United States President Donald Trump has made a variety of claims concerning the state of the US financial system.
In an extended and meandering deal with to the media on Tuesday, the primary 12 months anniversary of his second time period as president, Trump’s claims ranged from there being “no inflation” within the US to drug costs being slashed by as a lot as 600 p.c. Most claims had been factually inaccurate.
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Al Jazeera examined a few of his statements on the financial system:
Core inflation has been at 1.6 p.c for the previous three months, and there’s “no inflation”.
Each claims are false. Core inflation in November and December stood at 2.6 p.c 12 months over 12 months, based on the Bureau of Labor Statistics (BLS).
A core client worth index (CPI) report was not launched for the month earlier than as a result of federal authorities shutdown, the longest in US historical past.
Total, inflation rose by 2.7 p.c in contrast with the identical interval final 12 months.
Drug costs beneath Trump’s “most favored nation” programme are down by “300, 400, 500, 600 p.c”.
That is incorrect. Whereas the programme is meant to decrease drug costs, reductions past one hundred pc are mathematically unattainable.
A one hundred pc worth discount would imply a product is free. Something past that might require pharmaceutical corporations to pay customers to take their merchandise.
Pending Supreme Courtroom ruling on tariffs:
Trump addressed a pending Supreme Courtroom case that can rule on the legality of his use of the Worldwide Emergency Financial Powers Act (IEEPA) to impose tariffs. He claimed the US must return cash if the courtroom guidelines towards his administration.
That is partially correct however unclear. If the courtroom guidelines against the administration, the US would want to refund a number of the cash importers paid in tariffs. In September, Secretary of the Treasury Scott Bessent stated the federal government could possibly be required to refund roughly half of the tariffs it collected.
The White Home’s financial adviser, Kevin Hassett, has stated the administration is exploring different authorized avenues to impose tariffs if the courtroom blocks the present plan.
Former President Joe Biden “didn’t do tariffs”.
That is false. Biden imposed multiple tariffs throughout his administration. In 2022, he imposed 35 p.c tariffs on Russian imports as a part of sanctions following Moscow’s full-scale invasion of Ukraine.
In 2024, Biden raised tariffs on Canadian lumber to 14.5 p.c from 8.5 p.c, persevering with a Trump-era coverage.
That 12 months, he additionally imposed tariffs on China, together with one hundred pc on electrical automobiles, 25 p.c on metal and aluminium, and 50 p.c on semiconductor chips.
Trump administration eliminated greater than 270,000 bureaucrats from the federal authorities, however they will the non-public sector.
The federal authorities has lower 277,000 jobs since January 2025, based on the BLS. However information exhibits restricted progress within the non-public sector, particularly in tariff-exposed industries.
In the latest jobs report, the US financial system added 50,000 jobs. The most important positive factors had been in meals service, which added 27,000 jobs, and healthcare, which added 34,000 jobs.
The US financial system added 584,000 jobs in 2025. That is considerably decrease than the 2 million created the 12 months earlier than, beneath Biden.
Fuel costs are at $1.99 per gallon in some states
That is inaccurate. In accordance with the American Vehicle Affiliation (AAA), which tracks fuel costs, the typical worth for a gallon of fuel is $2.82. The most affordable fuel costs are within the state of Oklahoma, at $2.31.
Extra automobile factories are being constructed within the US now than ever earlier than.
Oxford Economics tracks non-public building spending on transportation tools factories. In 2025, nominal spending on manufacturing buildings associated to transportation tools was down from its peak in 2024, it stated.
Trump has been making claims like this for near a 12 months. Auto trade specialists have lengthy stated they’re exaggerated, as a result of whereas corporations, together with Hyundai and Stellantis, have elevated investments in US manufacturing, these are additions to present vegetation.
Oxford Economics, which tracks non-public building on transportation tools, discovered that “nominal spending” in 2025 was trending downwards after hitting a peak through the closing 12 months of the Biden administration. It peaked at $16.6bn annualised in April 2024 and is now at $14.4bn annualised, Bernard Yaros, lead US economist at Oxford Economics, advised Al Jazeera.
