Treasury Secretary Bessent predicts rising consumer prices from tariffs despite White House claims, with retailers acknowledging inflation pressures amid soaring expectations.

Axios reports that Treasury Secretary Scott Bessent has privately and now publicly acknowledged that new and expanded Trump administration tariffs are likely to push consumer prices higher, even as the White House continues to argue that tariffs are not a meaningful driver of inflation. This marks a notable shift in emphasis from Bessent’s earlier public line in TV interviews and congressional testimony, where he repeatedly said that inflation was “up because of the service economy” and had “nothing to do with tariffs.” Axios highlights that this evolving stance is colliding with a sharp rise in inflation expectations among households and markets, raising questions about how tariff policy will interact with an already fragile disinflation trend. According to the story, major retailers—including large national chains that import significant volumes of tariff‑exposed goods—are telling analysts and policymakers that they are seeing real cost pressures from the latest tariff rounds and expect to pass at least part of those costs through to shoppers over the coming months. This feedback contrasts with the administration’s public messaging that tariffs are principally a tool of economic nationalism and revenue generation rather than a source of price pressure, and it aligns instead with academic and Federal Reserve research showing relatively high pass‑through from tariffs to import and retail prices. The Axios piece situates Bessent’s comments within an ongoing political fight over the causes of U.S. inflation, noting that while tariffs may not be the dominant driver of overall price growth, they are becoming an increasingly visible and contentious factor in the cost of living debate as voters focus on grocery, apparel, and household‑goods prices.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• Scott Bessent's 'gotcha' moment on Trump's tariffs and inflation (fortune.com)
• Transcript of U.S. Treasury Secretary Scott Bessent Interview with ... (home.treasury.gov)
• Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan (bloomberg.com)

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