct in terms of supply chain and materials that you're using
00:49:29.940 at the spot?
00:49:30.600 Give us a sense, paint the picture.
00:49:32.900 Sure.
00:49:33.120 Sure.
00:49:33.400 So there's, I'd say there's like three, three caveats that are, uh, that I'm experiencing
00:49:40.340 right now, uh, personally.
00:49:41.900 And then with my business, I'm just on a spending freeze.
00:49:45.660 Uh, we're afraid I'm, I'm afraid to invest as a business owner.
00:49:49.080 I've paused all major purchases.
00:49:51.540 Um, I want to invest in growth, but right now then uncertainty is just too great.
00:49:56.620 Um, our customers are also hesitant, even in an affluent area like Palm Springs, uh, people
00:50:02.500 are pulling back on non-essential spending that slows everyone down.
00:50:06.840 Um, I'd love to partner with Hydrafacial. 1.00
00:50:09.400 It's a long beach.
00:50:10.620 Um, so I'm from Compton.
00:50:12.740 Uh, my family's from Quebec.
00:50:14.360 So, you know, what, what I do with Grounded is I, I, I promote all these local businesses
00:50:20.460 from LA, where I'm from to all the way to Quebec, where my family's from.
00:50:24.760 Um, I'd love to bring in Hydrafacial, this California brand and manufacturer, but the,
00:50:29.440 the machine costs over $30,000.
00:50:31.900 I, I, I'm not about to invest in that right now, you know?
00:50:37.620 Um, and then I'd say the next thing would be, um, our vendors, even, uh, like I, our skincare
00:50:44.360 line is Osea in Malibu.
00:50:46.720 I'm sure you've heard of them.
00:50:48.020 Women owned, uh, brand based in California, their ingredients and operations are all local,
00:50:53.600 but that doesn't make them immune.
00:50:56.020 Um, if tariffs increase the cost of imported packaging materials, glass, you know, they have
00:51:01.800 glass, but there's pumps, there's lids.
00:51:04.580 It affects pricing that increase comes to me and then it's passed on to my customers.
00:51:10.580 Um, even if we're doing everything right and we shop local, we support California companies
00:51:15.920 staying sustainable as we can afford to, to do that.
00:51:19.720 Uh, but local, I'm sorry, global policy is still hitting, hitting our bottom line.
00:51:25.580 Um, and third, it's been a very emotional two months, um, but a month and a half saying goodbye
00:51:33.440 to our Canadians.
00:51:35.140 Um, you are correct.
00:51:36.720 Uh, Ron DeHart, our mayor just sent out an email addressing this.
00:51:41.280 Um, Palm Springs is amazing.
00:51:43.100 They've been really trying to help support Canada.
00:51:45.680 They just hung all these banners downtown just to show our support.
00:51:49.140 There's all these Canadian flags.
00:51:50.680 It's, it's beautiful, but it's been very emotional.
00:51:54.100 Every spring we say goodbye to our Canadian visitors.
00:51:56.760 This year, many have said goodbye for good.
00:51:58.740 Some have sold their homes.
00:52:01.000 They're not rebooking.
00:52:02.440 These guests have supported us for years, including through the pandemic.
00:52:07.080 Um, their absence this year is emotional and financially crushing.
00:52:12.080 Uh, they, they spend, they bring in 302 million, uh, just to Palm Springs or the Coachella Valley alone.
00:52:20.300 Um, Palm Springs is deeply tied to Canadian tourism.
00:52:23.720 And if we lose our small businesses and are left with only big box stores, we'll lose the
00:52:28.860 very character of, of our city.
00:52:31.320 I mean, we're, we're still recovering, you know?
00:52:34.140 Wow.
00:52:34.640 Thank you for painting that picture, Jennifer.
00:52:36.460 It's, uh, you know, in California, I, we, we're launching a, a multimillion dollar campaign
00:52:42.020 to encourage Canadians to come back to Canada campaign.
00:52:45.680 We announced a few weeks ago saying, you know, California wouldn't be California without
00:52:50.580 Canadians, but it's your, the, the response to it was interesting and the people are very
00:52:54.420 raw and emotional about it.
00:52:56.520 And even though California is not, you know, it's not, it may be the most untrumped state
00:53:01.440 in America, uh, their state of mind is still a tremendous animus from the damage we've done
00:53:07.720 to the relationships up North.
00:53:09.060 And I imagine just for you, the emotion is extended to just family you have up in Quebec,
00:53:14.040 right?
00:53:15.340 I have one aunt, uh, left up there. 0.50
00:53:17.460 Um, the rest of the family moved to the States in the seventies, um, and she just couldn't
00:53:23.000 leave her horses day. 1.00
00:53:24.240 So she's, she's still up there, but, uh, it's really, you know, my vendor friends were, we're
00:53:30.320 communicating, um, we're trying, we're trying to make it work.
00:53:33.780 I only have two Canadian vendors right now.
00:53:36.580 Um, but I, if I may give you an example, um, our nail.
00:53:41.520 So I run a spa, a boutique spa in Palm Springs.
00:53:45.000 Um, um, and my name are, we offer nail services and our vendor for our nail, uh, products are
00:53:52.360 in LA it's called coat.
00:53:54.240 Um, and she's redoing her line.
00:53:57.360 A lot of the packaging is from China.
00:53:59.740 So because of these tariffs, I've been rethinking, do I stick with coat, you know?
00:54:04.400 Uh, and then, uh, there's a line up in Canada called be kind and they have a nail line and
00:54:11.920 it's made in Canada.
00:54:13.040 But again, I'm, I'm, I just feel like I'm going to lose, lose, you know, just trying to
00:54:18.160 stay local, but make it all work.
00:54:21.240 Well, Jennifer, I really appreciate you putting a human face, your, your own, um, humanity
00:54:26.820 behind this.
00:54:27.400 And I extend that humanity quite literally your support for others, uh, in the region, other
00:54:32.740 small businesses.
00:54:33.500 And I think it's so insightful and helpful that as you say, even locally made products
00:54:40.020 have packaging components and other component parts that they have to import.
00:54:44.880 And those costs are burdens that ultimately will be passed on to you and, and, and potentially
00:54:50.640 your customers.
00:54:51.300 And it's, it's such a helpful, I think, insight to understand the impacts, the cascading impacts
00:54:57.080 of these tariffs, including obviously the tourism component, uh, that compounds that.
00:55:01.960 Uh, but what you said, I think is the most damning is just the level of anxiety that you
00:55:06.700 have to personally go through, professionally go through.
00:55:09.820 And as a consequence of that anxiety, um, and unwillingness to make, uh, uh, big, bold
00:55:16.000 decisions, which are decisions often you have to make with some confidence about the future
00:55:20.700 and what it will hold.
00:55:22.160 Um, and so thank you for, for sharing your story.
00:55:25.240 Thank you for, um, for weathering a lot of storms.
00:55:29.120 I'm confident you'll continue to, and I think it's a big help for those watching and those
00:55:33.660 listening.
00:55:34.300 I appreciate that.
00:55:35.140 Thank you again for all your support.
00:55:37.160 Couldn't have chosen a better state to be in right now.
00:55:40.760 So thank you again.
00:55:42.520 We're going to, we're, we're going to take it to the Trump administration and we're going
00:55:45.800 to beat back these tariffs.
00:55:47.080 You watch, we have our day in court quite literally coming up very shortly.
00:55:51.700 Jennifer, thanks so much for joining us.
00:55:53.400 Thanks so much.
00:55:54.280 Thank you very much.
00:56:04.140 It's nostalgia overload as Wilmer Valderrama and Freddie Rodriguez welcome another amigo
00:56:09.060 to their podcast, Dos Amigos.
00:56:11.400 Wilmer's friend and former That 70s Show castmate Topher Grace stops by the speakeasy for a two-part
00:56:16.600 interview to discuss his career and reminisce about old times.
00:56:20.020 We were still in that place of like, what will this experience become?
00:56:22.460 And you go, you're having the best time.
00:56:23.860 Yeah, but it was like such a perfect golden time.
00:56:28.160 Listen to Dos Amigos on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:56:33.240 Hey, I'm Jay Shetty, and my latest interview is with Michelle Obama.
00:56:38.080 To whom much is given, much is expected.
00:56:40.460 The guilt comes from, am I doing enough?
00:56:42.840 Me, Michelle Obama, to say that to a therapist.
00:56:46.260 So let's unpack that.
00:56:47.340 Having been the first lady of the entire country and representing the country and the world,
00:56:53.080 I couldn't afford to have that kind of disdain.
00:56:56.900 Listen to On Purpose with Jay Shetty on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:57:03.240 The Big Guests continue on Las Culturistas.
00:57:07.100 This week, it's the very funny Amy Poehler.
00:57:09.900 Don't overthink it.
00:57:10.780 They talk water.
00:57:11.700 We did not drink water growing up.
00:57:13.540 Water was not a thing.
00:57:14.800 Parenting.
00:57:15.400 You got teen boys.
00:57:16.680 This is like the black diamond of parenting.
00:57:19.140 And of course.
00:57:20.580 I don't think so, honey.
00:57:21.440 Horror movies.
00:57:22.380 Okay.
00:57:22.740 Okay?
00:57:23.360 Amy Poehler is on Las Culturistas.
00:57:27.060 The latest episode is out now.
00:57:29.180 Listen to Las Culturistas on the iHeartRadio app or wherever you listen to podcasts.
00:57:34.640 The biggest stars in country music will be taking the stage at our 2025 iHeartCountry Festival.
00:57:40.720 Presented by Capital One.
00:57:42.060 Ladies and gentlemen.
00:57:42.960 Brooks and Dunn.
00:57:45.680 Thomas Rhett.
00:57:48.920 Rascal Flatts.
00:57:51.580 Cole Swindell.
00:57:52.780 Sam Hunt.
00:57:53.700 Megan Maroney.
00:57:54.640 Bailey Zimmerman.
00:57:55.600 Nate Smith.
00:57:56.540 Special guest, Dasha.
00:57:58.040 Hi-Heart Country Festival.
00:57:59.640 That's your...
00:58:00.000 Stream only on Hulu.
00:58:01.600 Saturday, May 3rd.
00:58:02.680 Starting at 8 p.m. Eastern, 5 Pacific.
00:58:05.240 I'm Clayton English.
00:58:06.240 I'm Greg Glott.
00:58:06.940 And this is season two of the War on Drugs podcast.
00:58:09.560 Yes, sir.
00:58:10.060 Last year, a lot of the problems of the drug war.
00:58:12.460 This year, a lot of the biggest names in music and sports.
00:58:16.520 This is kind of star-studded a little bit, man.
00:58:18.740 We met them at their homes.
00:58:20.160 We met them at their recording studios.
00:58:22.360 Stories matter and it brings a face to them.
00:58:24.480 It makes it real.
00:58:25.260 It really does.
00:58:26.300 It makes it real.
00:58:27.120 Listen to new episodes of the War on Drugs podcast season two
00:58:30.720 on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.