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July 21, 2025 29 mins

North Carolina businesses are stocking up on imports ahead of possible tariffs. Senate leader Phil Berger builds a $1.8M war chest ahead of a primary challenge. Meanwhile, the USDA opens a trade mission to Mexico as NC college grads struggle in a tight labor market. And law enforcement groups back “smell searches” as the state Supreme Court considers their legality.

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Speaker 1 (00:08):
It's five oh five and welcome into a Monday edition
of the Carolina Journal News Our Newstock eleven, ten ninety
nine three WBT. I'm Nick Craig. Did good morning to you.
As President Donald Trump's tariff plans near activation on August
the first, many North Carolina business owners have been stocking
up on imported products to prepare for a period of

(00:31):
fluctuating prices and even interruptions in access to certain foreign
made goods. Questions over the extent and of uncertainty for businesses,
including many of those here in North Carolina, they have
started stockpiling goods and supplies in anticipation of future price increases.

(00:51):
Brian Balfour, the vice president of Research at the John
Locke Foundation, noted US firms and consumers heavily front loaded
orders of imports following Trump's Liberation Day in April. Additionally,
many imports currently being received at US ports are from
orders locked in at prices previous to many of the

(01:13):
tariff announcements. It will, at a minimum take several months
after the tariffs are fully implemented to gauge a clearer
picture of their impact on the economy North Carolina. Businesses
across Several industries, including transportation, food service, and retail, have
taken many of these precautionary measures to front load some

(01:35):
of these costs. North Carolina imports have already risen by
thirty nine point eight percent year to date in the
calendar year twenty twenty five, which is a significantly larger
than we've seen in some of the previous years, where
North Carolina imports only grow eleven percent in twenty twenty
three and nine and a half percent in twenty twenty four,

(01:56):
So that forty percent increase in some cases more than
qui drupling what we've seen over the last couple of years.
Among the largest import increases are pharmaceutical products they're up
one hundred and forty eight plus percent, inorganic chemicals up
twenty two hundred and forty seven percent, slash ash and

(02:16):
ores two hundred and seventy two percent, and a plethora
of other industries we've got those percentages, including electronic machinery,
iron and steel, paper and paper products, all of those
up anywhere between eight and fifteen percent. You can check
out that full list on our website Carolina Journal dot com.

(02:37):
As businesses throughout the state have been anticipating those rises
in prices demand increase for goods. In fifty two out
of ninety eight import commodit groups are up year to date.
The total year to date North Carolina imports have amounted
to more than forty seven billion dollars as of May.

(02:58):
Of course, looking back at DC, the admit Ininistration has
continued to push back its tariff deadline as few trading
partners have agreed on full trade deals with the United States,
with full implementation at least as of right now scheduled
for August one. On July the fourteenth, Kevin Hassett, the
director of the National Economic Council, discussed the president's economic

(03:21):
plan on CNBC's squawk Box news program. Part of the
discussion focused on tensioned downwards of the administration's comprehensive tariff policy,
which have been front and er since Liberation Day. Has
it expressed optimism about the future economic conditions, citing the
president's background as a season deal maker, telling the panel

(03:43):
on CNBC quote, We've got a guy who's the best
deal maker in history, who has made billions of dollars
by the way, squeezing everything out of deals. We've got
a deadline, and we'll see how things land, but I
know that they're going to land in favor of the
American people. When asked why inflation nor the labor market

(04:04):
seem to be reacting aversely to some of these tariff policies,
has it attributed this to a combination of lower import
prices and economic patriotism, telling the group Americans, because of
Donald Trump's leadership, have recognized that when they buy an
American product, they not only get perhaps a better product,

(04:24):
certainly a better product in most of the time, but
they're also making their communities stronger, and so I think
there's a lot of patriota. Other economists and policymakers in
opposition to the president's tariff policies have contended that while
prices aren't rising now, they will do so soon once
these new tariffs kick in. According to Brian Balfour of

(04:47):
the John Locke Foundation, he says, with a majority of
Trump's tariffs being delayed until August first, it's very premature
to make any conclusions about the tariff impacts on the
prices of imported or impacted goods. You can check out
some additional details on that store on this story this
morning over on our website. It's over at Carolina Journal

(05:09):
dot com, turning our attention to some statewide news this
monment leader Phil Berger, the Republican out of Rockingham County,
has raised over one point seven million dollars. According to
his midyear campaign finance report, more than one point sixty
nine million dollars was raised through individual contributions, making up

(05:30):
the bulk of the receipts bulk of the donations to
his campaign committee, while another forty four thousand came from
other committees. As of June the thirtieth, which was the
reporting deadline, the Senate leader closed out the period with
a hefty one point eight million dollars cash on hand.
Phil Berger is not on a ballot this year. He

(05:52):
will have a primary election in margin will be on
the election or on a ballot in November of twenty
twenty six, and one of the likely reasons for those
surges in donations is a looming primary challenge from Rockingham
County Sheriff Sam Page, who announced his bid for Burger's
seat back in February of this year. Page's entry into

(06:15):
the race has injected a rare note of uncertainty into
a long term considered safe seat for Senator Berger, who
has led the North Carolina Senate going all the way
back to twenty eleven. Andy Jackson, the director of the
Civitas Center for Public Integrity at the John Locke Foundation, said,
quote Burger had raised three hundred and seventy six thousand

(06:38):
dollars at this same point in twenty twenty three. The
question is whether he is raising more money or just
money earlier. Burger's strong fundraising isn't just vital for his
own reelection, but has been critically important for Senate Republicans overall.
His financial support helped colleagues in far more competitive races

(06:59):
and districts, playing a key role in maintaining the GOP
supermajority in the North Carolina Senate after the twenty twenty
four election. Andy Jackson says, quote, a concern for Republicans
is that they will have to spend money on his
primary other Republicans win their Senate races. His campaign raised

(07:19):
three point two million dollars in the twenty twenty four election,
but most of that was sent to the North Carolina
Senate Majority Fund. Both candidates have been sparring back and
forth on social media over a variety of issues over
the last couple of weeks, including school choice, Page's record
as a sheriff, and an ongoing investigation by the State

(07:41):
Bureau of Investigation that's the SBI over missing campaign finance reports.
The candidate filing period for the twenty twenty six primary
election begins on noon begins at noon rather on Monday,
December the first of this year, and ends at noon
on Friday at December the ninth. This is going to
be likely a very expensive primary race, as we watch

(08:05):
it on many other very close races in the North
Carolina General Assembly, as Republicans, at least in the North
Carolina Senate will do everything in their power to continue
to hold a super majority, Democrats will try and chip
away at that. And looking at the North Carolina House,
Republicans will be doing everything they can to pick up
one additional seat to get to that super majority threshold,

(08:29):
while Democrats, again similar situation, will try and holdner two
to put themselves in a better position in the chamber
in the North Carolina House. We'll track those elections as
they get significantly closer coming up later this year. All
those details over on our website this morning. At Carolina
journal dot com. It's five twenty one. Welcome back to

(08:54):
the Carolina Journal News Hour, Newstock eleven ten ninety nine
three war and the looming thread of heavy heavy tariffs
to the USDA is now accepting applications for a trade
mission to visit that country coming up in the fall.
X grade to Mexico should apply for the November three
through sixth trip by the July thirty first. As part

(09:16):
of the trade mission, US agribusiness representatives will inquires from
Mexico City in nearby areas through business to business meetings,
market briefing, site tours, networking events organized by the Foreign
Agriculture cd Undersecretary for Trade and Foreign Agriculture Affairs Michelle Berkering.

(09:37):
She noted strengthening export opportunities for American farmers, ranchers, and
agribusinesses is a top priority of USDA. This trade mission
will connect US producers with key buyers in Mexico, expanding
economic opportunities supulture products globally competitive. In twenty twenty four,

(09:58):
Mexico emerged as a a top export destination for US
agricultural products, with sales exceeding more than thirty billion dollars
and supporting an estimated one hundred and ninety plus thousand
American jobs. That's according to a USDA press release. Agric
the United States and Mexico Trade Agreement, or the USMCA,

(10:21):
totaled near seventy nine billion dollars that year, continuing a
steady growing trend that has taken place over the last decade.
Steve Troxler, who is the Commissioner of the North Carolina
Department of Agriculture and Consumer Services, told The Carolina Journal.
We actively share these valuable USDA trade missions with our

(10:42):
agricultural exporters through the International Market Division and its communication channels.
We strongly encourage industry members to take advantage of these
opportunities when they align with their Mexico is a long
value trading partner with the United States and I don't
see that changing. North Carolina exported more than two hundred

(11:05):
and forty one million dollars worth of agricultural products to
Mexico in twenty twenty four, according to data from the
North Carolina Department of Agriculture. As of May of this year,
the export value was one hundred and twenty nine million dollars,
which is about a fourteen percent increase compared to May
of last year. That's calendar year to calendar year. According

(11:28):
to the USDA, the growth of US exports to Mexico
is driven by factors including increasingly disposable income among Mexico's
upper middle class, widespread recognition of United States food brands
and food trends, and a robust demand for premium agricultural products.

(11:49):
Consumer oriented products comprised the largest share of US agricultural
exports to Mexico, growing by more than seventy five percent
between the year's twenty twelve and twenty twenty four. The
USDA expects continued strong export opportunities across a range of
product sectors, including things like beef, poultry and related products,

(12:12):
dairy products, seafood, tree nut, as well as baking and
food processing ingredients. Beyond these, there are promising prospects for
United States exporters of animal feed, rice pulses, seed potatoes,
and livestock genetics. Those interested can apply for the trade Mission.
We've got that link over on our website Carolina Journal

(12:35):
dot com. The Mexico Trade Mission is part of the
USDA's broader effort and its promotion of its export strategies.
Trade missions to Thailand, Guatemala, Hong Kong, and Peru have
recently have recently come forward as well. Has been very
successful for some US exporters. So as we continue to

(12:56):
discuss tariffs ongoing questions over trade, a couple of those
meetings scheduled those details over on our website to Carolina
Journal dot com, turning our attention back to the state
this morning. The North Carolina Department of Commerce released a
report earlier this month on the labor market challenges faced
by recent college graduates, suggesting despite a widespread labor shortage,

(13:21):
many young workers are having trouble finding appropriate work. College
remains a worthwhile investment for most students. Recent college graduates
are confronting a more difficult label market than in previous
years as they navigate technological changes and the ups and
downs of the post COVID kinda and the nation's unemployment

(13:44):
rates have been below five percent for the past three years,
which is generally described full employment, and the Federal Reserve
has identified present labor market conditions as solid. Recent college
graduates are faced with more more difficult labor market conditions
past The Department's economists have found that companies are just

(14:07):
as reluctant to let go of their current employees as
they are to take on new workers. Hiring rates in
North Carolina have reached their lowest levels in ten years.
As a result. Data collected from nc Tower that's the
North Carolools for Online Work and Education reporting indicated that

(14:27):
the weakening labor market has been especially unfavorable to recent
bachelor degree recipients from the University of North Carolina system.
Those would be UNC graduates. Graduates across majors as diverse
as business, engineering and social sciences have seen wage cuts.
Post Graduate earnings for computer and information science majors dipped

(14:51):
by the most that was a twenty two percent decrease,
while the average decrease among all subject areas was around
four percent. Conversely, earnings for health related majors increased by
two percent, which the department attributes to the growing demand
for healthcare due to the aging population in some area

(15:11):
of North Carolina. While the North Carolina Department of Commerce
has emphasized that this data does not refute the value
of college as an investment for most students, it has
expressed worries that such labor market challenges might be premature
in nature, as college wage premiums have continued to level off.

(15:33):
The Department's economists admit that the source of these labor
demands and wage declines is debated and may be attributed
to one or more of a combination of the following
factors three that they laid out in their report. The
first one, periodic downturns that are part of an economy
cycle of expansion and recession, and other labor saving technology

(15:56):
reducing the amount of labor needed for businesses to operate.
In the third, changes in employer's perception of a college
degree and its value. Economists are also unsure whether these
changes represent a temporary setback or will be a more
permanent feature of the evolved job market. You can read

(16:18):
more details on this report from the North Carolina Department
of Commerce. It's very interesting. Those details are available on
our website, Carolina Journal dot com. The headline despite labor shortages,
NC college graduates face employment headwinds again. That's available over
at Carolina Journal dot com. It's five thirty six. Welcome

(16:43):
back to the Carolina Journal. News Hour, news Stock eleven,
ten ninety nine to three WBT. I'm Nick Craig. Good
Monday morning to you. We're go battle. They could have
major implications for law enforcement practices across can rely on
the smell of marijuana combined with a so called cover
scent like cologne, has probable cause for a vehicle search.
To walk us through this very interesting legal challenge this morning,

(17:06):
Mitch Koki John Locke Foundation joins us on the Carolina
Journal News Hour. Mitch, this is an interesting situation unfolding
across North Carolina.

Speaker 2 (17:15):
It really is. In this dates back nick to the
time when North Carolina made hemp legal, and so one
of the things that has cropped up since then is
that those who advocate for clients who've been charged based
on marijuana since have said, look, a vehicle that's based
or a residence based on the odor of marijuana that

(17:39):
law enforcement detects before conducting this search, that that is
unconstitutional because they may be violating people's rights who didn't
have it. And so the courts in North Carolina have
struck down this argument that the odor of marijuana can
no longer be used as a basis for probable cause

(18:01):
for a search. But this latest case that comes out
of Greensboro has an interesting twist because the officers in
this case stopped a car and then searched the car,
because not only did they detector of marijuana, but they
also detected a very strong scent of cologne, or at
least one officer described it as a strong fruity smell.

(18:22):
And so the cologne combined with the marijuana, they said
the cologne was a cover scent. And so, as this
case has gone through the courts, the defendant, who was
eventually charged with a gun crime because of the search,
said that, wait a minute, my Fourth Amendment rights were
violated because they had this sort of been hemp, not marijuana,

(18:45):
legal hemp and the legal cologne. The officers put those
two things together and came up with what the lawyers
in this case described as an unconstitutional double odor rule. Now,
the courts, so far at the trial court level and
the State Court of Appeals in a unanimous decision, struck
this down, saying no, the officers proceeded in the proper way.

(19:09):
They looked at what they call the totality of the
circumstances before deciding to engage in this search. And because
of that, what was revealed in the search was able
to be used in court. And that's why after they
found this defendant his name was Tim, in charge of
with a gun crime that is able to stand. What's
interesting is that though the state Court of Appeals ruled

(19:33):
unanimously against Dobson, the state Supreme Court has agreed to
take the case. It agreed earlier this year to take
it up, and the latest development is that the statewide
groups that deal with district attorneys, sheriffs in North Carolina
and chief this week supporting the law enforcement stance in
this case, saying that, look, this is not a case

(19:56):
of some sort of unconstitutional violation of with Amendment rights.
The officers in this case were engaging in common sense
law enforcement. They smelled this cologne, which could have been
a cover set that those two factors, combined with everything
else that their law enforcement training prepares them for, said

(20:17):
that this is a vehicle that needs to be searched,
and of course after they had the search, they found
additional drugs and they found the gun on this suspect, Dobson,
who eventually was charged and convicted. So it'll be very
interesting to see what the State Supreme Court does with
this case. Now, the State Supreme Court didn't need to
take the case because there was a unanimous decision from

(20:40):
the Court of Appeals, but the state Supreme Court has
decided to review this issue. How all of these big
law enforcement groups for the das and the police chiefs
are all saying, look, you should allow this and the
conviction that came out of it to stand.

Speaker 1 (20:55):
Before we get into some more pertinent details about this
case itself, I want to go to what you just
mentioned there and a unanimous court of appeals had already
ruled on this. Mitch, reading the teas, why do you
think the Supreme Court would take something like this up?
Is there anything that you can gather in that.

Speaker 2 (21:11):
Well. One clue that you might get is from the
way that the Supreme Court decided to handle this case.
When the appeal was made to the Supreme Court, the
lawyers basically said, here are two options for why the
state Supreme Court might take the case. The first option
was the idea that smelling marijuana means you could be

(21:32):
smelling hemp, which is legal and so constitutional. The Supreme
Court rejected that, and I think partly that's because the
courts in North Carolina have already dealt with this issue.
I don't believe that it's gone to the state Supreme
Court yet, but the Court of Appeals has on multiple
occasions said that this is not a reason to throw
out a search. But the second item that was put

(21:54):
forward was this notion that the courts have sanctioned and
unconstantitutional borough majority of the State Supreme Court of the
number of justices they need they're going to hear the
case was something that they wanted to address whether this
idea of having the marijuana smell and the colonne smell
together came up with some sort of new double odor

(22:17):
rule that would be unconstitutional. I think they decided that
they're going to take that up, either to say that no,
you can't use these two things in concert with each
other as the only factors to have a law enforcement search,
or on the other hand, they decided that let's just
settle this for good and say that the marijuana smell

(22:39):
is still good and having the cologne smell with it
is not going to be something that's going to distract
from this other factor. My guess is the State Supreme
Court really just wanted to say, let's settle this once
and for all, or at least as one to do that.

Speaker 1 (22:56):
And looking at these two scenarios that you LLLL. Probable
cause out is a very important part of law enforcement,
and this would have an impact across the entire state
of North Carolina. Mitch, you can imagine a situation if
the Supreme Court comes down on this and says, oh,
that additional odor of a heavy cologne or some other
smell throws out probable cause. That would put law enforcement

(23:17):
probably a pretty tricky and tough situation.

Speaker 2 (23:21):
Yeah, it really could, And I think that's one of
the reasons why those very law enforcement groups with the das,
the sheriffs, and the police chiefs wanted to weigh in
on this case. Basically, their argument is these law enforcement
officers are using their training and using common sense to
decide when to search a vehicle. An officer smells marijuana,

(23:42):
that in and of itself is a good basis for
a search, and courts have said that they'd also smell
the cologne. That's something that can be used to try
to cover up marijuana sentence. So that's another reason that
would factor in to a law enforcement decision that a
particular vehicle or a particular residence is liable for a search. Now,

(24:06):
of course, it is important to want to protect Fourth
Amendment rights you don't decide I'm going to search anyone
I want for any reason. There needs to be a good,
legitimate probable cause, and I think this case has at
least the potential to set some good guidelines on what
is appropriate and what is inappropriate when law enforcement wants

(24:29):
to search a vehicle or residence without having a warrant.

Speaker 1 (24:33):
We've got a lot more interesting details on that case
this morning. You can read those over on our website
Carolina Journal dot com. We appreciate the update. Mitch Koki
from the John Locke Foundation joins us SO on the
Carolina Journal News Hour. It's five point fifty two. Welcome
back to the Carolina Journal News Hour. News. Donald Trump's

(24:54):
tariffs plan near activation on July or August the first rather,
many North Carolina business owners have been stocking up on
imported products to fluctuating prices and even interruption in some
access to certain foreign made goods. Questions over the extent
and the time frame of tariff implementation have created a

(25:17):
large amount of uncertainty for businesses. Many of those here
stockpiled goods and supplies in anticipation of future price increases.
Brian Balfourd, the Vice president of Research at the John
Locke Foundation notes US firms and consumers heavily front loaded
orders of imports following Trump's Liberation Day back into April.

(25:40):
Many of the imports currently being received at US ports
are from orders locked in at prices that are previous
to many of the tariff announcements. It will, at a
minimum take several months after the tariffs are fully implemented
to gauge a clear picture of their impact North Carolin.
Lot of businesses across several industries, including transportation, food service,

(26:05):
and retail, have taken such ports have already risen year
to date thirty nine point eight percent for the calendar
year in twenty twenty five. This is significantly larger than
what we've seen in years past. We're sent in twenty
twenty three and nine and a half percent. Those are
yearly increases in twenty twenty four, so you're looking at

(26:26):
more than sure from twenty twenty three, and well more
than that number in twenty twenty four. Among the largest
import increases are in pharmaceutical products, where they are up
one hundred and forty eight and a half percent, inorganic
chemicals two hundred and forty seven plus percent, as well
as other industries including electronic machinery that includes sound equipment,

(26:48):
television equipment and parts fourteen percent increase there paper and
paved percent, toys, games and sporting equipment eleven point six
percent as busy. This is throughout the state having prices.
Demand has increased for goods in fifty two out of
the ninety eight import commodity groups a year to date,

(27:09):
with the total year to date North Carolina imports amounting
to more than forty seven point three billion dollars. However,
that numbers all the way back from May. The administration
has continued to push back on its tariff deadline, as
very few trading partners up until this point have agreed
on a full trade deal with the United States, with

(27:30):
its full implementation expected here in just a couple of
weeks on August the first. Kevin Hasset, the director of
the National Economic Council, was on CNBC squawk Box last
week and expressed optimism about future economic conditions since deal maker,
telling the panel quote, We've got a guy who's the

(27:51):
very best deal maker in history, who's made billions of
dollars by squeezing every dollar out of deals. We've got
to know that they're going to land in a favorable
way for people. When asked why neither inflation nor labor
markets seem to be reaching reacting rather adversely to some
of these tariff policies, at least the ones that are

(28:12):
in place right now, Kevin has to attribute that to
a combination of lower import prices and economic patriotism, telling
the panel Americans, because of President Trump's leadership, have recognized
that when they buy an American product, they not only
get perhaps a better product, but certainly a better product
most of the time, and they're also making their community stronger.

(28:36):
So I think there's a lot of patriotism in this data.
Other economists and policymakers in opposition to the president's tariff
policies have contended that while price are not yet rising,
they will do so very shortly once those tariffs kick in.
Brian Balfour of the John Locke Foundation notes, with a
majority of Trump's tariffs being delayed until August first, it

(29:00):
is very premature to make any conclusion about the tariffs
impacts on the prices of impacted goods. We of course
have been looking at tariffs and the impacts on a
variety of industries across the state of North Carolina, particularly
those in the agricultural business, which is the largest in
our state. And you can find details on all of

(29:21):
those storiesbsite this morning. That's Carolina Journal dot com. That's
gonna do it for a Monday edition at WBT News
is next followed by Good morning BT. We're back with
you tomorrow morning, five to six right here on News
Talk eleven, ten and ninety nine to three WBT
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