Trump credits tariffs for strong US GDP growth, dismisses inflation concerns

US President Donald Trump on Tuesday claimed that his administration’s tariff policies were behind the country’s stronger-than-expected economic growth in the third quarter, pushing back against concerns over inflation and affordability pressures.In a post on his Truth Social platform following the release of the latest GDP data, Trump said tariffs were “responsible for the GREAT USA Economic Numbers just announced” and argued that economic conditions would “only get better.” He also asserted there was “no inflation” and said tariffs had bolstered national security.

The Commerce Department’s Bureau of Economic Analysis reported that

the US economy expanded at a 4.3% annualised pace in the third quarter, beating market expectations and accelerating from the previous quarter. The growth was largely driven by a pickup in consumer spending, which rose at its fastest pace in more than a year.
Economists, however, have offered a more cautious assessment. While higher-income households have continued to spend, supported by strong equity markets, middle- and lower-income consumers are facing rising living costs, partly due to higher prices linked to import duties. Analysts have described the trend as a “K-shaped” economy, with uneven outcomes across income groups.The boost to consumer demand also appears to be losing steam. A surge in purchases of electric vehicles ahead of the expiry of federal tax credits lifted third-quarter spending, but vehicle sales fell in October and November, and broader consumption data has been mixed.

Trump’s comments come as the economy faces fresh headwinds from a recent government shutdown, which the Congressional Budget Office has said could reduce fourth-quarter growth by up to two percentage points, with some output losses expected to be permanent.

The Federal Reserve, meanwhile, cut interest rates earlier this month but signalled it would proceed cautiously, citing uncertainty over inflation dynamics and labour market conditions.

In his post, Trump also urged supporters to “pray for the U.S. Supreme Court,” without elaborating, as debates continue over the legal and economic implications of his trade policies.