Inflation is back \u2013 not as a global fate, but as a political consequence. What economists have been predicting for months is now becoming apparent on the shelves, at the pump, and on Americans' bank statements: Donald Trump's massive tariff policy is pushing prices upward. That was reason enough to take the red pen to the budget. In June, consumer price inflation rose to 2.7 percent compared to the previous year \u2013 the highest level since February. In May, the inflation rate was 2.4 percent, and in April only 2.2. On a monthly basis, this means a price increase of 0.3 percent \u2013 twice as much as the previous month. The hardest hit were imported goods such as toys, clothing, kitchen appliances, sporting goods, and electronics. And although Trump regularly claims there is \u201cno inflation,\u201d the numbers tell a different story.<\/p>\n\n\n\n
Behind the raw percentages lies a concrete scenario: household goods that remained stable in price for years are suddenly rising significantly. Gasoline cost 1 percent more in June than in May, groceries increased by 0.3 to as much as 0.6 percent. Oranges, primarily imported from Brazil, became 3.5 percent more expensive within a single month \u2013 not least because Trump is threatening a 50 percent tariff on Brazilian products. Mexican tomatoes, taxed at 17 percent, are also showing the first effects. The situation is particularly clear for durable consumer goods: according to Eric Winograd of AllianceBernstein, their prices increased year-over-year for the first time in about three years. He speaks of a \u201cflashing tariff inflation\u201d that is now finding its way through the system. At the same time, the dynamic of rental prices is slightly cooling \u2013 with an increase of 3.8 percent year-over-year, the smallest rise since 2021. But that is not enough to ease general price pressure, as the effect will not last long.<\/p>\n\n\n\n
That it is precisely President Trump now calling for interest rate cuts intensifies the dilemma for the central bank. The Federal Reserve should \u201cimmediately cut rates,\u201d he has repeatedly demanded \u2013 hoping for a key rate of around three percent instead of the current 4.3. But Fed Chair Jerome Powell remains skeptical. \u201cWere it not for the tariff uncertainty, the Fed would already be cutting,\u201d said Winograd \u2013 capturing the mood in much of the economic sector. Because Trump\u2019s policy is more than just a pricing issue. It puts the Fed in a bind: tariffs increase inflation but simultaneously slow growth. Normally, the Fed would cut rates during an economic slowdown \u2013 but when prices are also rising, every move becomes a balancing act. Powell himself recently reiterated his warnings about the consequences of Trump\u2019s tariff escalation \u2013 and now faces attacks from the White House. Trump publicly accused the Fed Chair of \u201cincompetence\u201d \u2013 and even criticized the renovation costs of Fed buildings, which are projected to reach 2.5 billion dollars.<\/p>\n\n\n\n
There is also cautious criticism from the business world. Walmart, the world\u2019s largest retailer, has announced partial price increases. Mitsubishi speaks of an average 2.1 percent markup, and Nike refers to \u201csurgically placed\u201d price hikes. At the same time, many companies are still sitting on inventory they stockpiled in the spring ahead of the tariff enforcement. Others are holding back \u2013 hoping that trade deals will be reached to reduce tariffs. But Trump has no such intention: 10 percent on all imports, 25 percent on foreign cars, 30 percent on Chinese goods, 50 percent on steel and aluminum \u2013 and starting in August, 30 percent on EU products. What is sold as \u201cAmerica First\u201d means for many Americans simply: paying more for less choice. And a return to the political illusion that global dependencies can be broken with protectionist force \u2013 without having to pay the price in the end. But the reality at the checkout is harsher than any campaign slogan.<\/p>\n\n\n\n
Die Inflation ist zur\u00fcck \u2013 nicht als globales Schicksal, sondern als politische Konsequenz. Was Wirtschaftswissenschaftler seit Monaten prognostizierten, beginnt sich nun in den Regalen, an der Zapfs\u00e4ule und auf den Kontoausz\u00fcgen der Amerikaner:innen abzuzeichnen: Donald Trumps massiver Zollkurs treibt die Preise in die H\u00f6he. Das war Anlass genug, den Rotstift anzusetzen. Im Juni stieg die […]<\/p>\n","protected":false},"author":1,"featured_media":8768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[7,41,1],"tags":[],"class_list":["post-8767","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-topstory","category-trump-s-world","category-trump-usa"],"yoast_head":"\n