Are tariffs inflationary? Who will shoulder the increased cost? Will tariffs cause a recession? How do tariffs affect different products?

Federal Reserve officials are closely watching the levies, given the expectation that such policies could lead to higher prices.

President Donald Trump’s weekend announcement of tariffs on Mexico, Canada and China translated into a shock for market-based inflation expectations, prompting traders to now expect an annual headline rate from the consumer-price index that’s closer to 3% for much of 2025.

Mr Trump’s mood had been both euphoric and combative, even by his standards, after announcing tariffs on America’s three biggest trading partners—Mexico, Canada and China—over the weekend. “THIS WILL BE THE GOLDEN AGE OF AMERICA!

Markets are still pinning their hopes on the art of the deal. Stocks may have fallen on Monday as investors digested U.S. President Donald Trump’s decision to whack tariffs on Mexico, Canada and China,