The ‘affordability crisis’ may force Trump to cut tariffs in 2026, veteran market watcher predicts

In his December 29 report titled “2026—Another Year Of Living Audaciously!”, the president of Yardeni Research outlines a “Roaring 2020s” base-case scenario where the administration pivots from protectionist friction to transactional easing. While 2025 was marked by rising costs for imported durable goods due to higher tariffs, Yardeni predicts that 2026 will see the administration utilizing these tariffs as bargaining chips rather than permanent walls. Tariff pivot The mechanics of this potential policy shift rely on what the administration calls “reciprocal” victories. Yardeni, a generally bullish analyst known for constructive long-term views such as the “Roaring 2020s” thesis and high…