Trump’s Tariffs, War with Iran and Other Policies Drive Inflation, Critics Say

Since beginning his second term, President Donald Trump has pursued a series of measures that commentators say have pushed U.S. prices higher. These include “liberation day” tariffs on hundreds of goods, a subsequent 10 % across-the-board tariff after a court ruling, the termination of federal subsidies for low-cost renewable energy, the removal of electric-vehicle tax credits, and an intensified push to build data centers that is projected to add billions of dollars to electricity bills. The administration also launched a war against Iran eight months ago, despite warnings that the conflict could disrupt oil supplies through the Strait of Hormuz.

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• A Fox News poll this month found 77 % of Americans disapprove of Trump’s handling of tariffs.

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• The American Automobile Association reports the national average gasoline price at $4.28 per gallon.

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• Yale Budget Lab estimates the tariffs will cost the average household about $1,100 this year, while Moody’s Analytics attributes roughly $2,000 of additional household expenses to the Iran war’s impact on energy and interest rates.

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• Gasoline prices have risen more than 40 %, diesel nearly 70 %, and fertilizer about 20 % since the conflict began.

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• Premiums for individually purchased health insurance have jumped 25 % this year, and cuts to Medicaid are projected to affect more than 20 million people.

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• Thirty-year fixed mortgage rates have climbed to 7.4 %, making home purchase harder for many.

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White House spokesman Matthew Middleton defended the agenda, arguing that Trump’s “aggressive, pro-growth economic agenda” has blunted inflation, boosted wages and created private-sector jobs. A senior administration official added that recent policy moves have expanded energy supply and lowered costs for households and businesses by easing drilling regulations and reducing environmental constraints.

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Senator Bernie Sanders rebuked Trump’s claim that he “loves inflation,” noting that working families are bearing the burden of higher gas, grocery and housing costs. A Reuters/Ipsos poll cited in the commentary indicated that 78 % of respondents blame Trump’s policies for rising prices. Critics also point to the loss of Medicaid coverage for millions and the steep increase in health-insurance premiums as evidence that the administration’s actions have worsened affordability.

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The combined effect of higher fuel, food, housing and health costs has eroded real wage growth, with both hourly pay and consumer prices climbing 5.4 % since January 2025. Rising mortgage rates and stagnant wages are expected to shape voter sentiment ahead of the upcoming midterm elections, where affordability concerns are becoming a central issue for many Americans.

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