Larry Kudlow and Dan Clifton, Head of Policy Research at Strategas, analyze the economic impact of tariffs. Clifton asserts that inflation is primarily driven by money supply, not tariffs, contrary to common belief. He highlights how supply chains have adapted, resulting in effective tariff rate reductions for US consumers. Furthermore, he points to significant economic tailwinds from 100% expensing for business investments, observed in ISM data and corporate tax revenue trends, suggesting a strong underlying economic foundation despite geopolitical stress.