Trump Says Tariffs ‘Cause Wealth’ While Downplaying Negative Economic Impact of Rising Inflation Numbers

**Annual Inflation in the US Hits 3.7% Amid Rising Prices, Trump Claims Tariffs Promote Wealth**

In September, annual inflation in the United States surged to 3.7%, an increase from the previous month’s rate of 3.4%. These figures were revealed by the U.S. Bureau of Labor Statistics and have raised concerns as energy and gas prices continue their upward trend. Recent comments by President Donald Trump at a campaign rally have ignited a debate regarding the relationship between tariffs and inflation, as well as the state of the economy.

During a rally in Montana on 14 October 2026, President Trump addressed the rising inflation rates and defended his administration’s tariff policy. He stated, “Every once in a while, you hear someone say, ‘Tariffs caused inflation.’ We have very little inflation,” contradicting evidence from economic research. Trump boldly claimed that tariffs do not contribute to inflation, stating they instead “cause wealth.” This assertion stands in stark contrast to findings from the Federal Reserve Bank of New York.

According to the Federal Reserve’s recent analysis, tariffs imposed by the Trump administration have actually added 2.9 percentage points to consumer goods inflation. The report highlights how tariffs have led to increased prices not just for imported goods but also for American-made products, suggesting that the overall cost of everyday goods might have decreased without such tariffs in place.

Despite these concerns, White House spokeswoman Taylor Rogers defended Trump’s policies, stating that the president’s “America First” trade agenda is designed to reshape the international economic landscape. She mentioned the intent to reduce the trade deficit and revitalise American manufacturing while claiming that foreign exporters would bear the brunt of tariff costs.

These statements from Trump regarding inflation are not new. In a previous instance back in July, he appeared unconcerned about the rising inflation rate, infamously declaring, “No, I love it.” His comments have drawn criticism, particularly in light of the latest inflation figures and their implications for the American public.

The upturn in inflation is largely attributed to escalating energy costs, tied to ongoing tensions related to the conflict with Iran. Current reports highlight that the inflation rate recorded in September is higher than any similar period prior to midterm elections since 1990, barring the surge experienced during the pandemic.

Voter sentiment appears to reflect the economic strain generated by rising prices, with a recent NBC poll indicating that 55% of respondents believe that Trump’s policies have had a detrimental impact on the economy. Additionally, his approval rating among registered voters stands at a modest 41%, demonstrating potential challenges for his administration as they navigate these complex economic issues.

The rising cost of living is likely to remain a critical topic as the country heads toward future elections. With economic anxiety high, the impact of both inflation and tariffs on American households will be closely scrutinised. Critics argue that the current economic environment underscores the need for a more nuanced understanding of the factors driving inflation and the consequences of tariff policies.

As the situation continues to develop, it remains to be seen how these economic indicators will influence voter behaviour and perceptions of the current administration. Economic policy discussions are expected to intensify in the coming weeks, highlighting the importance of addressing inflationary pressures and their impact on everyday life.