Donald J. Trump’s X post claims the U.S. is collecting record tariff revenue while costs of goods like gasoline and groceries are dropping, alongside reduced inflation, aligning with his campaign promises of economic improvement through trade policies.
Trump’s tariff strategy includes a 90-day pause on broad tariffs (except for China) to negotiate trade deals, but his administration has intensified tariffs on Chinese imports to 145%, escalating tensions as China retaliates with 125% duties on U.S. goods.
Despite Trump’s claim of reduced inflation, economic theory from the IMF suggests tariffs can lead to “cost-push” inflation by raising production costs, contradicting the post; data from the Economic Policy Institute notes Trump’s first-term tariffs had no clear correlation with inflation, supporting his narrative to an extent.
