Trump attributes strong US GDP growth to tariffs, downplays inflation worries.

US President Donald Trump on Tuesday asserted that his administration’s tariff policies were the driving force behind the unexpectedly strong economic growth in the third quarter, countering worries regarding inflation and affordability issues.

In a statement on his Truth Social platform after the release of the latest GDP figures, Trump claimed that tariffs were “responsible for the GREAT USA Economic Numbers just announced” and insisted that economic conditions would “only improve.” He also maintained that there was “no inflation” and suggested that tariffs had enhanced national security.

The Commerce Department’s Bureau of Economic Analysis released data indicating that

the US economy grew at a 4.3% annualized rate in the third quarter, surpassing market expectations and accelerating from the prior quarter. This growth was mainly fueled by a surge in consumer spending, which increased at its fastest rate in more than a year.
Nevertheless, economists have provided a more tempered perspective. While higher-income households have sustained their spending, bolstered by strong equity markets, middle- and lower-income consumers are grappling with rising living expenses, partially due to elevated prices associated with import duties. Analysts have characterized the situation as a “K-shaped” economy, showcasing disparate outcomes among different income brackets.

The increase in consumer demand also seems to be losing momentum. A spike in electric vehicle purchases ahead of the expiration of federal tax credits boosted third-quarter spending, but vehicle sales declined in October and November, with overall consumption data showing mixed results.

Trump’s remarks come as the economy encounters new challenges from a recent government shutdown, which the Congressional Budget Office has predicted could slash fourth-quarter growth by as much as two percentage points, with certain output losses anticipated to be permanent.

The Federal Reserve, for its part, reduced interest rates earlier this month but indicated it would tread carefully, citing uncertainties surrounding inflation trends and labor market conditions.

In his post, Trump also called on supporters to “pray for the U.S. Supreme Court,” without further clarification, as discussions continue regarding the legal and economic ramifications of his trade policies.