Are Tariffs Causing U.S. Inflation Fears?

Key Takeaways

• Consumers’ expectations for U.S. inflation in the next five years rose to 4.6% in May, the highest level since March 1991.
• One key driver of this increase is the tariffs on major trading partners, including Canada, Mexico, and China.
• Despite the recent trade war de-escalation between the U.S. and China, economists also see higher prices ahead.