Treasury Secretary Scott Bessent has reiterated his stance that “tariffs are not inflationary” in an interview with CNBC.
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“You could get a one-time price bump,” said Bessent. “But in terms of a generalized economic inflation, I don’t think that tariffs cause that.” He added that the stock market has surged higher following its April plunge, indicating that investors are not concerned about tariffs and their potential to harm the economy.
Inflation Data Supports Bessent’s Stance
Inflation has remained subdued since President Trump’s tariffs went into effect. In May, consumer price index (CPI) inflation increased by 0.1% month-over-month and 2.4% year-over-year. Economists were expecting a rise of 0.2% and 2.4%, respectively.
At the same time, Trump plans to raise tariffs for countries that haven’t inked a trade deal with the U.S. by July 9. Countries that are cooperative with negotiations could receive a deadline extension. The effects of these higher tariffs on inflation are still up in the air.
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