How is the US economy really doing under President Trump?
This analysis examines the performance of the US economy under President Trump's second term, noting growth despite the impact of tariffs and geopolitical tensions. It highlights the role of the AI investment boom in supporting current GDP expansion.
Why it matters
Understanding the drivers of US economic performance is critical for assessing the impact of current trade policies and technological investments.
By Ben Chu Policy and analysis correspondent Published 14 minutes ago President Donald Trump has been boasting about the performance of the US economy ahead of the midterm congressional elections, claiming he has boosted incomes, reduced inflation and created jobs.
Trump has repeatedly said: "We have the hottest country anywhere in the world."
While the overall US economy is faring better than many expected after Trump launched his sweeping "Liberation Day" tariffs in 2025, there's evidence those import taxes and the impact of the US-Israel war with Iran have pushed up inflation, with the harmful effects felt by most American households.
The US economy is also being helped by an AI investment boom, and could falter if that spending were to dry up.
So how does all this feel for the average American? BBC Verify has looked at whether the evidence supports the president's claims.
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