Trump Claims Gas Price Drops Will Offset Tariff Costs: What the Data Shows

Trump Administration Touts Gas Price Drop to Offset Tariff Impact

President Donald Trump’s administration claims that falling gas prices will offset the financial strain of new tariffs on American households, but some independent analyses suggest that the math doesn’t support that narrative. GREG WOHLFORD/ERIE TIMES-NEWS / USA TODAY NETWORK via Imagn Images

$200 Saved at the Pump vs. $2,300 Lost to Tariffs, Analysts Say

According to a report by Axios, the average price of regular gas is now $3.179—a 40-cent drop from the same time last year. With average usage just under 500 gallons annually, this means roughly $200 in savings per vehicle per year. However, the Yale Budget Lab estimates that the average household will pay around $2,300 more per year due to Trump's broad global tariff policy. engin akyurt / Unsplash

Walmart: Tariffs Forcing Us to Raise Prices

Despite the administration's optimism, major retailers are already feeling the squeeze. Walmart’s CFO John David Rainey told the Associated Press that the retail giant had been “forced to raise prices” in recent weeks, explaining, “there’s a limit to what we can bear, or any retailer for that matter.” Kathryne Rubright/Pocono Record / USA TODAY NETWORK via Imagn Images

Treasury Secretary Admits Price Hikes but Downplays Consumer Pain

Treasury Secretary Scott Bessent admitted on CNN’s State of the Union that prices at Walmart would rise because of the tariffs. While he noted Walmart would absorb some of the cost, he downplayed the consumer impact, claiming shoppers would be more concerned with saving money at the pump. Josh Morgan / USA TODAY NETWORK via Imagn Images

Trump: Walmart Should 'EAT THE TARIFFS'

Trump doubled down on the message in a Truth Social post, writing that Walmart should “EAT THE TARIFFS” instead of passing costs on to shoppers. GREG LOVETT/THE PALM BEACH POST / USA TODAY NETWORK

White House Defends Tariffs as Part of Broader Economic Strategy

Still, the administration maintains a confident stance. White House spokesperson Kush Desai told Axios, “The U.S. has the leverage to make our trading partners ultimately bear the cost of tariffs.” He cited recent months of “below-expectation inflation reports,” strong job numbers, and large-scale investments as proof that Trump’s policies—including tariffs, deregulation, and tax cuts—are “laying the groundwork to restore American greatness.” Tabrez Syed / Unsplash

Trump Temporarily Cuts China Tariffs; Beijing Responds in Kind

On May 12, Trump announced a temporary easing of tariffs on China, lowering them from a proposed 145% to 30% for 90 days. In response, China cut its own tariffs on American imports from 125% to 10%. The White House / Wikimedia