Fact-Checking President Trump’s Economic Claims in Iowa Speech

President Trump made several notable economic claims during his Tuesday speech in Clive, Iowa, that warrant closer examination, particularly regarding inflation rates and manufacturing developments by John Deere.

During his address, Trump stated that his administration inherited record-level inflation when he took office in January 2025, claiming, “12 months ago, Joe Biden handed us a mess. We inherited the legacy of record-high inflation, the highest inflation in the history of our country.”

However, Trump immediately corrected himself, acknowledging that the inflation peak in 2022 was actually the highest in approximately 40 years, not in the entire history of the United States. This correction is significant, as the distinction between “highest ever” and “highest in 40 years” substantially changes the historical context of the economic situation.

More importantly, economic data suggests Trump’s initial claim was misleading. According to the U.S. Bureau of Labor Statistics, inflation had stabilized in the year leading up to Trump’s return to office, consistently remaining below 3.5 percent. While the economy had indeed experienced near-record inflation levels in 2022, by the time of the presidential transition, inflation had moderated to approximately 3 percent—far from the crisis levels implied in the president’s remarks.

The president also highlighted manufacturing developments by agricultural equipment giant John Deere. “John Deere’s doing 70 million dollars of factory in North Carolina. Brand new, the best in the world. And I think it’s gonna pay off very, very big. And if it doesn’t, I have nothing to do with it,” Trump stated.

During his remarks, Trump suggested his administration’s tariff policies were responsible for spurring this investment. However, the timeline indicates the North Carolina project predates his current term. Deere had already announced plans for the $70 million facility, which will produce small excavators, as far back as May 2024, with construction scheduled to begin in late 2024—all during the Biden administration.

When Reuters sought clarification from Deere following Trump’s speech, the company confirmed that “some of its plans for North Carolina had been disclosed earlier by officials,” suggesting the project was indeed in motion before the current administration took office. The facility is expected to become operational next year.

The comments about John Deere take on additional significance when considering the company’s recent workforce reductions. Despite the North Carolina expansion, Deere, which maintains its headquarters in the Quad Cities along the Iowa-Illinois border, has cut approximately 2,000 jobs since the beginning of 2024, with many of those positions eliminated in Iowa—the very state where Trump was speaking.

The contrast between celebrating a manufacturing investment in North Carolina while not addressing significant job losses in the Midwest highlights the complex economic realities facing American manufacturing, particularly in the agricultural equipment sector where market conditions, trade policies, and automation continue to reshape employment patterns.

These fact-checking points underscore the importance of scrutinizing economic claims made by political figures, regardless of party affiliation, especially when they involve key indicators like inflation that directly affect American consumers and businesses. As the administration continues implementing its economic agenda, metrics like inflation rates and manufacturing employment will provide concrete measures of policy effectiveness beyond rhetorical claims.