President Donald Trump hit Truth Social over the weekend with some bold claims about his tariff strategy, arguing that the policies have delivered "unprecedented national security" and created substantial wealth for the United States.
The Numbers Trump's Touting
In his post, Trump highlighted what he called a "totally unheard of" 60% reduction in the U.S. trade deficit. He also pointed to a 4.3% GDP growth rate that he says is "going way up," while insisting there's no inflation impacting the economy.
"We are respected as a Country again," Trump declared, framing the economic data as vindication of his administration's approach.
The GDP figure he's celebrating comes from third-quarter data that showed the U.S. economy growing at a healthy clip. And there's at least some evidence backing the trade deficit claim—in September, the U.S. trade deficit did narrow to $52.8 billion, which represents the smallest gap since June 2020.
The Other Side of the Coin
But not everyone's celebrating. Rep. Adam Schiff (D-Calif.) has been particularly vocal in pushing back against Trump's rosy narrative, arguing that tariffs function as a tax on American consumers.
According to Schiff, California residents have shelled out over $1,000 more this year because of what he calls "Trump Taxes." He says these costs are showing up in housing, groceries, and everyday goods—basically everything people actually buy on a regular basis.
This highlights the fundamental tension in the tariff debate: are they protecting American industries and closing the trade deficit, or are they just making stuff more expensive for regular people? The answer probably depends on who you ask and what industry you're in.
What Economists Are Saying
The 4.3% GDP growth Trump's touting has become something of a political football. While the President attributes it directly to his policies and tariff strategy, economists aren't quite ready to give him all the credit.
More importantly, there's serious debate about sustainability. Strong quarterly GDP numbers are great, but can this pace continue? And are tariffs helping or setting up problems down the road? The economic community remains pretty divided on these questions, with different experts looking at the same data and reaching very different conclusions about the long-term effects of current trade policy.