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.
00:00:00.620It's nostalgia overload as Wilmer Valderrama and Freddy Rodriguez welcome another amigo to their podcast, Dos Amigos.
00:00:07.940Wilmer'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.
00:00:16.620We were still in that place of like, what will this experience become? And you go, you're having the best time.
00:00:21.320But it was like such a perfect golden time.
00:00:24.500Listen to Dos Amigos on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:00:30.000Hey, I'm Jay Shetty, and my latest interview is with Michelle Obama.
00:00:34.580To whom much is given, much is expected.
00:00:37.000The guilt comes from, am I doing enough?
00:00:39.400Me, Michelle Obama, to say that to a therapist.
00:00:44.120Having 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.
00:00:53.200Listen to On Purpose with Jay Shetty on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:01:00.000The Big Guests continue on Las Culturistas.
00:01:03.660This week, it's the very funny Amy Poehler.
00:04:38.040It's just a silicone placemat that suctions to the high chair and has tethers that you can use to attach babies things.
00:04:44.760Since that time, eight years ago, I was able to go on Shark Tank and show the world my invention.
00:04:53.020And from that, I was able to tell my brother to quit his job and join me in the business.
00:04:58.820And 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.
00:06:54.860Minnesota awarded me SBA Small Business Person of the Year.
00:06:59.160It's been a really sunshiny last six months.
00:07:02.400I booked my flight with my eight-year-old son to take him to D.C. to get this award on May 5th.
00:07:07.160And 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.
00:07:19.820So 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.
00:07:30.400I have maybe two months' worth of inventory left in my warehouse here.
00:07:35.840And when that is gone, I have no more revenue.
00:07:38.180I have no money coming in to pay my employees.
00:07:40.340I have no money coming in to pay my bills.
00:07:43.160The 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.
00:08:01.340And the worst thing is I can't pay my loan.
00:08:03.980And when I got the contracts for Target and Walmart, I took a big business risk.
00:08:09.300And a lot of us small businesses do this.
00:08:11.320I 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.
00:08:18.880And 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.
00:08:41.420And that's how real this is for me in this moment.
00:08:44.700So Beth, I mean, boy, I mean, you paint the ultimate picture.
00:08:49.100I 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.
00:09:56.880And 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.
00:10:27.000So 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.
00:10:38.100Obviously, his first term, he advanced tariffs on China.
00:10:44.020So you must have anticipated something.
00:10:46.560But did this come as a complete shock how quickly this happened, the level of the tariff, meaning how large it was?
00:10:52.600Give me a sense of how you prepared a little bit over the course last few months.
00:11:28.980Well, Beth, I can't impress upon you how grateful I am that you had the courage to come on the show.
00:11:34.640And 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.
00:11:45.700I think, you know, all of us out here in California, we're not only rooting for you, we have your back.
00:11:50.680We initiated a lawsuit to push back against the Trump administration.
00:11:54.840I 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.
00:12:07.020And so we're asserting ourselves very aggressively in that space so you can get some clarity.
00:12:12.060But 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?
00:12:24.500How 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?
00:12:49.420We'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.
00:13:12.520I've had to learn this business from scratch, and now I need to learn international distribution like this.
00:13:17.060But I'm up for the challenge if I have to.
00:13:20.660But what I really need is I need our representatives to stand up for us and stand up for Americans.
00:13:29.620In my district, I have a Republican congressman who will not even talk to me.
00:13:35.020And 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.
00:13:47.880And what I saw broke my heart and has me just feeling so depressed because we need our politicians to stand up for Americans.
00:14:01.640When 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.
00:14:36.420I 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.
00:14:47.520And where we learn things in our lives, you know, my children, I'm trying to teach them kindness.
00:15:26.780And 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.
00:15:37.380I personally love that in ways you don't even fully perhaps appreciate.
00:15:41.400My first three guests on this podcast were all conservatives that were all supporters of Trump.
00:15:47.240And I made exactly the point you just made.
00:15:50.060At the end of the day, we all want to be protected, connected, respected.
00:15:54.040We can't continue to continue to talk down to each other, past one another.
00:16:31.140It's nostalgia overload as Wilmer Valderrama and Freddy Rodriguez welcome another amigo to their podcast, Dos Amigos.
00:16:42.140Wilmer'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.
00:16:50.840We were still in that place of like, what will this experience become?
00:16:53.340And you go, you're having the best time.
00:16:54.680But it was like such a perfect golden time.
00:16:58.780Listen to Dos Amigos on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:17:04.480The big guests continue on Las Culturistas.
00:17:07.780This week, it's the very funny Amy Poehler.
00:22:46.380Those are the numbers I have real, you know, tangibility in.
00:22:50.020But it's every restaurant in this area.
00:22:51.820And 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.
00:23:10.800And the other part of that, of course, is cost of goods and services.
00:23:14.500We run a New Orleans, you see the sign behind me here, New Orleans, Cajun and Creole style restaurant.
00:23:19.640So the bulk of my menu, we make everything from scratch.
00:23:23.080So we're using, you know, whole onions, tomatoes, spices, and then a lot of seafood.
00:23:30.580We get a farm report forecast from our food distributor.
00:23:33.640Shrimp is expected to increase up to 46% directly because of tariffs.
00:23:39.860Most of my menu, we can expect to go up about 25%.
00:23:43.180This is tomatoes, onions, garlic, spices, just everyday things.
00:23:46.920And while we can adjust, of course, we'll have to increase menu prices as will every restaurant everywhere.
00:23:55.800So we can increase and that feels, it makes me sad for my local community.
00:24:01.360But 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.
00:24:10.840If 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.
00:24:21.180And this economic impact is so far reaching.
00:24:48.660It'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.
00:24:58.600And you're such a big part of that and a vibrant part of that.
00:25:02.140But you're also highlighting something that is often overlooked, and that is tariffs impact tourism.
00:25:08.000And people don't necessarily connect that dot as easily as they should or as consequentially as they must.
00:25:14.940And when you say 29%, was that an analysis that was done by your regional chamber?
00:25:20.920Is 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?
00:25:27.900This time of year, we would start seeing a lot of international tourism, a lot of people from Europe in particular.
00:25:33.980Later in the season, we see a lot more Asian tourists coming in.
00:25:38.600But, you know, as you said, Redwood National Park, which is here, draws people from all over the world.
00:25:43.560We have the remaining 1% of old-growth redwood, and that is really something to see.
00:25:48.840So my 29% came from the economic forecast out of the larger chamber anticipation for how that's going to impact.
00:25:58.460And, you know, in this rural region of the world, I'm speaking to my county specifically, but this whole north coast is very rural.
00:26:06.140And so there's about five counties that all see the same economic impact.
00:26:11.220And it's this entire northwest region of California, Humboldt County, Del Norte County, Mendocino County, Lake County, Trinity.
00:26:20.140You 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.
00:27:17.900Restaurants historically have a very tiny profit margin.
00:27:20.760And 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.
00:29:00.940And 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.
00:29:11.880And anyone that gets up to Crescent City, and if you haven't been, you got to go, needs to go to your restaurant.
00:29:33.700And 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.
00:30:08.660It's nostalgia overload as Wilmer Valderrama and Freddy Rodriguez welcome another amigo to their podcast, Dos Amigos.
00:30:16.000Wilmer'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.
00:30:24.640We were still in that place of, like, what will this experience become?
00:30:27.120And you go, you're having the best time.
00:30:29.300But it was, like, such a perfect golden time.
00:30:32.560Listen to Dos Amigos on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
00:30:37.660The Big Guests continue on Las Culturistas.
00:30:41.580This week, it's the very funny Amy Poehler.
00:34:20.360It's not a business that is for the lighthearted.
00:34:24.440So it requires quite a bit of capital to operate this kind of company.
00:34:27.680And you have to have a passion for it, which is something that myself and all of our team
00:34:32.640members, we have a great passion for what we do.
00:34:36.000And Joseph, how many countries are you exporting to?
00:34:39.440How many countries are you working with?
00:34:40.540So because we have a European operation, we can export to Belgium, Switzerland, Germany, the UK, and, of course, the Netherlands at the moment.
00:34:51.600And in America, from here, we export to Canada and parts of Mexico and, you know, Puerto Rico, which is still part of us.
00:34:59.920So what, I mean, so these tariffs are announced.
00:35:03.520I imagine, you know, you had to anticipate something might happen in this space.
00:35:08.920Tell me a little bit about that thought process.
00:35:11.680You know, when Trump gets elected, he was pretty clear that he was going to move in this direction.
00:35:25.340We did have a feeling that this could happen.
00:35:28.520And we didn't expect it to be as drastic as it has.
00:35:32.560And 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.
00:35:40.360So 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,
00:35:49.220nor did we expect that if they were going to be applied, that it would be as high as they are.
00:35:53.120So probably about eight months prior to this, I had set up a separate company prior to the election of Donald Trump.
00:36:03.840We had set up a separate company with the idea that we would manufacture our own products within the U.S.
00:36:09.920And so we started discussing things with even Chinese partners, Vietnamese partners, Mexico.
00:36:17.100I went down to Mexico many times to set up a Micheladora down there, thinking that might work.
00:36:21.300Went to Texas, went to various states.
00:36:24.200What we realized, Governor, is that, one, the cost of operating in America is still extremely expensive, number one.
00:36:31.620Number two, securing and obtaining the materials that we require are extremely difficult to find.
00:36:38.060We might be able to find some metals, some aluminum, but things like carbon fiber or things like lithium-ion batteries,
00:36:44.040things like technology that goes into our joysticks.
00:36:47.460You know, we're sort of a highly, you know, automated business to a certain extent that relies on technology.
00:36:53.980And what we quickly found is that what we required just wasn't available.
00:37:02.100And we thought, okay, this is probably something that the United States isn't quite ready for as yet.
00:37:09.780So when, obviously, the tariffs were applied, you know, it drastically affects our ability to trade.
00:37:19.720And, you know, I mentioned in my email that we're working with quite a large community that is quite vulnerable,
00:37:29.040whether it's the geriatric community, which someday, as you know, Governor, we live long enough.
00:37:33.280We might all be in a wheelchair or a scooter.
00:37:37.240But 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.
00:37:44.260We work with MS organizations, patients that have Parkinson's, et cetera.
00:37:48.300So 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.
00:38:02.660And although we are, we sell our products relatively inexpensively compared to the market, it is still, you know, a necessity for them.
00:38:12.140And, unfortunately, you know, with the tariffs as they currently stand, you know, it becomes almost an impossibility, to be quite honest.
00:38:24.140You know, I'll give you a real number.
00:38:26.140A real number is we had ordered sort of a few containers here recently that we expected to pay about $600,000 for.
00:38:33.180Well, with the tariffs applied, it's now an additional $830,000 on top of that.
00:39:10.540We've grown this company ourselves out of our own resources.
00:39:14.580So, 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.
00:40:02.800There's no way that the company can operate with an additional 145% tariffs.
00:40:08.480I mean, your net operating income is just not there.
00:40:13.380So, 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.
00:40:22.840Because, you know, when you do, when we deal with nonprofits, you know, they, they have a limited budget.
00:40:29.920And 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?
00:40:36.900So 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.
00:41:01.560So, 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.
00:41:09.180If it was, probably everybody would do it.
00:41:11.080It's not, that's just not the way it works.
00:41:12.520And you're in a game that's probably even tougher than mine.
00:41:14.620But, but the reality is that, you know, you have to kind of deal with the cars as they are presented.
00:41:21.100And 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?
00:41:34.820And, and so, you know, we have a real urgency in our industry because of the necessity to satisfy the demand.
00:41:47.460What 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.
00:42:02.900But how do you, how do you even talk to your employees?
00:42:06.640I mean, what, what do you tell these guys?
00:42:08.100What do you tell your folks around you?
00:42:09.880And, and as you say, I mean, you talk about the most vulnerable, what you're doing for charities and nonprofits.
00:42:15.900And I think that really paints a pretty powerful picture.
00:42:19.540But what, what, what's the anxiety level within the company, within the organization?
00:42:26.540A lot of the guys that, you know, I've owned several companies in my career.
00:42:29.740In this particular one, I brought in a lot of guys that I've worked with for 18 to 20 years.
00:42:33.900Um, 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.
00:42:42.500So 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.
00:42:52.500And 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.
00:43:05.800Um, let alone my own, let alone my own company, right?
00:43:09.320Because 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.
00:43:24.480So it's a, it's a really concerning thing.
00:43:26.800And 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.
00:43:43.420And 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.
00:43:57.220I'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.
00:44:16.640So the bottom line, I mean, and I appreciate it.
00:44:18.800At the end of the day, the bottom line is the bottom line.
00:44:21.000And, 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.
00:44:30.800But 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.
00:44:40.280Look, Joseph, I appreciate you painting that picture.
00:44:42.680Thank 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.
00:44:51.120And as you suggest, uh, it's, you know, it changes day to day, the flip-flop, the lack of certainty.
00:44:56.840And as a business owner myself, and I appreciate that reference, uh, certainty is, is the coin of the realm.
00:45:03.580At least you can work around that and you can make some decisions.
00:45:07.140But 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.
00:45:19.840Uh, the uncertainty plays a huge part.
00:45:22.000And, you know, we, we, we're trying to represent a company that, uh, is American based and grown.
00:45:29.320And, uh, you know, and we, we, we take great pride in what we do.
00:45:33.180You know, there's a lot of stories here of individuals that, uh, have family members that require what we do.
00:45:40.000And 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.
00:45:54.820You know, it, it, we're really just sort of, we have no control over this portion of what we can do.
00:46:01.720Well, 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.
00:46:15.140You 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.
00:46:27.660And by the way, I am damn confident we're going to win that.
00:46:31.080And we're going to get clarity on that in the next few weeks.
00:46:33.140So I really appreciate you willing to share your story.
00:46:35.940Thanks 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.