“Liberation Day” one year on: How Trump's tariffs upended trade and reshaped the US economy
Updated September 22, 2026
It’s been more than 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. That forced him to revise his original plan.
Then came the landmark Supreme Court ruling earlier this year that invalidated those duties and forced the government to return tens of billions of dollars to the US businesses who had paid the steep tariffs, with more refunds still to come.
The ruling, however, hasn’t stopped Trump from moving ahead with his signature policy. Instead, he’s had to get even more creative, for instance, implementing a never-before-used Great Depression-era law to impose 50% tariffs on $20 billion worth of Canadian goods.
Just as economists thought businesses had moved past tariff-driven price hikes, companies are facing another rapidly rising expense: fuel, made more costly by the war with Iran. For now, many are using tariff refunds to help absorb the added costs. But that cushion won't last forever and it could wind down even more quickly due to the escalating trade war with Canada. Businesses may soon have little choice but to pass more of those expenses 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 could soon get even worse
Annualized inflation rate
Note: Data is not seasonally adjusted.
Source: US Bureau of Labor Statistics Consumer Price Index
The pace of price increases was fairly moderate throughout Trump’s second term, despite the higher tariffs. That’s changed because of the war with Iran, which has caused key energy costs to skyrocket, making it more expensive for businesses to transport goods and consumers to drive and power their homes. Price increases are now also spreading beyond energy to areas like electronics, and to services like childcare and elder care.
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
Beside oil, consumer goods that have seen the steepest price increases since Trump took office have mostly been 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
The job market has shown signs of improvement after months of sluggish growth
Monthly changes in nonfarm employment
Note: Data is seasonally adjusted and the two most recent months are preliminary.
Source: US Bureau of Labor Statistics
Since the Supreme Court ruling, businesses have shown some willingness to add employees after putting hiring on hold amid trade uncertainty. But plenty of forces are still weighing on their plans to add workers.
Advances in AI are allowing some businesses to operate with fewer workers, while the added uncertainty and costs from the war with Iran are giving employers another reason to hold off on hiring. And now, with the Federal Reserve’s first interest rate hike in three years, employers are likely to have more of their capital tied to repaying loans, which means less money will be available for expanding their workforces.
There are slightly more job openings than job seekers
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
Job seekers have had a rough year. But the scale has started shifting in their favor again, with the ratio of job openings in the US to unemployed people exceeding 1. That means there are more positions open than unemployed people. That ratio fell below 1 last year for the first time since 2021, as trade tensions forced employers to revise hiring plans.
Tariff revenue
Tariff revenue has taken a significant dive since the Supreme Court decision
Monthly tariff revenue collected by the US government
Source: US Treasury Department monthly statements
Tariff money is starting to flow back into government coffers as the pace of tariff refunds has slowed and new levies are in place.
Since the Supreme Court rendered Trump's most sweeping tariffs illegal earlier in the year, the government has refunded over $100 billion as of late August. In total, it is on the hook to send importers $166 billion worth of refunds, according to US Customs and Border Protection.