Donald Trump is again in workplace—and again on social media—claiming he’s delivered main wins for the American client. In a current put up, he boasted, “The Trump Administration has gotten prices down, very considerably, for the American Shopper. There has by no means been something like this!”
Daring phrases. However do the receipts match the rhetoric?
Let’s break it down.
Since Trump’s second time period started in January 2025, there have been some worth drops in key areas. Gasoline costs are down almost 7%, and vitality prices have seen a 2% dip, giving people just a little aid on the pump and on their mild payments. Prescription drug costs additionally made headlines after posting the biggest month-to-month decline ever recorded earlier this 12 months. That’s actual financial savings for households who depend on treatment.
However don’t let these numbers distract from the complete image.
Trump’s aggressive new tariff insurance policies are beginning to hit exhausting. The share of imports now coated by tariffs? A staggering 71%, in comparison with simply 2.5% earlier than. Based on financial consultants, this transfer is anticipated to price the common American family between $3,100 and $4,900 per 12 months. These added prices typically present up quietly—on groceries, electronics, on a regular basis necessities.
And whereas Trump talks about controlling inflation, the Fed’s most well-liked inflation tracker—core PCE—was up 2.7% in Could, above the best 2% benchmark. Translation: costs are nonetheless rising, particularly in areas like meals and housing.
Which may clarify why client spending dipped 0.1% in Could—persons are merely tightening up.
So whereas Trump is taking credit score for reducing costs, the actual story is much more difficult. Sure, there have been good points on fuel and drugs. However with inflation staying sticky and tariffs piling on further prices, many Individuals are nonetheless feeling the monetary squeeze.
