President Donald Trump opened his new economic tour in Mount Pocono, Pennsylvania, doubling down on his long-standing tariff agenda while dismissing criticism that his trade policies helped fuel the nation’s affordability crisis.
Speaking under the theme “Lower Prices, Bigger Paychecks,” Trump insisted his tariff strategy remains essential for national security and economic strength, even as he openly acknowledged that prices have been a problem for Americans.
During the 90-minute speech, Trump again called “tariff” his favorite word and claimed his administration had brought in “hundreds of billions” in revenue through his trade policies. He argued that Americans could simply “give up certain products” affected by tariffs, joking that children receive “37 pencils” from China but “only need one or two.”
His message comes as polls show affordability and the rising cost of living are top voter concerns ahead of the 2026 midterm elections. Despite Trump’s hardline rhetoric, his administration has quietly reversed a large portion of its earlier tariffs:
The sweeping 25% tariff on imports from Mexico and Canada no longer applies to goods covered by the USMCA, which is most imports from both neighbors. Tariffs on China, once exceeding 100%, have been brought down to a baseline 10%, applied uniformly across countries.
In November, the administration cut or removed tariffs on key food items, including beef, coffee, bananas, and tomatoes, in an attempt to cool grocery prices. Still, overall tariff levels remain higher than at any time in recent decades.
A Federal Reserve Bank of St. Louis analysis released in October found that tariffs have had a statistically significant impact on consumer prices throughout 2025. The study noted that price increases in early 2025 closely matched tariff developments.
However, the report also said the full effect hasn’t yet filtered through due to delayed price adjustments and competition limiting how much firms can raise prices.
Trump continues to rate his economic performance as “A-plus-plus-plus-plus-plus,” but consumer mood tells a different story. The University of Michigan’s November index recorded 51 points, the second-lowest level in its 70-year history, only slightly above June 2022’s record low.
Democrats have seized on affordability as a central message, arguing that Trump’s tariff strategy directly worsened household costs. New York City mayor-elect Zohran Mamdani, who campaigned heavily on affordability, is among those linking policy choices to rising prices.
The White House declined to comment.
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