Tariffs and inflation: do they really go hand-in-hand? Recent research challenges the conventional wisdom. A major central bank study finds that tariffs may not actually stoke inflation the way most assume. Instead, the bigger impact comes from the demand side—uncertainty about trade policy spooks consumers and businesses alike, making them pull back on spending. The result? Growth takes the hit, not prices. For traders and investors watching macro trends, this shifts the usual playbook. When policy uncertainty rises, expect softer demand, tighter liquidity, and possibly different asset flows across markets. Worth tracking as trade dynamics continue evolving.