President Trump's 2025 Tariffs added less inflationary pressure to the economy than expected in their first year

The overall economic effect of President Trump's 2025 tariffs remains unclear

Researchers from UCLA and Yale found that tariff revenue and gains to US producers largely offset importers' costs—but the broader picture is murkier, as the trade deficit rose, manufacturing jobs declined, and 90% of tariff costs were passed through to importers rather than absorbed by foreign exporters.

In President Trump's first year of his second term, inflation fell from 3% year-over-year in January 2025 to 2.7% in December

While the price of eggs and bread went down over Trump's first year in office during his second term, coffee and beef prices rose. Utility bills and home insurance continued to surge, but mortgage rates, rent, and home prices began to stabilize in 2025.

US Tariff revenue rose to $264B in 2025—More than double that of recent years

In April 2025, President Donald Trump announced tariffs on countries across the globe, raising them to unprecedented levels in modern American history. The increase in tariff rates led to a significant rise in tariff revenue.

Auto and consumer goods companies absorbed billions in costs due to President Trump's 2025 tariffs

Detroit's three automakers combined paid $6 billion in tariffs in 2025. Procter & Gamble raised prices on 25% of its products, and supply chain experts estimate that 80-85% of all tariff costs were absorbed domestically—either by companies or consumers.

Trump's 2025 tariffs represent a significant break from the rules-based trade order

The Trump administration imposed broad tariffs on other countries outside WTO rules in 2025, claiming that those countries had long violated trade agreements and that the US was simply leveling the playing field.

The US dollar's value weakened significantly in 2025 amid tariffs

Experts at US Bank predicted in August 2025, that the downward trend was likely to continue, although they acknowledged that uncertainty remains high. As tariffs moved to the center of the White House’s agenda, all G10 currencies grew stronger against the dollar—the Swiss franc even posted double-digit gains.

A nuanced break down of how tariffs are impacting prices

As tariffs have increased to their highest levels since the 1930s, economists have kept a close eye on retail prices. This chart and accompanying explainer shows correlations between key tariff announcements and news and the costs of roughly 350,000 goods from five major retailers.

Tariffs once fueled the US economy

US tariffs peaked in 1930 with the Smoot-Hawley Tariff Act, which slashed global trade by 65%. Once a key revenue source, tariffs gave way to income taxes in 1913, leading to decades of lower trade barriers. Today, US tariffs remain among the lowest worldwide.

Pros and cons of tariffs

While some mainstream economists are skeptical about tariffs, President Donald Trump is bullish on them. The pros and cons of tariffs include their ability to help governments raise money and the potential for retaliatory tariffs.

Prices can still feel high even if inflation is slowing

This is partly because a recent spike in inflation raised prices permanently, so even though the pace of price growth has slowed, prices have still gone up for good.

The Federal Reserve targets 2% inflation

It’s an arbitrary number originating from an offhand comment made by a New Zealand policymaker. The real objective is to maintain predictable prices for businesses and families to plan around while avoiding the dangers of deflation.

The highest inflation in US history was estimated at 30% in 1778

This was just after the Revolutionary War. Both World Wars also brought double-digit inflation. It's worth noting that exact inflation rates in early America are difficult to calculate precisely.

China had an inflation rate of -0.4% in August 2025

As opposed to other G20 countries that are largely struggling with high inflation rates, China is facing deflation. Sluggish growth in the country's once booming real estate market is just one glimpse into the consumer slowdown triggering deflation.

President Trump ordered an end to US production of the penny in 2025

The US will stop producing pennies after more than 233 years in 2026, though they will still be considered legal tender. It takes roughly three cents to produce a single penny, with an annual price tag of nearly $100M.

'Planet Money' debates the financial indicators that defined 2025

In this end-of-year episode, "Planet Money" stages a playful debate over which economic indicators best captured the chaos of 2025—from tariffs to AI bubbles—and which signals may matter most as the US economy heads into 2026.

Is Domino’s pizza inflation-proof?

A Big Mac Extra Value Meal is nearly $11 in 2025, compared to $4.59 in 1993. A Taco Bell crunchy taco costs $1.79 today, but was only 59 cents in 1990. Inflation impacts the price of many fast-food items—but the price of a Domino's pizza hasn't changed much at all in the past two decades.

Mapping projected food inflation across the world in 2026

Iran tops the list of hardest-hit countries with a projected 56% inflation on food prices in 2026, followed by Argentina (33%) and Turkey (25%). In the opposite direction is Niger, whose food inflation is expected to drop 18% as a result of strong harvests and financial stabilization. The global average of food inflation is expected to be 3%.

A majority of Americans think President Trump is using more power than previous presidents

An October 2025 Pew Research Center survey found that 69% of Americans believed President Trump was trying to exert more power than previous presidents. Most Democrats viewed it negatively, while about half of Republicans said it was good for the country.

The S&P 500 yields a roughly 10.5% average annual return

Tthe factors that go into that calculation are multifaceted—from how inflation impacts it to the stocks themselves. During periods of high inflation, stock performance can be stunted by investor concerns, for instance. The average return also varies based on whether dividends are included.

Roughly $5T of stimulus money flooded the economy during the pandemic

Recessions can last anywhere from months to years. To encourage economic growth, governments use policy levers such as lowering interest rates or introducing a stimulus. Economists credit massive stimulus funds for helping the economy quickly recover from a recession during the COVID-19 pandemic.

The 2021 infrastructure law increased transit spending 42%, but may not have produced more transit

The infrastructure bill committed $108B to transit, the largest investment in history. However, three years in, real inflation-adjusted investment has declined. An 84% increase in non-highway spending coincided with a potential 29% decrease in actual structures, most likely due to construction inflation and bureaucratic delays.

Amazon deforestation down by a third in 2023

Read this article to understand how Brazil's President Luiz Inácio Lula da Silva, who started his term on January 1, 2023, has been successful in reducing deforestation in the Amazon region. Deforestation dropped by 33.6% in the first six months of...

Palantir's executives have become increasingly involved in American politics in recent years

Palantir's government contracts have steadily increased since Donald Trump was re-elected in 2024, moving from intelligence and defense to public health and assisting in Elon Musk's Department of Government Efficiency efforts.

How the stock market performed under every US president

It's worth noting that the stock market as we know it today didn't exist under the leadership of earlier presidents, such as George Washington and Thomas Jefferson.

Social Security beneficiaries have received cost-of-living adjustments almost every year since 1975

Until 1975, Congress had to act each time Social Security benefits were increased. The 1970s saw particularly high inflation rates that eroded the purchasing power benefits, leading to the change.

US housing costs have risen by roughly 175% between 1991 and 2026—but a growing number of Gen Zers are becoming homeowners anyway. In 2025, 4% of homebuyers were Gen Z, up from 3% the year before.

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

The USPS spent $3.97B in 2024, accounting for .058% of the federal budget.

While the first exchange-traded fund (a 'basket' of different assets that can be bought and sold on a stock exchange) in the US only launched in 1993, the global ETF market has grown to more than $10T in the short time since.

The American Society of Civil Engineers' infrastructure report card gave the US a C in 2025, its highest grade since the project launched in 1998.

Before the current East Wing ballroom project, only two White House renovations in the past 100 years cost more than $10M.

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

Jimmy Carter signed a 1978 bill that legalized home brewing, a move credited with kick-starting the craft beer industry.

In 2025, four executives from large tech companies were given positions in the US Army Reserves—including Palantir Chief Technology Officer Shyam Sankar, which reinforced Palantir's ties with the US military and its role as a leading defense partner.

Despite being favored by 87% of Americans, Congress does not have term limits.

The United States has had a tumultuous relationship with Cuba since its 1959 revolution, highlighted by a nuclear crisis and a decades-long trade embargo.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

SpaceX's S-1 or 'prospectus' revealed many previously unknown details about the company, including its unprofitability despite doing $18.7B in revenue in 2025, exactly how many voting shares Elon Musk will have in the company (roughly 85%), and more.

The identity of the Tank Man in the iconic photo from the 1989 Tiananmen Square protests remains unknown and was possibly killed.

Electrical grids worldwide must double their power delivery capacity by 2050 to meet surging demand from AI and electric vehicles.

'Silent' fireworks have gained more interest in recent years as a quieter celebratory option.

Scientists testing how climate change affects plants found, in a years-long simulation study, that poison ivy grew 70% faster with the resulting extra carbon dioxide.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

How fusion—which releases energy when two lighter atoms combine to form a heavier atom—differs from fission

In 1945, Surrealist artist Salvador Dalí and legendary animator Walt Disney began collaborating on a short film that was not completed until 2003, years after both men had died.

Doctors differentiate between a phobia and fear by asking patients whether their fear interferes with their day-to-day activities.

The Russia-Ukraine conflict is the largest ground war in Europe since World War II in casualties, forces mobilized, and displacement of civilians.

The Beatles' US label rejected the band's first two singles, 'Please Please Me' and 'From Me to You,' with one executive calling the band 'dead in the water.'