Goldman Sachs believes that the inflationary effect of tariffs is starting to fade.

The Supreme Court on Friday rejected the Ieepa tariffs, putting the US trade policy at a turning point. With the Trump administration shifting strategies and relying on other tariff authorities instead, economists at Goldman Sachs believe that future price increases driven by tariffs will be limited. Goldman's team estimates that since April, tariffs have raised the inflation rate of the core personal consumption expenditure price index by about 0.7 percentage points. However, they point out that the cost pass-through effect has been weakening and estimate that in the coming months, tariffs will only raise core prices by about 0.1 percentage point. Alec Phillips of Goldman Sachs wrote in a report, "We estimate that, at this point, the further impact on consumer prices will be minimal."