Trump Confronts Biden‑Era Price Problem as Americans Grow Frustrated

By Andrea Shalal and Howard Schneider

President Donald Trump pledged to reverse the surge in consumer prices that began during the previous administration, but he is encountering a familiar economic and political challenge: once inflation lifts prices, they rarely fall quickly, and voters react strongly when everyday costs rise.

Prices Stay Sticky, Voters Feel the Pinch

Inflation has moderated from its peak — roughly 3% annually now versus more than 9% at its height — but many household expenses remain well above pre-pandemic levels. Items most affected by earlier tariffs and supply disruptions continue to cost more: beef is up about 15%, bananas roughly 7%, and coffee more than 20% year‑over‑year, according to the Consumer Price Index. Imported tools and hardware are about 6.2% pricier than a year ago, and cleaning products such as paper towels are up roughly 5.5%.

Those persistent price pressures have translated into souring consumer mood. A recent national poll found the president's approval around 38%, and the University of Michigan's Consumer Sentiment Index hit one of its lowest readings in November, with declines across party lines — a troubling sign for an administration headed toward 2026 midterms.

Policy Responses: Fast Fixes vs. Long Timelines

To address voter anxiety, the White House has highlighted projected private investment, rolled back tariffs on hundreds of food items including coffee and bananas, and floated targeted measures such as tariff‑funded checks for lower‑ and middle‑income households. Officials have also proposed tax adjustments for overtime, tips and Social Security, as well as further efforts to lower drug prices.

But economists caution that many of these moves — especially incentives that rely on corporate investment or reshoring manufacturing — take years to boost wages and reduce consumer prices. Some promised projects in the past have fallen short of early job estimates, and reshoring can raise production costs, at least initially.

Trump has also publicly pressed the Federal Reserve to lower interest rates, while promoting large private investments in areas such as artificial intelligence. While AI and new manufacturing can support long‑term growth, they may not immediately ease household price pressures; in some cases, automation can reduce labor demand.

Tariffs, Inflation Pass‑Through and Investor Reaction

Tariffs remain a central and contentious piece of the administration’s strategy. The White House points to roughly $150 billion in tariff revenue collected since January and to commitments by some foreign firms to invest in U.S. manufacturing. Critics argue tariffs raise costs for consumers and businesses and can prompt companies and foreign investors to diversify away from the U.S. if trade policy becomes unpredictable.

Financial institutions including Goldman Sachs expect more of the tariff burden to be passed through to consumer prices next year, which could amplify public unease ahead of midterm elections. Analysts warn that proclamations of rapid economic growth — public targets of 4%–6% from some quarters — are optimistic relative to most independent forecasts; the International Monetary Fund projects roughly 2.0% growth in 2025 and 2.1% in 2026.

Everyday Impact

Practical examples underscore the problem for many households. The American Farm Bureau Federation estimates that a typical Thanksgiving dinner will cost about 5% less this year than last, helped by discounted turkeys — yet the full meal remains roughly 13% more expensive than in 2019. Younger consumers express particular worry about health care costs: those aging off parental plans face an uncertain market and potential premium spikes.

“The best you can hope for is prices stabilizing and wages catching up,” said Scott Lincicome of the Cato Institute, noting that most voters prefer steady, low‑drama growth over headline policy gestures.

As the administration seeks to demonstrate progress, the political stakes are clear: persistent price pain undermines public confidence and could reshape electoral outcomes in 2026 unless households feel relief sooner.