Fact Check: Trump’s Economic Claims Fall Short of Reality

President Donald Trump made several claims about the U.S. economy during a lengthy press conference marking his first year back in office, but many of his statements don’t align with official data and economic realities.

Speaking to reporters in a wide-ranging address, Trump asserted there was “no inflation” in the United States and claimed drug prices had fallen by up to 600 percent under his administration. However, an examination of his economic statements reveals significant factual inaccuracies.

Contrary to Trump’s claims about inflation, the Bureau of Labor Statistics (BLS) reports that core inflation stood at 2.6 percent year-over-year in both November and December. The overall inflation rate increased by 2.7 percent compared to the same period last year. No core consumer price index report was released for the previous month due to the federal government shutdown, which became the longest in U.S. history.

Trump’s assertion about drug price reductions under his “most favored nation” program demonstrating decreases of “300, 400, 500, 600 percent” fails basic mathematical scrutiny. A 100 percent price reduction would mean medications were free; anything beyond that would require pharmaceutical companies to pay consumers to take their products.

Regarding tariffs, the president addressed a pending Supreme Court case that will determine the legality of his use of the International Emergency Economic Powers Act to impose import duties. While Trump’s statement that the U.S. might need to return money if the court rules against him is partially accurate, the details remain unclear. Treasury Secretary Scott Bessent previously indicated the government could be required to refund approximately half of collected tariffs, while White House economic adviser Kevin Hassett has mentioned the administration is exploring alternative legal pathways to impose tariffs if blocked by the court.

Trump’s claim that his predecessor “did not do tariffs” is demonstrably false. The Biden administration implemented multiple tariff policies, including 35 percent duties on Russian imports following Moscow’s invasion of Ukraine in 2022. In 2024, Biden increased tariffs on Canadian lumber from 8.5 to 14.5 percent, continuing a Trump-era policy. That same year, Biden also imposed significant tariffs on Chinese goods, including 100 percent on electric vehicles, 25 percent on steel and aluminum, and 50 percent on semiconductor chips.

While the federal government has indeed cut 277,000 jobs since January 2025 as Trump stated, his suggestion that these workers are transitioning to robust private sector growth isn’t supported by employment data. Recent job reports show limited growth in tariff-exposed industries, with the economy adding just 50,000 jobs in the most recent period. The largest gains came in food service (27,000) and healthcare (34,000). Overall, the U.S. economy has added 584,000 jobs in 2025—significantly lower than the two million created during Biden’s final year.

The president’s claim about gas prices reaching $1.99 per gallon in some states contradicts data from the American Automobile Association, which reports the national average at $2.82 per gallon. Even Oklahoma, the state with the nation’s lowest prices, still averages $2.31 per gallon.

Trump’s assertion that more car factories are being built in the U.S. than ever before also doesn’t hold up to scrutiny. Oxford Economics, which tracks private construction spending on transportation equipment factories, reports that nominal spending on manufacturing structures related to transportation equipment has actually declined from its peak in 2024. While companies like Hyundai and Stellantis have increased investments in U.S. manufacturing, these represent expansions of existing facilities rather than unprecedented growth in new factory construction.

According to Bernard Yaros, lead U.S. economist at Oxford Economics, spending peaked at $16.6 billion annualized in April 2024 during the Biden administration and has since fallen to $14.4 billion annualized under Trump’s second term.

As the president’s economic claims continue to face scrutiny from fact-checkers, the gap between his rhetoric and economic reality remains a persistent feature of his communications strategy.