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Concealed Republican > Blog > News > Inflation dips to 4-year low despite trade war hysteria: ‘Americans are breathing a sigh of relief’
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Inflation dips to 4-year low despite trade war hysteria: ‘Americans are breathing a sigh of relief’

Jim Taft
Last updated: May 13, 2025 4:40 pm
By Jim Taft 10 Min Read
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Inflation dips to 4-year low despite trade war hysteria: ‘Americans are breathing a sigh of relief’
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Inflation dipped to a four-year low despite tariff uncertainty, indicating consumer prices have barely been affected by President Donald Trump’s trade war.

The annual inflation in April fell to 2.3%, which is the lowest rate since February 2021. Although Trump’s tariff policies sparked fears that prices would skyrocket, the annualized inflation rate during Trump’s second term so far is only at 1.6%, which is considerably slower compared to former President Joe Biden’s term, which saw an 8.6% annualized inflation rate during the first 18 months.

Trump also struck two trade deals in the last week with the United Kingdom and China, alleviating consumers’ concerns about market volatility.

RELATED: Rand Paul’s anti-tariff crusade was doomed — and rightly so

Photo by JIM WATSON/AFP via Getty Images

‘Every dollar is going further and workers are able to keep more of their hard-earned paychecks!’

Americans are also enjoying lower costs for essential goods like gas and groceries. Average energy prices have fallen about 1.5% since January, and food prices declined in April for the first time since Trump was president in November 2020.

RELATED: Vance casts tiebreaking Senate vote after Republicans join Democrats to tank Trump’s tariffs

Photo by Win McNamee/Getty Images

The cost of apparel also fell 0.2% in April despite a slight 0.4% uptick in March. Automakers are also relatively unaffected by tariffs, with the cost of new vehicles remaining unchanged, while used car prices fell by 0.5%.

“For the last several years, hardworking families have faced an affordability crisis,” Labor Secretary Lori Chavez-DeRemer said in a statement Tuesday. “Finally, with [President Trump] at the helm, Americans are breathing a sigh of relief — every dollar is going further and workers are able to keep more of their hard-earned paychecks!”

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