The Producer Price Index, a closely watched measurement of wholesale inflation, showed Thursday that the prices paid to US producers dropped 0.5% in April from the month before, a much softer reading than economists expected, while inflation slowed on an annual basis to 2.4%, from 2.9% in March, according to Bureau of Labor Statistics data.

Trump's sweeping tariffs are economically damaging, raising costs for consumers and businesses, and risk triggering a global trade war and recession. The unpredictability and amateurish execution of these tariffs create unprecedented uncertainty, discouraging long-term investment and threatening equity valuations.

Tuesday's report could provide an early read on how Trump's duties will affect the prices Americans pay for necessities and other goods such as clothing, shoes, furniture and even groceries.

The Consumer Price Index jumped 2.3% in April from the year before, below March’s 2.4% increase, the Bureau of Labor Statistics said Tuesday.

President Trump repeated his call for the Federal Reserve to cut interest rates after April's inflation report was cooler than expected.

Inflation rose less than expected in April, as prices rose 2.3% over the year, down from 2.4% in March. Prices for gas and groceries fell, but housing and eating at restaurants got more expensive. Inflation was slightly milder than forecasters had expected, before consumers faced the full brunt of President Donald Trump's import taxes.

The U.S. collected $7.6 billion more in customs duties in April than it did in March, the Treasury said Monday, as revenue from tariffs on imported goods ramped up sharply. Gross customs duties collected in April reached a monthly record of $16.

Broken down by category, some of the sectors most impacted by tariffs saw a price decline from last month, including apparel and used cars and trucks.