U.S. wholesale prices dropped unexpectedly in April for the first time in more than a year despite President Donald Trump’s sweeping taxes on imports.

The producer price index — which tracks inflation before it hits consumers — fell 0.5% last month from March and rose 2.4% from April 2024, the U.S. Labor Department reported Thursday.

Excluding volatile food and energy prices, so-called core wholesale prices dipped 0.4% from March and rose 3.1% from a year earlier.

Economists had expected that producer prices rose modestly in April. A 0.7% drop in services prices brought the index down.

On Tuesday, the Labor Department reported that consumer prices rose just 2.3% last month from April 2024 — smallest year-over-year gain in more than four years.

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Economists have predicted that Trump’s tariffs would drive up prices, and many expect the impact to show up in June or July.

Still, Trump’s tariffs are ever-changing, so it’s hard to forecast their economic impact. On Monday, for instance, Trump unexpectedly agreed to a massive de-escalation of his trade war with China — third-biggest source of U.S. imports — by scaling back his taxes on Chinese products to 30% from 145%; China slashed its retaliatory tariffs on U.S. products from 125% to 10%.