Trump Tariffs Defy Doom: Inflation Cools, Egg Prices Drop, and Trade Deals Thrive

In April 2025, headlines screamed of economic doom following President Trump’s “Liberation Day” tariff announcement, predicting skyrocketing inflation, mass layoffs, and unaffordable groceries. Outlets like CNN and Reuters warned of a “global trade war,” recession, and iPhones costing $2,300, while critics on X claimed families would face $6,000 in extra costs. Yet, weeks later, the data tells a different story.

Inflation fell to 2.3% in April, the lowest since 2021, defying forecasts of a 5% surge. Employment remained robust, exceeding economists’ predictions, with no reported tariff-related layoffs. Gas prices dropped 12% year-over-year to $3.15 per gallon, easing transport costs. Grocery prices, unlike the 20.7% surge under Biden, rose a modest 2.4% year-over-year in 2025, signaling stabilization rather than sharp hikes.

The news media’s favorite metric for judging the Trump administration—egg prices—fell 10% from March to April. The highest egg price under Biden was $6.23 per dozen in March 2025; today (May 13, 2025), it’s $4.29, down 31%. U.S. inflation saw a modest increase in April, coming in below expectations and resisting projections that new tariffs would accelerate price growth.

Adding to the turnaround, China and the UK signed new trade deals on American terms this week, boosting U.S. leverage without the feared trade war. The media’s apocalyptic predictions missed the mark, as policy adjustments and resilient markets proved the fearmongering overblown.

In May 2025, dire predictions of Trump’s “Liberation Day” tariffs causing soaring costs have proven unfounded. Inflation stands at a manageable 2.3%, grocery prices are stable, and egg prices have dropped 31% from $6.23 in March to $4.29. Tariff rollbacks and new trade deals with China and the UK, coupled with cost absorption by exporters and retailers, have prevented the feared price spikes, highlighting the gap between media fearmongering and economic reality.