Cabot Phillips

At the same time, core prices saw a 3.1% increase from last year. That is the best number we've seen in nearly four years. Here's White House Press Secretary Caroline Leavitt addressing those numbers Wednesday.

At the same time, core prices saw a 3.1% increase from last year. That is the best number we've seen in nearly four years. Here's White House Press Secretary Caroline Leavitt addressing those numbers Wednesday.

Looking through the data, inflation rates on housing saw the most notable cooling. They were up 4.2% from the same month last year, which doesn't sound great, but is actually the smallest yearly increase since 2021. So all that to say inflation is still present. Prices are still going up, just at a significantly slower pace than we saw in recent years.

Looking through the data, inflation rates on housing saw the most notable cooling. They were up 4.2% from the same month last year, which doesn't sound great, but is actually the smallest yearly increase since 2021. So all that to say inflation is still present. Prices are still going up, just at a significantly slower pace than we saw in recent years.

Right, these numbers do reflect February data that came in before President Trump ratcheted up his trade war with Canada, Mexico, Europe, and China, among others. On Wednesday, 25% tariffs on all steel and aluminum products went into effect. Canada immediately responded with 25% tariffs of their own on more than $20 billion worth of American imports.

Right, these numbers do reflect February data that came in before President Trump ratcheted up his trade war with Canada, Mexico, Europe, and China, among others. On Wednesday, 25% tariffs on all steel and aluminum products went into effect. Canada immediately responded with 25% tariffs of their own on more than $20 billion worth of American imports.

For their part, the European Union also slapped retaliatory tariffs on nearly $30 billion worth of goods, including home appliances, textiles, and agricultural products. And it's worth noting that list of goods is not random. EU officials told reporters they wanted to target products that primarily came from Republican-led states.

For their part, the European Union also slapped retaliatory tariffs on nearly $30 billion worth of goods, including home appliances, textiles, and agricultural products. And it's worth noting that list of goods is not random. EU officials told reporters they wanted to target products that primarily came from Republican-led states.

They're hitting soybeans in Mike Johnson's Louisiana, beef in Kansas, Nebraska and Texas, and produce in Alabama and Georgia. So they're clearly hoping to exert political pressure on Trump from within his own party.

They're hitting soybeans in Mike Johnson's Louisiana, beef in Kansas, Nebraska and Texas, and produce in Alabama and Georgia. So they're clearly hoping to exert political pressure on Trump from within his own party.

The White House has conceded that these tariffs could cause prices to go up in the short term, but they will, in theory, increase demand for American-made products in the long run, incentivizing companies to up their domestic production, bringing hopefully lower costs. Here's Commerce Secretary Howard Lutnick making that point on Fox Wednesday morning.

The White House has conceded that these tariffs could cause prices to go up in the short term, but they will, in theory, increase demand for American-made products in the long run, incentivizing companies to up their domestic production, bringing hopefully lower costs. Here's Commerce Secretary Howard Lutnick making that point on Fox Wednesday morning.

Now, others on the right say Democrats are fear-mongering over the looming impacts of tariffs. They point to President Trump's policies from his first term as proof you can implement them without broad price increases. To that point, here's heritage economists E.J. and Tony.

Now, others on the right say Democrats are fear-mongering over the looming impacts of tariffs. They point to President Trump's policies from his first term as proof you can implement them without broad price increases. To that point, here's heritage economists E.J. and Tony.

But look, there is certainly a very real political risk here attached to President Trump's strategy.

But look, there is certainly a very real political risk here attached to President Trump's strategy.

So during his first term, President Trump consistently saw a higher approval rating on his handling of the economy than any other issue. It arguably is what got him back in the White House. But in recent weeks, Americans do appear to be souring on his handling of the economy. A CNN poll found him at 44% on that front and his 12 points underwater and his lowest rating on the economy on record.

So during his first term, President Trump consistently saw a higher approval rating on his handling of the economy than any other issue. It arguably is what got him back in the White House. But in recent weeks, Americans do appear to be souring on his handling of the economy. A CNN poll found him at 44% on that front and his 12 points underwater and his lowest rating on the economy on record.

Now, the White House is confident those numbers will turn around as inflation continues to slow and tariffs drive American manufacturing. But that does not happen. There is a risk the president could lose support on the issue where he's typically been the most popular.

Now, the White House is confident those numbers will turn around as inflation continues to slow and tariffs drive American manufacturing. But that does not happen. There is a risk the president could lose support on the issue where he's typically been the most popular.