Top Economist Says Trump's Tariff Rollbacks Are A 'Remarkable Admission' That His Policies Raised Prices - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Apple (NASDAQ:AAPL)

Core Viewpoint - President Trump's decision to roll back specific tariffs is seen as an acknowledgment that his trade policies have contributed to inflation, according to economist Justin Wolfers [1][2]. Economic Implications - The selective tariff cuts indicate that the administration understands the economic principle that tariffs raise prices, despite publicly downplaying inflation [2][4]. - The rollback of tariffs is characterized as a "remarkable admission" of the negative impact of tariffs on consumer prices, raising questions about the effects of remaining tariffs [4]. Policy Changes - The recent executive orders by President Trump aim to alleviate the affordability crisis by eliminating tariffs on certain Brazilian exports and reducing duties on agricultural imports such as beef, coffee, and tomatoes [5]. - These tariff rollbacks have resulted in the loss of nearly $800 billion in expected national debt reduction over the next decade, significantly affecting the administration's budget outlook [6]. Market Reactions - Following the announcement of tariff rollbacks, futures for the S&P 500, Nasdaq 100, and Dow Jones indices were trading higher, indicating a positive market response [7]. - The SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF saw premarket increases, with SPY up 0.29% and QQQ up 0.36% [8].