EconomyCheck

Trump’s Take vs. Economic Reality

Trump says tariffs are bringing in record-breaking revenue — and technically, that’s true. With new tariffs on China, steel, aluminum, and more on the table, government income from tariffs is up.

But here’s the catch: it’s U.S. importers, not China, footing the bill. And when costs rise for businesses, they often pass that on to consumers.

“Prices are going down,” Trump claims...
Sure, inflation dipped slightly in March — overall prices fell 0.1%, mainly thanks to cheaper gas and used cars.

But dig deeper:
Grocery prices? Still climbing.

In March, food prices rose 0.5%

Eggs? Over $6/dozen

Analysts estimate new tariffs could cost the average family an extra $185/year just on groceries

Gas is cheaper... for now.
Falling gas prices helped soften inflation, but with proposed tariffs on oil imports from Canada and Mexico, that could flip. Experts warn of a potential 5% jump at the pump if they go through.

Core inflation is slowing, which is good.
Excluding food and energy, inflation is the lowest it’s been since 2021 — a hopeful sign that the Fed’s policies are making a dent. But relief hasn’t hit everyone yet.

Markets are reacting — and not in a good way.
With renewed tariff talk, Wall Street’s on edge:

Stock prices slipping

Gold surging

Investors bracing for economic turbulence

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So yes, Trump’s not entirely wrong — tariffs are generating revenue. But zoom in, and it’s clear the picture is more complex. While some prices are falling, key costs like food are rising. And the longer-term impact of these tariffs could be much deeper than it seems right now.

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