President Donald Trump claimed on Truth Social that the U.S. economy is performing exceptionally well, writing, “JUST OUT: Good news for the Holiday Season. EARLY PRICES ARE DOWN, WHILE TARIFFS ARE MAKING OUR COUNTRY AN ECONOMIC POWER AGAIN. Also, virtually NO INFLATION, AS STOCK MARKETS CONTINUALLY HIT RECORD HIGHS. THE BEST OF ALL WORLDS FOR THE U.S.A.”
Fox News commentator Jessica Tarlov responded on X by sharing a screenshot of Trump’s post and calling him “Totally divorced from reality.”
Tarlov, a frequent critic of Trump’s rhetoric, has consistently pushed back on what she sees as misleading claims about the economy.
Her response highlighted frustration shared by many who believe the president is ignoring real-world challenges like rising household costs and job insecurity.
Tariffs Drive Prices Higher
A recent Financial Times report found that Trump’s sweeping new tariffs are beginning to raise prices on everyday goods, including soup, tools, and car parts.
After initially absorbing the extra costs, many businesses are now passing them on to consumers.
Data from the Bureau of Labor Statistics showed that, over the six months to August, prices for audio equipment rose by 14 percent, dresses by 8 percent, and hardware and supplies by 5 percent.
Mark Mathews, chief economist at the National Retail Federation, told the outlet, “Over the past two years, goods inflation has been about zero. We are beginning to see goods inflation creep up.”
Businesses Respond to Higher Costs
Retailers like Costco, Ashley Furniture, and AutoZone have changed how they price and stock products to deal with the tariffs.
Costco scaled back on imported holiday goods to limit its exposure, while Ashley Furniture said it would raise prices on most items by 3.5 to 12 percent.
Ashley CEO Todd Wanek said in a customer notice that the “ongoing tariff situation has created significant challenges with cost impacts across our industry.”
AutoZone CEO Philip Daniele told analysts that “there probably will be more” price increases as the full effect of tariffs sets in.
Coffee and canned food prices have also risen, partly because of tariffs on imports from major suppliers such as Brazil and higher costs for tin-plate steel used in food cans.
Carrie Anderson, Campbell Soup’s chief financial officer, said the company would need to make “some surgical price increases” due to these pressures.
Economists Warn of More to Come
Although headline inflation stood at 2.9 percent in August, experts say the full impact of tariffs has not yet reached consumers.
Nathan Sheets, global chief economist at Citigroup, estimated that U.S. consumers currently pay 30 to 40 percent of the tariff costs, but that share could climb to 60 percent in the coming months.
“We think there is more to come for the consumer,” Sheets told Citi clients.
The combination of rising grocery bills, higher electricity costs, and job losses has drawn political reactions.
California Gov. Gavin Newsom posted on X, “Bad news for the Holiday season. INFLATION UP. GROCERIES UP. ELECTRICITY BILLS UP. RECORD JOB LOSS. Donald Trump is lying to you.”
Despite Trump’s claims that the economy is thriving, recent data and industry reports tell a different story.
Rising prices and shifting business strategies across retail, manufacturing, and consumer goods support the criticism from figures like Tarlov and Newsom, who argue the president’s economic message doesn’t reflect what’s really happening in people’s daily lives.
IMAGE CREDIT: “President Donald J. Trump delivers remarks on the Administration’s tariff plans” by Abe McNatt, The White House. Licensed under U.S. Government Work. Image adjusted for layout.