President Donald Trump’s weekend announcement of tariffs on Mexico, Canada and China translated into a shock for market-based inflation expectations, prompting traders to now expect an annual headline rate from the consumer-price index that’s closer to 3% for much of 2025.

President Donald Trump’s plans to impose tariffs on some of the US’s largest agricultural trade partners next month threaten to upend markets and unleash food-price inflation.

Donald Trump halted sweeping tariffs on Mexico hours before they were due to come into force, causing markets to whipsaw as investors and companies struggled to absorb a flurry of White House policy announcements.