Treasury Secretary Scott Bessent says tariffs not broadly inflationary
US Treasury Scott Bessent Revises View On Tariffs And Inflation
US Treasury Secretary Scott Bessent said he was mistaken in earlier comments suggesting tariffs would significantly drive inflation, stating updated economic data showed a more limited price impact than previously expected.
Scott Bessent Revises Tariff Inflation View
Bessent clarified that earlier assessments overstated the inflationary effect of tariffs on consumer prices. He explained that supply adjustments, currency movements and changes in sourcing had reduced pass-through costs to households. The revised position reflects updated analysis of import prices and domestic market behaviour.
Officials indicated tariffs can affect specific sectors but do not always translate into broad consumer inflation.
Economic Data On Tariffs And Prices
Recent economic indicators showed stable inflation trends despite ongoing trade measures. Analysts observed that companies often absorbed part of tariff costs through margins or shifted supply chains to manage pricing pressure. The Treasury said inflation outcomes depend on wider factors such as demand conditions, energy costs and wage growth.
The comments come amid continuing debate over trade policy and its impact on households.
Policy Implications For Trade Strategy
The statement suggests policymakers may view tariffs as less directly inflationary than earlier feared, though sector-specific effects remain possible. Authorities emphasised that trade measures would continue to be evaluated alongside broader economic conditions.
The Treasury said it will monitor inflation data while balancing trade objectives and domestic price stability.
