Jonathan Levin, Columnist

The Tariff U-Turn Came Just in Time for the Economy

The consumer price index is the latest evidence that Trump deescalated before the economic data began to sour.

May 13, 2025 at 4:13 PM UTC

Jonathan Levin is a columnist focused on US markets and economics. Previously, he worked as a Bloomberg journalist in the US, Brazil and Mexico. He is a CFA charterholder.

Price check.
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President Donald Trump may have dialed back his tariff experiment just in time — at least if the April economic data is any indication.

A report Tuesday showed that the consumer price index rose just 2.3% in April from a year earlier, less than economists had expected and the coolest year-over-year pace since early 2021. That added to labor market data showing that firms have mostly refrained from large-scale layoffs in the face of the tariff threat, even though hiring has been anemic. In essence, Trump reversed course on his destructive tariff policy before it demonstrably upset the apple cart.