Many economists have forecast that President Donald Trump’s imposition of tariffs would, by driving up the cost of imports, revive inflation. The most recent data, however, indicate that the rate of price increases has remained subdued thus far.
Some analysts see the rate of inflation reported in April, which was the lowest since February 2021, as the calm before the storm, arguing that it will take time for supply-chain disruptions to work their way through inventories and be felt by consumers in the form of shortages and price hikes. But others predict that the impact of Trump’s tariffs on inflation will be limited or will be offset by other factors.
