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The Startup CPG Podcast

Bonus: Tariffs 101 with Aaron Alpeter

The Startup CPG Podcast

Startup CPG

Startup, Food, Business, Beverage, Cpg, Entrepreneurship

4.9642 Ratings

🗓️ 6 February 2025

⏱️ 24 minutes

🧾️ Download transcript

Summary

In this bonus episode of The Startup CPG Podcast, Daniel Scharff sits down with supply chain expert Aaron Alpeter, founder of Izba, to break down the latest tariff changes and what they mean for CPG brands. With new tariffs potentially impacting goods from Mexico, Canada, and China, Aaron explains the potential ripple effects on supply chains, pricing, and business strategies.


From understanding the true objectives behind these tariffs to exploring practical steps brands can take—like tariff engineering, cost sensitivity analysis, and alternative sourcing—this episode offers a crucial deep dive into a rapidly evolving situation.


Listen in as they share about:


  • Purpose of the Tariffs
  • Tariff Rates
  • Effect on Foreign Brands Selling in the U.S.
  • Immediate Impact on Businesses
  • Business Strategies to Adapt
  • Future of the Tariffs


Episode Links:

Website: https://www.izba.co/ 

LinkedIn: https://www.linkedin.com/in/aaron-alpeter/?originalSubdomain=ca 

Don't forget to leave a five-star review on Apple Podcasts or Spotify if you enjoyed this episode. For potential sponsorship opportunities or to join the Startup CPG community, visit http://www.startupcpg.com.



Show Links:

  • Transcripts of each episode are available on the Transistor platform that hosts our podcast here (click on the episode and toggle to “Transcript” at the top)
  • Join the Startup CPG Slack community (20K+ members and growing!)
  • Follow @startupcpg
  • Visit host Daniel's Linkedin 
  • Questions or comments about the episode? Email Daniel at podcast@startupcpg.com
  • Episode music by Super Fantastics

Transcript

Click on a timestamp to play from that location

0:00.0

When you go back, you take a look at what had to happen in order for these tariffs to come through.

0:14.0

Because keep in mind, we have a free trade agreement with Mexico and Canada.

0:18.0

This should not be allowed to happen.

0:19.7

But there is language in the USMCA that says,

0:22.4

when you are facing a national emergency,

0:25.2

you can put tariffs in place on a temporary basis.

0:27.9

One of the first executive orders that Trump signed

0:29.8

on January 20th was declaring an emergency

0:32.3

around fentanyl and the migration crisis.

0:34.6

And so that was the first kind of domino that fell.

0:37.0

This appears to have been something that was always the plan, and I would be surprised if it's something that only happens for a weekend and then is rolled back. The reality is that this is going to hurt the American consumer. It's going to hurt the Republican base dramatically. But I think what they're gambling on is that the pain will be so much worse

0:54.5

on the other side of the border than in the U.S. border, and it'll happen there sooner. They'll get

0:59.0

what they want before it actually comes through. So I can imagine a situation where these

1:02.9

tariffs threats are always kind of extended a month out, two months out, six months out,

1:06.9

and more and more things are happening until they become appeased with what they need.

1:12.9

What's the deal with these tariffs? I don't know, but the implications are going to be massive.

1:17.7

So I wanted to record a podcast today with Aaron Alpeter, who's a supply chain expert, he's

1:21.9

scaled a bunch of supply chain companies, just to kind of get us all on the same page.

1:25.9

What does it mean if you're a brand based in the U.S.? What does it mean if you're a brand based in the U.S.?

1:28.1

What does it mean if you're a brand based in Canada, Mexico, China, if you source ingredients from one of

1:33.1

these places, if you copac in one of these places. So honestly, things are changing so fast,

1:38.1

this might even be outdated within a day or two. We know, for example, since our recording earlier

...

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