It’s no secret that tariffs, trade wars and recession talk have dominated economic talk over the past year.
However, entering 2026, Bank of America CEO Didn’t panic.
Brian Moynihan made a quieter, counterargument in an interview on CBS News’ “Face the Nation with Margaret Brennan”: The impact of tariffs Last year’s gobbling market is coming to an end.
In terms of perspective, As of December 26, 2025this Nasdaq Composite Index Soared 22.2% year to date S&P 500 Index up 17.9%, Dow Chemical up 14.5%.
Contrary to outside rumors, Moynihan believes the tariff situation is starting to stabilize.
He believes businesses will adapt quickly once the dust settles on an eventual drop in interest rates.
Costs will be factored into prices and supply chains will adjust.
Additionally, Moynihan pointed to stable consumer spending, continued wage growth and an accommodative labor market that is far from collapsing.
He said even the Fed, as long as its independence remains intact, is far less important than Mr. Market thinks.
Bank of America CEO Brian Moynihan says the economy may be stronger than recent market fears. Photo by Getty Images of Xinhua News Agency” loading=”eager” height=”641″ width=”960″ class=”yf-lglytj loader”/>Moynihan believes the upgrade period is over and the market is dealing with something easier to digest.
In his view, tariff levels are actually converging at this time.
To better understand why he describes it this way, it’s worth looking at how 2025 unfolds.
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January 1, 2025: one U.S. imposes 50% tariff on Chinese chips came into effect, adding to the pressure at the beginning of the year.
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April 2-5 (“Liberation Day” shock): The United States announced a 10% lowest tariff According to CNN, most imported products have higher “reciprocal” tax rates 59 countries.
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April-May (China surges, then truces): Some U.S.-China tariffs jump to A jaw-dropping 125%then one Transaction on May 12 Reduce interest rate hike in April to 90 days 10% (later expanded).
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Late July: one 15% to 20% “World Tariff” According to the “Star” report, the landing time of flights between the United States and the European Union is 15%compared to the previously expected 30%.
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August 1-7: tariffs expanded to 10% to 41% of 69 partnersAccording to Reuters, the effective U.S. tariff rate is close to 18%,from 2.3% the year before.
Moynihan still feels China and North America (USMCA) There are exceptions, but outside of these corridors, the tariff situation has mostly stabilized.
The severe impact of the 2025 tariff shock can be measured with some hard data. The initial hit was quick and unsettling, to say the least.
Having said that, here’s what the data says:
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Inflation impact: Earlier this year, the Yale Budget Laboratory estimated that tariffs would increase U.S. price levels in 2025 2.3% In the short term it is almost equal to $3,800 per household ($2024).
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Tariff level reset: By the end of 2025, U.S. effective tariff rates soar to nearly 16% to 17%compared with the low single digits before the shock took effect.
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Changes in trade flows: Tariffs generated in the northern region $236 billion Sales as of November 2025, Imports from China fell 25% first three quarters.
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Market reaction: Following the announcement on April 2, the S&P 500 Index plunged nearly 15% at the groove, wipe off $5 trillion According to Reuters, the market value increased in just a few days.
