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Bessent: Inflation Driven by Services, Not Tariffs — Defends Tariff Rollbacks

Treasury Secretary Scott Bessent told NBC's Meet the Press that recent inflation increases are driven by the services sector rather than tariffs on imports. He defended rolling back tariffs on more than 200 food items and cited ongoing trade talks with Latin and Central American partners as helping ease some food prices. The tariff removals — covering goods such as coffee, beef and bananas — came after recent Republican election losses in races where affordability was a key issue. Bessent said the administration has slowed inflation and is working to reduce it further.

07:24 AM, 11/24/2025Economy

Treasury Secretary Scott Bessent told NBC's Meet the Press that the recent uptick in inflation is being driven by the services sector rather than tariffs on imported goods. He defended the administration's decision to roll back tariffs on more than 200 food and agricultural products, saying the tariff changes are not behind rising consumer prices.

Moderator Kristen Welker pointed to Consumer Price Index data showing overall inflation at 3% in September, up from 2.3% in April — a rise she noted occurred before many of the administration's tariff measures took effect.

“First of all, Kristen, if you look at the data, for imported goods the inflation has actually been flat. Inflation is up because of the service economy and services. So that has nothing to do with tariffs,” Bessent said.

Bessent added that the U.S. Trade Representative has been negotiating trade deals with Latin American and Central American partners for months, and he said those talks — combined with the tariff rollbacks — have helped ease prices on many food items. He reiterated that the administration believes it has slowed inflation and is working to bring it down.

Earlier this month, President Trump signed an executive order removing tariffs on scores of products to help lower grocery costs. The tariff relief covered items including coffee, tea, beef, bananas, tropical fruit, wood and iron.

The move to lift tariffs followed a series of electoral defeats for Republican candidates in which Democratic challengers who emphasized affordability and cost-of-living issues won decisive victories. Critics argued the rollback was politically timed, while supporters said it would provide immediate relief at the register.

Key takeaways: Bessent says services — not tariffs — explain recent inflation gains; the administration points to trade negotiations and tariff relief as measures to reduce food prices; the rollback followed voter concern about affordability.

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