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"Today's inflation report confirms what we already knew: Trump's tariffs are a tax on working-class Americans and additional tariffs would hurt them even more."
Inflation figures released Tuesday by the U.S. Bureau of Labor Statistics offered what economists described as early evidence that President Donald Trump's erratic tariff policies are driving up prices across the nation's economy, from household appliances to groceries to apparel.
The Consumer Price Index (CPI) rose 2.7% in June compared to the previous year, according to the new data—the highest reading since February. Separate figures released by the Labor Department showed that real wages declined slightly in June, underscoring the impact of rising prices.
"Trump's Big Beautiful tariffs are showing up in the data," wrote Dean Baker, a senior economist at the Center for Economic and Policy Research. "It's very MAGA!"
Baker highlighted coffee prices—which were up 2.2% in June—and noted that "prices will go much higher if Trump carries through with his threat of a 50% tax on coffee imported from Brazil because they are prosecuting someone for trying to overthrow the government."
According to the Labor Department, the "food at home" index—which tracks grocery costs—rose 0.3% in June and is up 2.4% compared to a year earlier. Beef and ice cream prices rose to record highs last month, and toys, shoes, and other categories also registered increases.
"The impact of tariffs is becoming more salient," said Ernie Tedeschi, director of economics at Yale University's Budget Lab. "Apparel, which had seen cool inflation the last two months, grew 0.4% in June. Household furnishings grew 1%. Video and audio electronics grew 1.1%."
Leor Tal, campaign director at the progressive advocacy coalition Unrig Our Economy, said in a statement that "today's inflation report confirms what we already knew: Trump's tariffs are a tax on working-class Americans and additional tariffs would hurt them even more."
"Republicans in Congress should intervene and put a stop to this, but so far they've just doubled down on policies that line the pockets of the ultra-rich while hurting hardworking families," said Tal.
"President Trump promised to bring prices down. Instead, he and Republicans have made things worse."
Democratic lawmakers immediately seized on the new government data as proof that, despite his campaign promises, Trump's agenda is driving up costs for American consumers—a problem that they said will intensify if the president follows through on the tariff threats he recently leveled at the European Union, Brazil, and other U.S. trading partners.
"For those saying we have not seen the impact of Trump's tariff wars, look at today's data," Sen. Elizabeth Warren (D-Mass.) said in a statement. "Americans continue to struggle with the costs of groceries and rent—and now prices of food and appliances are rising."
"Trump has announced even more tariffs, including 50% on Brazil and 30% on the European Union," Warren added. "Families were already getting crushed, and the president's making it worse."
Rep. Brendan Boyle (D-Pa.), the top Democrat on the House Budget Committee, warned that the Republican budget measure that Trump signed into law earlier this month—which includes trillions of dollars in tax cuts primarily for the wealthy and historic cuts to Medicaid and food assistance—"will raise costs even further, on everything from groceries to healthcare, all while showering billionaires with tax breaks."
"President Trump promised to bring prices down. Instead, he and Republicans have made things worse," said Boyle. "American families are already struggling, and they simply can't afford another round of this president's lies and his reckless economic policies."
"This decision will hurt people's financial futures, including their ability to buy a home, care for their families, or even get a job," said the president and CEO of the nonprofit Undue Medical Debt.
A Trump-appointed judge axed a Biden-era rule on Friday that would have removed medical debt from credit reports and barred lenders from using certain medical information in loan decisions.
The rule, enacted under the authority of the Fair Credit Reporting Act, would have removed an estimated $49 billion in medical bills from the credit reports of about 15 million people.
But after a lawsuit brought by two industry groups with the support of Republicans in Congress who attempted to block it, Judge Sean Jordan of the U.S. District Court of Texas' Eastern District ruled that the Consumer Financial Protection Bureau (CFPB) had exceeded its authority in introducing the rule.
According to the CFPB, those with medical debt on their credit reports would have received a 20-point boost to their credit scores on average as a result of the rule. It would have led to an estimated 22,000 more mortgages being approved for people struggling with medical debt.
According to a report by the Peterson Center on Healthcare and KFF last year, roughly 1 in 12 adults has over $250 in unpaid medical debt.
"People who get sick shouldn't have their financial future upended," said CFPB Director Rohit Chopra at the time of the rule's passage in January 2025. "The CFPB's final rule will close a special carveout that has allowed debt collectors to abuse the credit reporting system to coerce people into paying medical bills they may not even owe."
The consumer reports industry lobbied furiously against the measure. Two industry groups—the Consumer Data Industry Association and the Cornerstone Credit Union League—brought the lawsuit before Judge Jordan. Meanwhile, reporting from Accountable.US in March revealed that Republicans on the House Financial Services Committee accepted a combined $867,000 from trade groups opposed to the rule.
Using the same talking points as the industry, they then attempted to block the rule, arguing that it would "weaken the accuracy and completeness of consumer credit reports."
However, according to research by the CFPB, medical debt on credit reports often has no bearing on a person's ability to pay back other loans.
Medical bills also frequently contain mistakes. According to a survey by the Commonwealth Fund last year, more than 45% of respondents were billed for a service they thought was covered by insurance. The trade magazine Becker’s Hospital Review, meanwhile, has estimated that 80% of medical bills contain errors that inflate costs.
"Medical debt unjustly damages the credit scores of millions, limiting their ability to obtain affordable credit, rent safe housing, or even get a job," said the National Consumer Law Center after the rule was introduced.
Now, as a result of its being struck down, the 15 million Americans who have medical debt on their credit reports will see an average of $3,200 remaining on their reports that would have otherwise been erased.
"The facts are clear: Medical debt is not predictive of creditworthiness," said Allison Sesso, the president and CEO of the nonprofit Undue Medical Debt, on Monday. "This decision will hurt people’s financial futures, including their ability to buy a home, care for their families, or even get a job—all because they got sick, injured, or were born with a chronic condition through no fault of their own. It will also further decrease their willingness to get the care they need."
The ruling also marks the latest attack by Republicans on the CFPB. In February, the Trump administration attempted to unilaterally and illegally shut down the consumer watchdog agency. His effort to dismantle it was later blocked by a federal judge.
Since its creation in 2011, the CFPB has relieved $21 billion worth of debt for nearly 200 million Americans. It recouped that money from powerful financial institutions and credit card companies that had engaged in predatory practices and saddled Americans with junk fees.
But by cracking down on corporate abuses, it became the bane of Republican lawmakers and their corporate donors. Many top Trump donors sought to kill the CFPB because it was coming after the actions of their companies.
Elon Musk's company Tesla was facing scrutiny over its auto loan policies, which had received hundreds of complaints from customers. His social media company, X, was also being examined for its payment policies.
Another top Trump donor, investor Marc Andreesen, launched a broadside against the bureau when it ordered a payday lending company he'd invested in to pay tens of millions worth of fines for engaging in predatory lending.
"Judge Sean Jordan, a Trump-appointed judge, joined congressional Republicans in making it easier for the Trump administration to raise costs on millions of Americans," said Accountable.US executive director Tony Carrk.
"Not only are they dismantling healthcare for 17 million through their big, ugly betrayal, but they're dooming millions more with low credit scores due to illness and injury," he continued. "Republicans are holding a grudge against the CFPB, and it's costing Americans money."
"The Trump administration's deportation goals will cause a major blow to the U.S. labor market," according to a new analysis by the Economic Policy Institute.
If President Donald Trump succeeds at deporting millions of people over the next four years, his administration will be responsible for destroying millions of jobs and inflicting "immense pain" on both U.S.-born and immigrant workers.
That's according to a report published Thursday by the Economic Policy Institute (EPI), which bases its analysis on the Trump administration's privately stated goal of deporting at least 1 million immigrants during the Republican president's first year back in the White House.
Should the administration achieve that deportation objective each year for the remainder of Trump's term, "there will be 3.3 million fewer employed immigrants and 2.6 million fewer employed U.S.-born workers at the end of that period," wrote EPI senior economist Ben Zipperer.
"Employment in the construction sector will drop sharply: U.S.-born construction employment will fall by 861,000, and immigrant employment will fall by 1.4 million," Zipperer wrote. In late May, Immigration and Customs Enforcement (ICE) publicly touted its arrest of more than 100 construction workers in Tallahassee, Florida.
The millions of deportations desired by Trump and his deputies would also "eliminate half a million childcare jobs," EPI estimated.
Every state in the U.S. would be impacted by the president's attack on immigrants, according to Zipperer's analysis, but California, Florida, New York, and Texas would be most heavily impacted.
"The Trump administration's deportation goals will cause a major blow to the U.S. labor market," Zipperer wrote, "squandering the full employment that the Trump administration inherited from the Biden administration and also causing immense pain to the millions of U.S.-born and immigrant workers who may lose their jobs."
The EPI analysis comes days after Trump signed into law a sprawling budget measure that includes $75 billion in additional funding over the next four years for ICE, an agency whose current annual budget is around $10 billion. The $75 billion figure includes nearly $30 million for enforcement and deportation.
Immigrant rights groups and analysts warned following the Republican legislation's passage that the massive boost in ICE funding would supercharge Trump's mass deportation machine.
"There is a question of how quickly ICE can build up its infrastructure and personnel using its newfound resources," Vox's Nicole Narea wrote Thursday. "But just days after the bill passed, the administration made a show of force at Los Angeles' MacArthur Park on Monday, with heavily armed immigration agents in tactical gear and military-style trucks showing up to arrest undocumented immigrants."
Trump's mass deportation efforts are already having an impact on the U.S. economy, according to top officials and recent employment data.
During congressional testimony last month, Federal Reserve Chair Jerome Powell—against whom Trump frequently rails despite initially picking him for the job during his first White House term—said the president's draconian crackdown on immigration was "one of the reasons" for slowing U.S. economic growth.
Earlier this month, following the release of the June jobs report, labor economist Mark Regets told Forbes that "the data for the last five months indicate a serious fall in the number of immigrant workers."
"Despite growth in the unadjusted numbers, the U.S.-born labor force participation rate and the overall seasonally adjusted labor force total suggest that the loss of immigrant labor is not bringing more U.S.-born workers into the labor force," said Regets.
In a tacit admission that its mass deportation agenda is damaging employment in certain industries, the Trump administration reportedly instructed ICE officials last month to mostly pause raids on agricultural, hotel, and restaurant work sites.
"The reason why this is happening, not so subtly alluded to by Trump, is because Brazil actually held its right-wing coup leader accountable," said one critic.
After days of publicly railing against Brazil for the trial of its former leader, Jair Bolsonaro, U.S. President Donald Trump on Wednesday threatened the South American country with a 50% tariff "on any and all Brazilian products sent into the United States."
Far-right Bolsonaro, sometimes called the "Trump of the Tropics," lost Brazil's 2022 presidential election to leftist Luiz Inácio Lula da Silva, the recipient of the Wednesday letter that the U.S. president posted on his Truth Social network.
Bolsonaro is now facing a trial for alleged crimes, including an attempted coup d'état, following his reelection loss. The Brazilian's effort to cling to power was called "straight from Donald Trump's playbook," with critics worldwide pointing to the U.S. leader inciting the January 6, 2021 insurrection after his own electoral loss the previous November.
"This is a disgrace, just old-fashioned imperialism. A 50% tariff because Brazil's legal system has defended democracy."
In Truth Social posts on Monday and Tuesday, Trump blasted the trial as a "WITCH HUNT" and an "attack on a Political Opponent" while praising Bolsonaro as a "strong Leader, who truly loved his Country" and a "very tough negotiator on TRADE."
Echoing those posts, Trump wrote to Lula: "The way Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his Term, including by the United States, is an international disgrace. This Trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY!"
"Due in part to Brazil's insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans (as lately illustrated by the Brazilian Supreme Court, which has issued hundreds of SECRET and UNLAWFUL Censorship Orders to U.S. Social Media platforms, threatening them with Millions of Dollars in Fines and Eviction from the Brazilian Social Media market), starting on August 1, 2025, we will charge Brazil a Tariff of 50%," Trump continued.
Justice Alexandre de Moraes, the Brazilian Supreme Court justice overseeing Bolsonaro's case, was also involved in a legal battle that temporarily shut down the social media platform X in Brazil. The network, formerly known as Twitter, is owned by estranged Trump ally Elon Musk, the richest man on Earth. The weekslong suspension of X last year stemmed from the company's refusal to comply with an order to deactivate dozens of accounts accused of spreading disinformation.
Both Trump and Elon have used their power and platforms to go after Brazil. When Musk did it last year I spoke with some Brazilian media experts and journalists who explained that Brazil actually takes online disinformation and threats to their democracy seriously www.nbcnews.com/news/amp/rcn...
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— Kat Tenbarge (@kattenbarge.bsky.social) July 9, 2025 at 5:53 PM
Trump claimed in his letter to Lula that "these Tariffs are necessary to correct the many years of Brazil's Tariff, and Non-Tariff, Policies and Trade Barriers, causing these unsustainable Trade Deficits against the United States. However, The Guardian noted, "the U.S. runs a trade surplus with Brazil, thanks in part to a free-trade agreement expanded in 2020, during Trump's first term."
The newspaper pointed to data on Brazil from the website of United States Trade Representative Jamieson Greer:
U.S. total goods trade with Brazil were an estimated $92 billion in 2024. U.S. goods exports to Brazil in 2024 were $49.7 billion, up 11.3% ($5.0 billion) from 2023. U.S. goods imports from Brazil in 2024 totaled $42.3 billion, up 8.3% ($3.2 billion) from 2023. The U.S. goods trade surplus with Brazil was $7.4 billion in 2024, a 31.9% increase ($1.8 billion) over 2023.
Various journalists and other critics also highlighted the surplus. Michael Reid, a writer and visiting professor at the London School of Economics and Political Science, said on social media: "This is a disgrace, just old-fashioned imperialism. A 50% tariff because Brazil's legal system has defended democracy. And by the way, the U.S. has a trade surplus with Brazil."
Politico reported that "the overtly political tone of the letter is a break with more than a dozen other letters Trump has sent to foreign governments this week, threatening to impose new tariff rates on their exports to the U.S. beginning August 1."
While Trump's letter to Brazil has overtly political motivations, he also said during a Tuesday Cabinet meeting that he would target the entire BRICS economic group of emerging market nations, which began with Brazil, Russia, India, China, and South Africa, and now also includes Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.
"If they're a member of BRICS, they are going to have to pay a 10% tariff, just for that one thing—and they won't be a member long," Trump said, according to CNN. "BRICS was set up to hurt us, BRICS was set up to degenerate our dollar and take our dollar, take it off as the standard."