US inflation appears to have resurged, with rising prices on eggs, fuel, and other goods threatening to derail President Donald Trump’s economic plan. The nation, weary of inflation, had pinned its hopes on Trump to address the affordability crisis. However, his focus on tariffs has raised concerns that these policies will exacerbate the issue.
According to a recent survey by the University of Michigan, US consumer sentiment declined for the second consecutive month in February, with Americans losing confidence in the economy due to worries over Trump’s tariffs potentially boosting inflation. A CNN poll showed that nearly two-thirds of US adults feel Trump isn’t doing enough to address inflation.
The acceleration of price hikes has led investors to fear a pullback in consumer spending, which accounts for more than two-thirds of America’s gross domestic product. This could have severe consequences for the economy, potentially leading to a recession if consumers rein in their spending.
Trump’s administration is set to impose delayed tariffs on Canada and Mexico, threatening to raise prices on cars, lumber, fuel, produce, and other goods. The move has sparked concerns about retaliatory measures from these countries, which could hurt US industry.
The expansion of steel and aluminum tariffs, as well as the proposed reciprocal tariffs on autos, lumber, pharmaceuticals, microchips, and other products, threatens to widen America’s rich-poor divide. Low-income consumers would bear the brunt of higher consumer prices, exacerbating existing social and economic inequalities.
Trump has acknowledged inflation remains a problem but deflects blame to former President Joe Biden. His plan to combat high prices includes tax cuts, deregulation of energy, and cutting government spending, which economists question as a viable solution due to concerns about increased borrowing and potential inflation.
As the situation unfolds, Trump’s favorability ratings are already eroding. The nation watches with bated breath as the US economic situation continues to evolve, with tariffs and consumer sentiment taking center stage in the struggle against inflation.
Source: https://edition.cnn.com/2025/02/24/economy/trump-inflation-tariffs/index.html