Trump Credits Tariffs for Economic Surge as Inflation Lingers

On Tuesday, President Donald Trump credited his tariff policies for driving better-than-expected economic growth in the third quarter, declaring that “the Trump Economic Golden Age is FULL steam ahead.”

In a series of Truth Social posts, Trump asserted that tariffs were responsible for the reported 4.3% annual increase in U.S. gross domestic product from July through September—a figure surpassing forecasts and previous quarterly gains. The Commerce Department’s initial estimate showed robust consumer spending, higher exports, and increased government outlays contributed to this acceleration.

Trump highlighted these details, claiming tariffs were boosting domestic production and rebalancing trade while stating consumer spending was “STRONG,” “Net Exports are WAY UP,” “Imports and Trade Deficits are WAY DOWN,” and investment was “SETTING RECORDS” due to his tax package—”THE GREAT BIG BEAUTIFUL BILL”—and tariff policy.

The data revealed consumer spending grew at a 3.5% annual rate in the third quarter, up from 2.5% in the prior period. Exports surged, and government spending also increased. Analysts cautioned that trade flows may experience temporary distortions due to evolving tariff expectations.

However, inflation remains elevated. The Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) price index, rose at a 2.8% annual pace last quarter, with core PCE at 2.9%, both above the central bank’s 2% target.

The GDP report was delayed due to a recent government shutdown, which created a backlog of federal economic data and is expected to reduce fourth-quarter growth by 1 to 2 percentage points.