Tariffs were feared as inflationary, but the first data can point in the opposite direction.
PPI was flat month over month against expectations for an increase, while core PPI was also unchanged. Year-over-year readings came in below forecasts. That does not make tariffs harmless, but it changes the starting point for the debate.
Expectations matter. If policy pressure produces negotiation and de-escalation rather than a sustained protectionist shock, the net effect can be less inflationary than feared.
Watch the next rounds of prices, margins, and demand. The headline policy is only half the story; the response and the path of expectations determine the macro outcome.