President Trump has escalated his global trade initiative this week, believing that the import tariffs will generate manufacturing jobs and foster stronger economic growth in the U.S., while alleviating concerns regarding inflation.

As of Monday, the federal government has collected over $98 billion in tariff revenue, as per the latest data from the Treasury Department—a 110.5% increase compared to the same timeframe last year.

Treasury Secretary Scott Bessent remarked this week that tariff revenue could exceed $300 billion by the end of the year. If this prediction holds true, it would significantly surpass the $200 billion estimate provided by the Committee for a Responsible Federal Budget, economists at Moody’s, and others. In the meantime, companies have not fully transferred these tariff costs to consumers as anticipated, which has contributed to keeping inflation under control, as reported by the Washington Times.

The Consumer Price Index, a crucial indicator of inflation, showed a slowdown in May compared to the previous month, according to the latest data from the Labor Department. Prices for a wide range of goods, excluding food and energy, rose by only 0.1% for the month, resulting in an annual inflation rate decrease to 2.4%. This marks a decline from 3.3% in May 2024.

Economist Alex Salter from Texas Tech University stated that the inflationary effects of the tariffs have always been overstated. “When you impose a tax on something, its price increases, but imports constitute only about 15% of the U.S. economy, so raising the average tariff rate is insufficient to cause sustained depreciation of the dollar,” he explained.

“I believe that at most, you would see a one-time price increase for the goods affected, but the overall inflationary impact will be relatively minor, akin to a brief spike,” he conveyed to the Times.

Furthermore, the expense associated with exporting goods to the United States decreased by 0.9% in May, as reported by the Bureau of Labor Statistics. This represents the most significant drop since October 2023 and greatly surpasses Wall Street’s forecast of a 0.2% reduction.

The decline was primarily influenced by a notable decrease in automobile export prices. For example, the cost of Japanese cars sent to North America fell by 17.7% from March to May, according to the Bank of Japan.

China, which bore the brunt of the additional tariffs, has also lowered its export prices to the U.S., with the prices of Chinese goods declining by approximately 2% across all sectors from December to May, as stated by the Labor Department. In June, the United States and China commenced the finalization of a trade agreement, according to the Times.v