Even so, a rollback of some levies since "Liberation Day" may reduce the impact on inflation. Trump paused a large swath of so-called "reciprocal tariffs" within days of the announcement. On Monday, Trump temporarily slashed tariffs on China from 145% to 30%.

Canada has effectively suspended almost all of its retaliatory tariffs on US products, tamping down inflation risks and improving its growth outlook, according to Oxford Economics.

US inflation slowed to its lowest rate in more than four years, an unexpected and welcome development at a time when President Donald Trump’s dramatically escalated tariffs are expected to cause prices to rise.

Tuesday’s report could provide an early read on how Trump’s duties will affect the prices Americans pay for necessities.

The Consumer Price Index jumped 2.3% in April from the year before, below March’s 2.4% increase, the Bureau of Labor Statistics said Tuesday.

The price hike threat from tariffs is receding while housing indicators pointing to a cooling in shelter costs

Peter Schiff has warned that without the implementation of high tariffs, the only path to reduce trade deficit is through dollar decline.

Smartphone shipments to the U.S. surged 30% in March as manufacturers Apple , Samsung and Motorola rushed to bring more devices into the country in anticipation of steep import tariffs, Counterpoint Research said on Wednesday.

April’s inflation report could show tariffs’ effects, although some analysts say businesses are working through stockpiled inventory and are hesitant to raise prices yet.