Rising prices are putting pressure on President Donald Trump as his economic policies face mounting criticism. Despite promising to tackle inflation from his first day in office, Trump’s focus on imposing tariffs – taxes on imported goods – is raising concerns that his strategy could drive prices even higher.
Inflation, which appeared to be under control just a few months ago, has surged again, with rising costs for essentials like eggs and fuel hitting American households the hardest. Consumers are growing frustrated, and recent surveys show declining confidence in the economy as fears of further price hikes spread.
Since taking office, Trump has introduced a 10% tariff on Chinese imports. While these tariffs aim to boost American manufacturing and reduce the trade deficit, economists warn they could have the opposite effect.
“Tariffs are essentially taxes on American businesses importing goods,” said Chris Rupkey, chief economist at FWDBonds. “Those costs are passed to retailers and ultimately to consumers. If inflation expectations continue rising, real inflation will follow.”
In the coming weeks, Trump is expected to expand tariffs to goods from Canada and Mexico. These tariffs—25% on most imports and 10% on Canadian energy—are likely to raise prices on cars, fuel, lumber, and everyday products.
The potential economic impact is significant. According to Michael Pearce, deputy chief U.S. economist at Oxford Economics, lower-income households will be the hardest hit.
“Because low-income consumers spend a larger portion of their income on essential goods, rising prices due to tariffs will burden them the most,” Pearce said. “This policy could widen the gap between the wealthy and the poor.”
The University of Michigan’s latest survey shows consumer sentiment dropped by 10% in February—the second consecutive month of decline. Worries about rising costs linked to Trump’s tariffs are a major factor behind this drop.
A CNN poll released last week found that 62% of Americans believe Trump is not doing enough to combat inflation. Investor concerns about weakening consumer spending contributed to the Dow Jones Industrial Average falling 1,200 points over two days, marking the worst week of Trump’s presidency.
Walmart, the nation’s largest retailer, warned that growing consumer anxiety could dampen sales in the coming year. Since consumer spending accounts for more than two-thirds of the U.S. economy, a slowdown could have far-reaching consequences.
“If consumers cut back on spending due to rising prices, the economy could slow down rapidly,” Rupkey said.
Despite the growing concerns, Trump continues to blame former President Joe Biden for the current inflation crisis.
“Inflation is back, and I had nothing to do with it,” Trump said during a recent interview with Fox News. “The previous administration spent money recklessly.”
The Trump administration has proposed a multi-pronged approach to curb inflation, including cutting taxes, reducing government spending, and deregulating the energy sector. However, experts warn that these measures could further complicate the situation.
For instance, cutting taxes would likely increase the federal deficit. Deregulating the oil and gas industry may not lower fuel prices due to weak global demand. Additionally, providing tax rebates to consumers could increase spending, which may push prices higher.
As inflation fears mount, Trump’s economic strategy faces increasing scrutiny. If new tariffs are implemented next month, the cost of essentials like housing materials, electronics, and food could rise even further.
Economists caution that if Trump’s tariff policies continue, inflation could spiral out of control, leading to long-term economic damage.
“Tariffs are a double-edged sword,” said Pearce. “While they aim to protect American jobs, they risk making life more expensive for everyone—especially those who can least afford it.”
With consumer confidence slipping and prices on the rise, Trump’s handling of the economy may define the early months of his second term. For now, many Americans remain skeptical that his policies will bring the relief they were promised.
