China's Lower Growth Target and Policy Implications

US Treasury Secretary Bessent signaled US importers could expect to pay a 15% tariff. US President Trump had mentioned this, but endorsement by an administration official adds credibility. The effect is not necessarily to raise inflation but—because tariff composition differs from the illegal IEEPA tariffs—could keep inflation rates higher for longer. Tariff reductions are not passed on to consumers the way tariff increases are.