The tariffs that President Donald Trump rolled back this past week will barely move the needle on consumer inflation, but his retreat potentially signals a major shift, according to a Wall Street analyst. Given that imported food makes up just 10% of what U.S. households consume, the tariff rollback’s impact on inflation is a “practically a rounding error,” wrote Bernard Yaros, lead U.S. economist at Oxford Economics, in a note on Friday. “The inflation response goes against the predictions of standard models, whereby CPI inflation should go up in response to higher tariffs,” researchers Régis Barnichon and Aayush Singh wrote.
Author: Jason Ma
Published at: 2025-11-16 22:26:37
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