The Inflation From Tariffs That Economists Feared Begins to Emerge

July 15, 2025

Inflation rose to 2. 7% in June, reaching its highest level since February, driven partly by President Trump's tariffs increasing costs on various goods including furniture, clothing, and appliances. The Labor Department reported a 0.

Who is affected

American consumers facing higher prices for goods like furniture, clothing, appliances, gasoline, groceries, toys, and sporting goods
Retailers and businesses absorbing and passing on tariff costs, including Walmart, Mitsubishi, and Nike
President Trump, who faces political challenges from rising inflation contrary to his promises
International tourists, who are visiting the U.S. less frequently
The middle class, specifically mentioned as the demographic Trump promised to help

What action is being taken

The Federal Reserve is maintaining current interest rates rather than implementing cuts
Businesses are passing tariff costs to consumers with price increases, as Walmart raised prices in June and Mitsubishi implemented a 2.1% price increase
Nike is implementing "surgical" price hikes
The White House is pushing back against claims that tariffs are negatively impacting prices
Democratic lawmakers are warning about the impact of Trump's tariffs on inflation

Why it matters

Rising inflation contradicts Trump's claim that the U.S. "effectively has no more inflation"
The inflation surge complicates the Federal Reserve's decision-making on interest rates
Consumers are experiencing higher costs for everyday goods, particularly imported items
Trump's tariff policy is creating political battles over its economic impact
The situation tests Trump's 2024 campaign promise that his agenda would help the middle class
The Supreme Court has signaled Trump may be able to fire Powell "for cause," increasing tensions between the White House and Federal Reserve

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint