Webinar Rewind: Diversity in the democracy reform movement

America's tariff experiment, now nearly a year old, is proving more painful than its architects anticipated. What began as a bold stroke to shield domestic industries and force concessions from trading partners has instead delivered a slow-burning rise in prices, complicating the Federal Reserve's battle against inflation. As the policy grinds on, economists warn that the real damage lies ahead, with consumers and businesses absorbing costs that erode purchasing power and economic momentum. This is not the quick victory promised but a protracted burden that risks entrenching higher prices just as the economy seeks stability.

The tariffs, rolled out in phases since early March 2025, have jacked up the average import duty from 2 percent to around 17 percent. Imported goods prices have climbed 4 percent since then, outpacing the 2 percent rise in domestic equivalents. Items like coffee, which the United States cannot produce at scale, have seen the sharpest hikes, alongside products from heavily penalized countries such as China. Retailers and importers, far from passing all costs abroad as hoped, have shouldered much of the load initially, limiting immediate sticker shock. Yet daily pricing data from major chains reveal a creeping pass-through: imported goods up 5 percent overall, domestic up 2.5 percent. Cautious sellers absorb some hit to avoid losing market share, but this restraint is fading as tariffs are embedded in supply chains.