Tea, tariffs, and tough decisions

Key takeaways

US factory orders are rebounding modestly, with future demand reliant on geopolitical stability and tax incentives.
Chevron's investment in Venezuela signifies a strategic move amid complex political and economic factors, aiming to increase oil production significantly.
Small businesses are heavily impacted by tariffs and inflation, facing higher costs for supplies and uncertainty about the future. They seek relief and stability to plan long-term growth.

Summary

US Manufacturing Trends and Future Outlook

This section discusses recent data on US factory orders, particularly for durable goods, which are items expected to last over three years. The latest figures from July show a 1% increase in factory orders, the largest jump since April, despite rising prices for steel, aluminum, and oil due to tariffs and geopolitical tensions. Experts suggest that demand, driven by data center expansions and tax incentives, may keep manufacturing robust through this year and possibly next, contingent on geopolitical stability.

Chevron’s Expansion in Venezuela Amid Geopolitical Shifts

Chevron announced a significant $7 billion investment in Venezuela's Orinoco Belt to double its oil production over the next five years. This move is notable as Chevron is currently the only major US oil company with substantial operations in Venezuela after the US ousted President Nicolás Maduro eight months prior. This expansion reflects ongoing corporate strategies amid changing geopolitical landscapes.

Impact of Tariffs and Inflation on Small Businesses

In this segment, small business owner Rachel Rosner shares how tariffs and inflation are impacting her tea shop in Reston, Virginia. She discusses increased costs for herbs and spices, notably a 30% rise in cardamom, which threaten her holiday sales and business growth. Despite holding prices steady, Rosner faces ongoing uncertainty and hopes for tariff relief before the holiday season. Her experience highlights the broader economic challenges faced by small businesses amid tariffs, rising fuel costs, and global tensions, with a focus on the need for stability.

Show notes

On this morning's show, "Marketplace Morning Report" host Kimberly Adams is joined by Rachel Rozner, owner and founder of Elden Street Tea Shop in Reston, Virginia. Rozner reflects on how tariffs and inflation have challenged her business. But first, the Commerce Department releases July factory orders today. That data gives us a sense of how manufacturers see future demand. We dig into how manufacturing has been doing so far this year.

Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.

Marketplace Morning Report is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.

Stories covered in this episode:

For this tea shop, it's not just tariffs weighing on business