Member-only story
4 Reasons That Trump’s Tariffs Haven’t Caused Inflation
1. People aren’t spending like they used to
Between higher interest rates, credit card bills, and just general economic uncertainty, a lot of folks are pulling back on spending. When that happens, even if stuff should cost more because of tariffs, companies can’t really raise prices much without losing customers. So demand puts a cap on how much prices can rise.
2. The economy isn’t all about imports
Tariffs mostly hit imported goods, but the U.S. economy is mostly services: healthcare, education, software, finance. Those aren’t really touched by tariffs. So even if tariffs bump up prices on certain products, it doesn’t necessarily spill over into everything else.
3. Companies are taking the hit (for now)
A lot of businesses are quietly absorbing the extra costs instead of raising prices. They know customers are already sensitive to prices, so they’re eating some of the cost to stay competitive. Obviously, that might mean smaller portions, fewer features, or less quality in some cases. But prices at the register might not move much.
