This is John Batchel, a conversation with colleague Veronique de Rie of the Mercatus Center about the tariffs.

Are they always inflationary?

The answer is probably yes.

However, not directly.

Makes the Fed's job more difficult.

Here, Veronique explains.

Tariffs are attacks on us,

and what that translates into is bumpiness ahead, I believe.

More of this tonight.

Well, so what is sure is that tariffs are tax on ourselves,

and a lot of what we import are inputs.

So it means that producing in America has become more expensive.

And because while the kind of the crazy high tariffs have been removed or paused for 90 days, there's still a 10% tariffs on

pretty much everything, if not higher, and of course, enormous on tariffs on China.

So it means that basically, like everything, everything is more expensive.

So in that sense, more expensive to get basically the same thing at a higher price means inevitably it's going to slow growth.

And in that sense, it's not that it's not that it causes inflation tariffs directly.

It's more that it makes really the fight against inflation much harder for the Fed.