The United States is facing a persistent inflation problem, with prices rising by 3% over the past year. While it’s not as severe as during the summer of 2022 when inflation hit 9%, it still affects everyday consumers. The latest tariffs imposed by President Donald Trump are expected to worsen the situation.
A “whack-a-mole” approach has become evident in the economy, where prices spike, and then another area experiences price hikes. This phenomenon has been ongoing since the pandemic began, with Americans facing increased costs for various items, including eggs, auto insurance, gasoline, and groceries. The recent surge in egg prices (53% over a year ago) and auto insurance rates (12% increase) highlights the complexities of this issue.
Trump’s tariffs are expected to push prices further up, leading to higher interest rates and mortgage rates that may linger longer. Economists disagree on the extent of the pain caused by these tariffs, but they agree that they will exacerbate inflation. This is in contrast to 2018 when Trump first introduced trade restrictions, which had a relatively minor impact due to lower inflation and more targeted measures.
Today’s consumers are more aware of prices and anticipate potential increases, leading businesses to raise their prices. The stakes are high for American voters who elected Trump on his promise to reduce costs. With the latest tariffs, Trump risks misreading the economic picture and failing to deliver on his campaign promises.
Source: https://www.washingtonpost.com/opinions/2025/02/14/trump-inflation-tariffs-economy