Washington, D.C. — A new Center for American Progress analysis finds that the Trump administration’s war with Iran and broad tariff agenda are driving up costs for Americans heading into Memorial Day and the summer travel season.
Rising oil prices tied to the conflict with Iran, combined with tariffs on imported goods, are increasing costs across the economy just as a projected 45 million Americans prepare for Memorial Day travel. Oil prices have jumped 53 percent since late February, while jet-fuel prices have risen 56 percent. Gas prices now exceed $5 per gallon in seven states.
“Families will be paying more throughout the summer because of the Trump administration’s economic agenda,” said Emily Gee, senior vice president for Economic Policy at CAP. “From filling up the car to booking a flight to buying groceries for a cookout, Americans are seeing prices pushed up by tariffs and an unnecessary conflict with Iran. Families are already worried about the cost of living, and the Trump administration’s policies are making everyday life more expensive.”
The analysis finds:
- Gasoline prices have surged by more than 51 percent since the Iran war began. The national average cost to fill a 16-gallon SUV tank increased by about $24.56 between February 27 and May 18, while filling a larger vehicle increased by about $55.26.
- Air travel is becoming significantly more expensive. Domestic airfare prices in April 2026 were 20.7 percent higher than a year earlier, with average domestic ticket prices estimated to have increased from $385.55 to $465.40.
- Memorial Day cookout staples are seeing steep price increases. Ground beef prices rose 18.9 percent over the past year, sirloin steak prices increased 19.5 percent, lettuce prices climbed 7.5 percent, and tomato prices surged 50 percent.
- Fuel and transportation costs are raising food prices across the board. Diesel prices have risen nearly 50 percent since late February, contributing to higher costs for refrigerated and transported produce such as tomatoes, blueberries, and raspberries.
- Americans were already struggling with affordability before these new price spikes. A January 2026 New York Times/Siena poll found that only 29 percent of voters said they could afford basic expenses without worrying about costs.
Read the full analysis: “The Trump Administration’s Tariffs and Iran War Will Cause Americans To Face Higher Prices This Summer” by Mimla Wardak and Amina Khalique
For more information on this topic or to speak with an expert, please contact Christian Unkenholz at [email protected].