Trump’s US Economy Claims Largely Disproven
Recent statements made by former President Donald Trump regarding the U.S. economy have drawn scrutiny and fact-checking efforts. During a media address marking the anniversary of his second term, Trump presented several claims that were quickly disproven by various sources. This article examines those claims and presents accurate economic data.
Key Claims About Inflation and Drug Prices
Trump asserted that there is “no inflation” in the United States and that drug prices have decreased by as much as 600 percent. Both claims have been found to be inaccurate. According to the Bureau of Labor Statistics (BLS), core inflation has been consistently recorded at 2.6 percent year-over-year for November and December. In contrast, Trump’s statement suggested a core inflation rate of only 1.6 percent.
- Core Inflation Rates: 2.6% (not 1.6% as claimed)
- Overall Inflation Increase: 2.7% compared to the previous year
Regarding drug prices, while the “most favored nation” program aims to lower costs, reductions exceeding 100 percent are impossible. Trump’s percentages were unfounded and misleading.
Tariffs and Legal Matters
Trump commented on a Supreme Court case concerning his tariffs. He claimed the U.S. could face refunds if the court rules against him. This claim is only partially accurate, as refunds on tariffs would indeed be required but are contingent on the court’s decision. Treasury Secretary Scott Bessent signaled that the government might have to refund about half of the collected tariffs.
Furthermore, Trump claimed that his successor, President Joe Biden, imposed no tariffs. This assertion is incorrect. Biden has implemented significant tariffs since taking office, including:
- 2022: 35% tariffs on Russian imports
- 2024: Increase of Canadian lumber tariffs from 8.5% to 14.5%
- 2024: 100% tariffs on electric vehicles from China
- 2024: 25% on steel and aluminum, and 50% on semiconductor chips
Employment and Job Growth
Trump’s administration boasted the removal of over 270,000 federal jobs. However, a report from the BLS indicates that the federal government has indeed cut 277,000 jobs since January 2025. Despite this, job growth in the private sector has been limited, particularly in tariff-affected industries. In recent reports, only 50,000 jobs were added to the economy, primarily in food service and healthcare.
- 2025 Job Gains: 50,000 total jobs added
- Industries with Gains:
- Food Service: 27,000 jobs
- Healthcare: 34,000 jobs
- Comparison: 584,000 jobs added in 2025 vs. 2 million in the previous year under Biden
Gas Prices and Manufacturing Investment
Trump claimed gas prices are as low as $1.99 per gallon in certain states. However, data from the American Automobile Association (AAA) reveals that the national average is approximately $2.82, with the lowest prices in Oklahoma at $2.31.
Trump also claimed that more car factories are being built than ever before. However, economic experts noted a decline in nominal spending on new manufacturing buildings related to transportation equipment. Oxford Economics reported that spending decreased from a peak of $16.6 billion annualized in April 2024 to $14.4 billion in 2025.
Conclusion
In summary, Donald Trump’s assertions concerning the U.S. economy are largely disproven. Accurate statistics present a different narrative than the one he portrayed. It is essential for the public to remain informed about the real state of the economy through reliable data and fact-based reporting.
