Prices are now down starting to rise because of tariffs. Economists say this is just the beginning

Alicia Wallace, CNN
Thu, July 10, 2025 at 5:30 AM EDT
6 min read


Some goods prices have been marching higher in recent weeks. Economists expect that to broaden and worsen. Joe Raedle/Getty Images

(CNN) — Economists, researchers and analysts have warned that President Donald Trump’s sweeping trade policy of tacking steep tariffs on most goods that come into America will deliver a taxing blow to consumers via higher prices.

However, recent months’ economic data has shown that overall inflation has remained fairly tame.

Trump and members of his administration tout the positive economic reports as signs that tariffs are working. However, the chorus of concern is growing: Prices are moving higher, and economists say this is just the beginning.

Here’s a look at the mechanisms behind why price hikes, and hotter inflation, are a slow burn:

{snip}