The situation: While inflation eased in March—with the Consumer Price Index up 2.4% YoY and down 0.1% MoM—the downward trend is unlikely to hold due to the Trump administration’s trade policies.

Retailers see price hikes ahead: While the White House announced a 90-day pause on the most dramatic reciprocal tariffs proposed on “Liberation Day,” sweeping protectionist policies remain in effect—including a 10% universal tariff, 145% tariffs on Chinese goods, and 25% tariffs on imported vehicles.

These duties will drive up companies’ costs for everything from auto parts to bananas to TVs.