Corporate profits, after exploding in the high-inflation era, fell this year. Tariffs are very difficult to pass on after the price spikes in 2020-2022.
But profits are still huge after the pandemic free-money spike, except in auto manufacturing where losses pile up. Financial industry profits hit new record.
The Treasury market counts on the tariffs to slow the supply of new debt and could throw a hissy-fit if they end while the Fed cuts rates into accelerating inflation.
