Inflation Expected to Continue
If you’re tired of seeing inflation in the headlines, you’re probably not going to get much relief soon. Economists have warned that tariffs could be inflationary, but so far the effect on prices has been relatively mild. Members of Trump’s administration have said tariffs could cause a "one-time" price increase as companies make that transition. However, experts believe that’s unlikely.
The Impact of Tariffs on Inflation
Liz Ann Sonders, the chief investment strategist at Charles Schwab, thinks that inflation is going to be on a roller coaster ride going forward as the economy digests the impacts of President Donald Trump’s tariffs. Sonders pointed to her previous view that the economy had been through a rolling recession over the last few years, referring to the idea that a downturn doesn’t strike all at once, but rather there are "pockets" that crop up at different times.
The Rolling Nature of Inflation
Sonders said that the problem is, there is no one time as it relates to the implementation of tariffs. It has been rifle-shot on, off, delays, tariffs being used as a tool beyond just raising revenues or improving the trade deficit. So, she thinks we’ve got the rolling nature of this, where you see pockets of impact on the upside, you maybe get some pockets of offset on the downside as opposed to anything that is one-time in nature.
Trump’s Tariff Policies
Trump has often pushed hard on tariff policies before softening his tone. The president announced his "Liberation Day" tariffs in early April, before delaying most of the duties by 90 days and then by another month as he worked to secure trade agreements with other nations. The deadline for higher tariffs on China has also been extended for 90 days.
The Pace of Inflation
The pace of inflation has fluctuated so far in 2025. Price growth peaked at the start of the year at around 3%, before declining and rising again in the months following April, when Trump first introduced his sweeping array of tariffs.
Conclusion
In conclusion, the impact of tariffs on inflation is expected to continue, with a rolling nature of inflation predicted. The economy is likely to experience pockets of impact on the upside and downside, rather than a one-time effect. As the trade policies continue to evolve, it’s essential to stay informed about the potential effects on the economy and inflation. With the pace of inflation fluctuating, it’s crucial to monitor the situation closely and be prepared for any changes that may arise.
