Trump Claims Prices Are Falling Thanks to McDonald’s – Not Tariffs?
President Donald Trump used the stage at a McDonald’s Corp. franchisee event to defend his economic policies amid criticism of the high cost of living. In his speech, he asserted that his administration is making progress lowering prices, while rejecting accusations from Democrats that import tariffs are actually fueling price increases. Trump called his political opponents misguided by continuing to blame tariffs for the inflation felt by the public.
Addressing the franchise owners, Trump praised his economic policies, claiming they have attracted trillions of dollars in new investment, supported private sector job growth, and reduced the high inflation that had been a political liability for his predecessor. He specifically thanked McDonald’s for “slashing prices” and bringing back Extra Value Meals. Trump said he heard McDonald’s was refocusing on affordable menu items and called himself “one of your all-time most loyal customers,” while thanking the company for lowering prices on some of its products.
McDonald's and its franchisees are indeed reviving Extra Value Meals at $5 and $8. With a vast network of outlets across America, McDonald's is often considered an important barometer of consumer spending, especially for highly price-sensitive customers. This move provides Trump with a concrete, on-the-ground example to support the narrative that "prices are starting to come down" for lower- and middle-income families.
However, the speech also highlighted a major challenge for Trump: he must convince voters that his administration is truly addressing the cost of living, even though many economists believe his tariff policies could exacerbate inflation. "Affordable should be our word, not theirs," Trump said, accusing the Democratic Party of experiencing "the worst inflation in history" and record-high energy prices. This speech came shortly after Republicans suffered losses in local elections, where affordability and the high cost of living were key issues.
In recent days, the Trump administration has announced a number of steps to ease price pressures, including plans to reduce tariffs on a range of food products such as beef, tomatoes, coffee, bananas, fruits, nuts, and juices, as well as agreements with several Latin American countries to lower prices for goods not widely produced in the US. White House officials have also floated the idea of 50-year mortgages to lower monthly payments and proposed a $2,000 direct payment per person from tariff revenues. However, Trump's advisers have consistently downplayed the role of tariffs in price increases, even as the exclusion of agricultural products appears to be an indirect admission that high tariffs contribute to inflation. The speech at the McDonald's event is billed as the first in a series of "affordability"-themed campaign rallies that Trump will take to various regions. (asd)
Source: Bloomberg.com
