PROVIDENCE, RI – U.S. prices continued to rise in July as President Trump’s reckless tariff taxes increase consumer costs and harm American workers and businesses. Prices were 2.7 percent higher last month compared with a year ago, and core inflation went up at an even higher pace over the previous month.

U.S. Senator Jack Reed (D-RI) says that instead of burdening Main Street businesses, the Trump Administration should be lowering costs for Americans and incentivizing productivity, employment, and wage growth. Today, Senator Reed issued the following statement:

“President Trump is mismanaging his trade wars and failing to deliver on his promise to lower costs for average Americans. Time and again, on issues ranging from health care to public education to scientific research, President Trump is choosing special interests and raising costs for families.

“At a time when many feel the economy is rigged against them, President Trump is making it worse. The uncertainty, rising prices, and cancelled reservations are hitting home for millions of Main Street businesses. His undisciplined, unfocused approach is whacking American jobs, not re-shoring them. Instead of real job growth we’re seeing an uptick in layoffs and furloughs, and a ‘shoot-the-messenger’ approach to firing the BLS data chief instead of enacting effective policies to improve real world conditions for working Americans.

“Due to Trump’s erratic economic and trade policies, small businesses are facing increased operating expenses, higher borrowing costs, and, in many cases, fewer customers willing to pay higher prices as Trump alienates America’s friends and allies.

“And while Trump hands out special favors and exemptions to his billionaire backers and corporate lobbyists, American small businesses are getting left out to dry. These small businesses are going to have to start charging their customers more than they ever did before. And this is because they are facing a decision between raising costs or going belly up. Not because of poor planning, products, or bad budgeting on their part – it’s Trump’s reckless policies and tariff tax whims that are creating serious economic drags across industries.

“From their morning coffee to medical care to housing to groceries and electricity bills, American consumers are being forced to shell out more each month. The Budget Lab at Yale estimates the short-term price impact of Trump’s tariff taxes is equivalent to an average per household income loss of $2,400.

“Meanwhile, President Trump is enriching himself. He took a ‘so-called free’ luxury jet from the Qatari government and will have U.S. taxpayers foot the bill for nearly $1 billion in retrofits with the expectation that it will be his personal plane post-presidency. Meanwhile, his family’s dubious, new crypto venture has generated $4.5 billion for the Trumps since the election, according to press reports.

“The United States has too much going for it to be stuck in this economic rut. President Trump must stop pushing short-sighted, misguided proposals and budgets that are increasing prices and the debt, disproportionately harming small businesses and everyday Americans, and making the cost of living even higher.”