“Liberation Day” one year on: How Trump's tariffs upended trade and reshaped the US economy
Updated April 1, 2026
It’s been a year since President Donald Trump’s “Liberation Day,” when he walked into the Rose Garden with an oversized posterboard and instantly upended global trade, rolling out one of the most aggressive protectionist trade agendas in nearly a century. Trump’s sweeping tariffs instantly sent shockwaves across the entire global economy, fracturing longstanding alliances with other nations and forcing businesses to rewrite their entire playbook.
But quickly it became clear that nothing Trump enacted, announced or threatened would necessarily stick. If the market reaction was overly negative, Trump eased up. When some countries went against Trump’s desires, he hiked their rate.
Then came the landmark Supreme Court ruling earlier this year that invalidated Trump’s most sweeping tariffs, giving American businesses the opportunity to recoup the tens of billions of dollars they paid in tariffs. But it could be a while before they actually see that money.
Consumers, for the most part, have so far not seen the massive price hikes economists began warning about a year ago. But the US-Israeli war with Iran is pushing up transportation costs, leaving American businesses with even less of a buffer to absorb additional costs without passing them on to consumers.
To see how the US economy has shifted in the year since “Liberation Day,” CNN is tracking where the impact is hitting hardest. Keep scrolling — and be sure to check back to see how the picture continues to evolve.
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Consumers
Inflation remains stubbornly high – and it could soon get even worse
Annualized inflation rate
Note: Data is not seasonally adjusted.
Source: US Bureau of Labor Statistics Consumer Price Index
Even with the higher tariffs Trump enacted throughout the past year, price increases have been fairly moderate, at least so far. But as time has gone on, businesses have started passing along more tariff costs to consumers.
The war with Iran, which has caused key energy costs to rise to their highest levels since Russia invaded Ukraine, has forced businesses to tack on additional fees, compounding the higher prices for consumers.
Heavily imported consumer goods have seen some of the largest price increases due to higher tariffs
Monthly price changes for select items
Note: The Bureau of Labor Statistics did not collect detailed October price data due to the federal government shutdown.
Source: US Bureau of Labor Statistics Consumer Price Index
For now, consumer goods that have seen the steepest price increases since Trump took office tend to be those with lower profit margins that make absorbing tariffs difficult. Prices of heavily imported items — including tomatoes and coffee — have also changed more significantly than most other goods.
Many of the types of goods that have been the most sensitive to higher tariffs are also likely to be the most sensitive to higher energy costs. That’s because the less shelf-stable an item is, the less companies can stockpile it – and the more vulnerable it is to price increases.
Jobs
An already deteriorating job market may only be getting worse
Monthly changes in nonfarm employment
Note: Data is seasonally adjusted and the two most recent months are preliminary.
Source: US Bureau of Labor Statistics
Dramatic escalations in tariffs have historically led to periods of rising unemployment because businesses grow uncertain about how to respond to rapid changes in their costs, according to the San Francisco Federal Reserve. With little clarity regarding Trump’s trade policies, many businesses indefinitely paused hiring plans – or, in some cases, laid off workers.
Tariffs aren't the only factor driving the sluggish job market: Advancements in AI have made it easier for businesses to operate with fewer workers, exacerbating the issue. And the added uncertainty – and costs – stemming from the war with Iran are giving employers even less of a reason to expand their workforces.
There are fewer job postings and more job seekers, resulting in a declining ratio of job openings to unemployed workers
Job openings per unemployed person
Note: Data is seasonally adjusted and the figure for the most recent month is preliminary.
Source: US Bureau of Labor Statistics
The ratio of job openings to unemployed people captures the difficulty job seekers are facing.
That ratio plummeted to 0.2 in April 2020 as the US economy entered Covid lockdowns. By March 2022, as the global economy started to recover, the ratio leapt to 2.0, meaning there were two job openings per unemployed person. Last year, the ratio of job openings to unemployment fell below 1, the lowest since 2021 and has continued to decline.
Hires as a percentage of total employment – a metric that captures how many new workers are getting jobs – hit its lowest level in February since the pandemic and, before then, since 2011.
Tariff revenue
Tariff revenue has soared, but the government is on the hook to refund a substantial portion
Monthly tariff revenue collected by the US government
Source: US Treasury Department monthly statements
Tariffs have become a major source of government revenue, helping to ease the budget deficit. But much of the tariff revenue from last year came from ones that were rendered illegal. In the meantime, the Trump administration has said it intends to roll out new tariffs and has introduced a 10% global tariff that is set to rise to 15%.
$166 billion of $318 billion in tariff revenue is subject to refunds
Total tariffs collected during Trump's second term
Note: As of Feb. 2026
Sources: US Treasury Department, US Customs and Border Protection
The government is currently working on developing a system to administer refunds to tens of thousands of American businesses. It remains unclear when businesses will recoup those payments.