Recent claims by U.S. President Donald Trump regarding the economy have drawn scrutiny for lacking factual accuracy. During a media address marking the anniversary of his second term, Trump made various statements that have been fact-checked and found to be mostly false.
Inaccurate Claims on Inflation
Trump asserted that there is “no inflation” in the United States. However, data from the Bureau of Labor Statistics (BLS) reveals a different story. Core inflation stood at:
- 1.6% for three months preceding the address
- 2.6% in November and December year-over-year
- Overall inflation increased by 2.7% compared to the previous year
Error on Drug Prices
The President claimed significant reductions in drug prices under his administration’s “most favored nation” program, stating drops of “300 to 600 percent.” This assertion is misleading, as a price reduction exceeding 100% is mathematically impossible.
Supreme Court Ruling on Tariffs
When discussing a pending Supreme Court case about tariff imposition under the International Emergency Economic Powers Act (IEEPA), Trump suggested that the U.S. would need to return money if the court ruled against his administration. This claim is partially accurate, as a ruling against the administration could necessitate refunding some collected tariffs. In September, Treasury Secretary Scott Bessent estimated refunds could be around half of the tariffs collected.
Misleading Statements About Tariffs on Imports
Trump also claimed that former President Joe Biden “did not do tariffs,” which is incorrect. Biden has imposed several tariffs, including:
- 35% tariffs on Russian imports in response to the invasion of Ukraine
- Increased tariffs on Canadian lumber from 8.5% to 14.5%
- Multiple tariffs on Chinese imports, notably 100% on electric vehicles
Employment Claims
While Trump stated that his administration cut over 270,000 government jobs, the BLS reports a reduction of 277,000 federal jobs since January 2025. Job growth in the private sector has been limited, particularly in industries exposed to tariffs. The economy added only:
- 50,000 jobs in the latest report
- 27,000 in food service
- 34,000 in healthcare
In total, the U.S. economy added 584,000 jobs in 2025, a stark decline from the two million jobs created in the prior year under Biden.
Gas Prices Misrepresentation
Trump claimed gas prices were as low as $1.99 per gallon in some states. However, according to the American Automobile Association (AAA), the average gas price is currently $2.82, with the lowest reported price found in Oklahoma at $2.31.
Manufacturing Investments
Regarding the automotive industry, Trump expressed optimism that more car factories are being built in the U.S. than ever before. Nevertheless, Oxford Economics indicates that while investments have increased, nominal spending on transportation equipment manufacturing has declined from its peak in 2024. The figures reveal a drop from:
- $16.6 billion annualized in April 2024 to $14.4 billion annualized currently
These economic claims by Trump have sparked debate and concern over their accuracy and implications for public understanding of the U.S. economy.
