Iran War and Trump’s Tariffs Threaten a Resilient U.S. Economy

A few short weeks ago, the U.S. economy seemed to be catching a summer break.

The war with Iran appeared to be waning. Energy markets had started to calm. Prices at the gas pump had fallen, and across the economy, inflation had begun to cool.

It amounted to a welcome respite for American families and businesses, which had weathered more than a year of shocks that began with President Trump’s global trade war.

But the reprieve did not last.

A widening military conflict with Iran entered a dangerous new phase this week, spooking energy markets and sending global oil prices to $100 a barrel. The anxiety spilled into gas prices, which topped $4.10 a gallon in much of the country, according to AAA. And the tumult coincided with the return of Mr. Trump’s trade brinkmanship, as the White House formalized a slate of new tariffs on dozens of countries on Friday.

The duties apply to some of the largest U.S. trade partners, including the members of the European Union, which the president has since threatened with an additional round of trade penalties. Tariffs are taxes that apply to imported goods, so Mr. Trump’s actions threatened to again raise costs for some American companies and consumers.

Article source: https://www.nytimes.com/2026/07/24/business/iran-war-tariffs-economy.html