Trump Touts Lower Prices, Critics Say Tariffs Are Driving Costs Up

President Donald Trump is doubling down on affordability as a central pillar of his economic agenda, leveraging a high-profile address to McDonald's franchise owners to highlight what he claims are strides in curbing inflation and stabilizing prices. During a speech at the McDonald's Impact Summit in Washington, the president praised the fast-food giant for reintroducing $5 and $8 Extra Value Meals, calling the move a "very big role in getting prices down". Trump, a self-proclaimed "all-time most loyal customer" of the chain, framed the event as evidence of his administration's success in countering "the worst inflation in history" under his predecessor.

The president's push comes amid a politically charged climate, as Republicans grapple with recent off-year election losses in states like New Jersey, New York, and Virginia-where affordability concerns dominated voter priorities. Trump's administration has introduced a mix of measures to address price pressures, including slashing tariffs on 200+ imported food items like coffee, bananas, and beef, and proposing 50-year mortgages to ease housing costs. However, economists and industry leaders remain skeptical, noting that tariffs on key imports-particularly from Brazil and Argentina-have contributed to surging beef prices and strained supply chains.

While Trump insists his policies are "ending the affordability crisis," critics highlight contradictions. For instance, the consumer price index (CPI) rose 3% year-over-year in September 2025, matching the rate he inherited when he took office. Meanwhile, U.S. cattle herds remain at a 75-year low, compounded by droughts and tariffs that have diverted beef exports to markets like China. "When you impose an extra 50% tariff on a major supplier like Brazil, importers may keep buying and pass costs along, or they may stop buying, but that means less supply to meet the demand," said Dan Anthony, president of Trade Partnership Worldwide according to CNBC.

The administration's efforts to recalibrate trade policies have also extended to Latin America. A $20 billion financial package to Argentina, paired with bilateral trade deals with Ecuador, Guatemala, and El Salvador, aims to lower costs for coffee, bananas, and other staples. These moves follow Trump's contentious rhetoric blaming Joe Biden for inflation and his recent reversal on tariffs, which some analysts see as a response to growing public frustration over prices.

Yet, political tensions persist. New York City Mayor-elect Zohran Mamdani, a vocal critic of Trump's economic policies, has sought a meeting with the president to address affordability challenges in the city. Mamdani accused Trump's administration of exacerbating costs through policies like cuts to SNAP funding and tariffs, while Trump has labeled him a "communist" and threatened to withhold federal funds from New York.

As Trump continues to promote his affordability agenda, the administration faces a balancing act: maintaining tariffs to protect domestic industries while addressing the rising costs that have eroded consumer confidence. With midterms approaching and economic indicators mixed, the president's ability to convince Americans that his policies are delivering on affordability promises remains a critical test.