Fact Check: Examining Trump’s Economic Claims in Detroit Speech

In a speech to the Detroit Economic Club on Tuesday, President Donald Trump made numerous false claims about inflation, economic growth, and other issues, straying significantly from factual data in his remarks.

The latest Consumer Price Index report, released the same day as Trump’s speech, directly contradicts his assertion that “inflation is stopped.” The data shows consumer prices increased by 2.7% year-over-year in December, with a 0.3% rise from November. This continuing inflation trend undermines Trump’s claims about price reductions during his presidency.

Contrary to the president’s statements, overall consumer prices have increased approximately 2.2% since his inauguration in January 2025. While some products have become less expensive, the majority have seen price increases during his term.

Trump’s assertion that “grocery prices are starting to go rapidly down” is particularly at odds with economic reality. The December inflation report revealed grocery prices jumped 0.7% from November to December—the fastest month-to-month increase in more than three years—and stand 2.4% higher than one year ago.

The president made mathematically impossible claims about prescription drug pricing, suggesting prices would fall by “thousands of percents” due to his “Most Favored Nation” policy. Basic mathematics demonstrates that even if drug prices fell to zero, that would represent only a 100% reduction, making Trump’s statements of “300, 400, 500 and even 600%” price reductions factually impossible.

When discussing economic growth, Trump incorrectly claimed, “We have the highest growth we have ever had.” While the third quarter of 2025 showed strong 4.3% annualized GDP growth, this rate is far from historic. The economy grew substantially faster during the post-pandemic recovery in 2020 and 2021, and numerous previous periods in American history saw higher growth rates.

The president’s statements on gas prices require context. While he claimed prices are “under $2 in many places,” national data shows no state averaging below $2 per gallon. According to GasBuddy, only about 464 stations nationwide—roughly 0.3% of stations tracked—were selling gas below $2 per gallon on Tuesday. The national average was $2.82, down from $3.08 when Trump took office in January 2025.

Trump repeated the common misconception that “China is one of our biggest taxpayers right now” due to tariffs. In reality, US importers pay these tariffs, often passing costs to American consumers—not Chinese entities.

On social security taxation, Trump overstated his policy achievement. The 2025 tax bill created a temporary $6,000 annual deduction for individuals 65 and older, with lower deductions for those earning over $75,000. However, this falls short of his claim of “no tax on Social Security for our seniors,” as millions will continue paying taxes on benefits.

The president’s assertion that eliminating fraud would balance the federal budget doesn’t align with fiscal reality. While government fraud losses are substantial—estimated between $233 billion and $521 billion annually—they represent only a fraction of the $1.8 trillion federal deficit for the most recent fiscal year.

Trump made several false claims about electoral history, incorrectly stating he won Michigan in 2020 and won the national popular vote in all three of his presidential campaigns. Official records show he lost Michigan to Joe Biden in 2020 by 154,188 votes and lost the national popular vote in both 2016 and 2020.

On immigration, Trump significantly inflated migration numbers under the Biden administration, claiming “25 million people” entered the country. Federal data shows under 11 million nationwide migrant “encounters” through December 2024, with many of those individuals quickly expelled.

His claims about “11,888 murderers” admitted as migrants misrepresents federal data. This figure includes non-citizens who entered over multiple decades, including during Trump’s first term, who were convicted of homicide (usually after arrival), and remain on Immigration and Customs Enforcement’s non-detained docket—including those currently serving prison sentences.

The president’s repeated assertions about Venezuela emptying prisons into the United States remain unproven despite multiple requests for evidence. Experts including Roberto Briceño-León, director of the Venezuelan Observatory of Violence, have stated they have no evidence supporting this claim.

Trump significantly exaggerated American casualties during the Panama Canal construction, claiming “36,000 people” were lost. Historical records indicate approximately 5,600 died during the American construction phase (1903-1914), with only about 350 being white Americans.

His claim to have “ended eight wars” includes conflicts that never occurred during his presidency, disputes that weren’t actual wars, and conflicts that have continued despite peace agreements. While Trump has played a role in resolving some international conflicts, the claim of eight wars ended is unsupported by facts.