For much of 2025, the Trump administration's wide-ranging tariffs defied forecasts that the import duties would drive up inflation. But that reprieve appears to be over, with economic data this week showing the tariffs are now pushing prices higher.
The Consumer Price Index in August rose at a rate of 2.9% from a year ago, accelerating from the previous month as President Trump's tariffs filtered through the economy. Heavily imported goods saw some of the steepest price hikes last month, the data show. The increase represents the fastest rate of inflation since January, when Mr. Trump was inaugurated for his second term.
Although the tariffs were first announced in April on what Mr. Trump called " Liberation Day ," their implementation was largely delayed as the administrati