🔥 Market Insight: Tariffs vs. Inflation — What Bessent Really Means

Scott Bessent is doubling down on his stance that U.S. inflation isn’t tied to tariffs, arguing that price pressures stem from services, structural shifts, and broader economic forces — not import taxes. This comes as the U.S. begins rolling back certain trade duties, originally introduced over concerns about China’s trade practices.

Most economists disagree, noting that tariffs typically raise import costs, which companies often pass directly to consumers. The U.S. scaling back duties signals a shift in priorities — potentially to ease pressure on import-heavy sectors, support supply chains, improve relations, or soften consumer prices.

While Bessent downplays the tariff-inflation link, analysts emphasize that inflation is shaped by multiple moving parts: supply chains, wages, energy markets, and yes — trade barriers. The latest rollback highlights how complex and politically sensitive the inflation debate has become.

⚡ Key takeaway: Inflation is never driven by just one factor… and tariffs remain part of the bigger picture.

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