Donald Trump, the President of the United States, has praised his country's economic performance ahead of the congressional midterm elections, stating that incomes have risen, inflation has decreased, and new jobs have been created. He proudly says, "We have the most prosperous country in the world."
Economic Growth and Inflation Challenges
Despite the overall state of the U.S. economy being better than many critics expected after the implementation of widespread tariffs known as "Freedom Day" in 2025, evidence shows that these import duties and the consequences of the U.S.-Israel war with Iran have increased inflation, and American households are feeling the effects.
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Recent data shows that the U.S. Gross Domestic Product is growing at an annual rate of 2.2%. This growth rate has increased by about 3.2% since the end of 2024, just before the start of Trump's second presidential term. The growth rate in the U.S. has been faster than the International Monetary Fund's predictions, which initially forecasted a negative impact of import tariffs on investment and consumer spending.
Effects of War and Energy Prices
The war with Iran, which has caused serious disruptions in oil and fuel supply from the Middle East, has driven up global energy prices and contributed to rising domestic inflation in the U.S. In September, the price of diesel reached an unprecedented $1.72 per liter. Additionally, some retailers have warned that rising energy prices will increase the cost of food production, leading to higher prices for consumers in stores.
The average income of American households during Trump's term continues to rise, with the median income adjusted for inflation reaching $87,460, the highest recorded figure to date. However, the financial situation of the middle fifth of households is, on average, $1,700 worse than it could have been.
Trump had predicted that by relocating manufacturing plants to U.S. soil, his tariffs would bring a "flood of job opportunities" to the United States. However, in practice, the creation of new jobs has been far less than expected.
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