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Benzinga
Benzinga
Business
Piero Cingari

Trump Tariffs May Fuel Margin Squeeze, But Not Inflation, Economist Says

tariffs midjourney

Fears that President Donald Trump's tariffs could reignite an inflation spike are fading, as a growing number of economists say U.S. companies are now more likely to absorb those costs rather than risk losing market share.

In an exclusive interview with Benzinga, LPL chief economist Jeffrey Roach highlighted signs of margin compression as businesses absorb the cost of tariffs rather than passing them to consumers — a shift that could reshape both corporate profits and Fed policy heading into 2026.

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