Key Takeaways:
- President Trump has changed his stance on the issue of affordability, now acknowledging its importance after previously calling it a "hoax" and a "scam"
- The president is promoting his economic agenda ahead of the midterm elections, highlighting job growth and declining gas prices in key battleground states like Pennsylvania
- Despite concerns from economists, Trump claims his tariffs on foreign goods are paying dividends for the US economy
- The president’s administration has taken steps to address affordability issues, including removing tariffs on certain imports and offering aid to farmers affected by the trade war with China
- Polls show that voters are still feeling the crunch of high prices and are skeptical of Trump’s claims that the economy is improving
Introduction to the President’s Economic Agenda
President Trump recently spoke in Mount Pocono, Pennsylvania, to promote his economic agenda ahead of the challenging midterm election season for congressional Republicans. During the rally-style speech, Trump spent over 90 minutes defending his economic record, saying "America is winning again" and "Pennsylvania is prospering again." He highlighted job growth in the key battleground state, which has a slightly lower unemployment rate than the nation as a whole, and a decline in gas prices. The president also claimed his tariffs on foreign goods are paying dividends for the US economy, despite worries from most economists that tariffs can lead to slower economic growth and higher consumer prices.
The President’s Claims on Affordability
Trump pointed to the tax components of his "big, beautiful bill," including a plan to create investment accounts for children and a tax deduction for tips. He also highlighted his decision to let Japan-based Nippon Steel buy US Steel, a major employer in Pennsylvania, saying his administration "saved" the company, which he said is now "hot as a pistol." The president argued that his administration is "crushing" inflation and said "prices are coming down," despite consumer prices rising 3% year-over-year in September. He continued to blame Democrats for affordability issues, saying "they caused the high prices, and we’re bringing them down."
The President’s Shift on Affordability
The president has publicly and privately vented about the focus on affordability as an issue for weeks, referring to it as a "hoax," a "con job," and a "scam" perpetuated by Democrats. However, in his recent speech, Trump criticized Democrats for focusing on affordability issues, though he said: "I can’t call it a hoax because they’ll misconstrue that." This shift in tone suggests that the president is acknowledging the importance of affordability, at least in part, as he prepares for the midterm elections. Behind the scenes, aides told CBS News that the president has grown increasingly irritated by perceptions that his policies aren’t easing prices.
The Economic Reality
Despite the president’s claims, the economy has proved resilient this year, with the nation’s gross domestic product accelerating in the second half of 2025, and the labor market remaining steady despite slowing payroll gains. Financial markets continue to hover in record terrain, shrugging off concerns about a bubble in AI companies. However, some experts describe the economy as "K-shaped," a reference to the divergent fortunes of wealthier consumers compared with people lower down the ladder. The high cost of living in the US remains a sore spot for millions of Americans, with the cost of food, shelter, healthcare, utilities, childcare, and other basic necessities remaining high.
The President’s Efforts to Address Affordability
The Trump administration has taken steps to address affordability issues, including removing country-specific tariffs on imports of beef, bananas, and coffee, and offering aid to farmers affected by the trade war with China. The president has also discussed offering Americans a $2,000 payment funded by US tariff collections and floated the idea of using tariff revenue to cut federal income taxes. These efforts suggest that the president is acknowledging the need to address affordability, even if he is not always consistent in his messaging.
The Political Implications
The president’s travel to sell his economic agenda in Pennsylvania is a quiet acknowledgement that he needs to do more to rally the public behind his policies. Polling shows that voters are feeling the crunch of still-high prices and the cost of living, and many at least partially blame Trump. A November CBS News/YouGov poll found that 60% of respondents agreed that Trump makes prices and inflation "sound better than they really are," and nearly two-thirds said the president’s policies are making grocery prices go up. The president’s ability to convince voters that his economic agenda is working will be crucial in the upcoming midterm elections, particularly in key battleground states like Pennsylvania.