Trump pitches affordability in Detroit amid 2.7% inflation

Trump toured Ford's Dearborn F-150 plant and addressed the Detroit Economic Club on Jan. 13, 2026, promising plans 'in coming weeks' to restore affordability as the 2026 midterms approach. He announced healthcare proposals this week, housing plans at the Davos World Economic Forum next week, and touted his drug pricing 'most favored nation' agreement with AbbVie and other pharmaceutical companies. Trump claimed Republicans 'should win midterms in a landslide' on drug pricing alone. The speech came hours after BLS reported Dec. 2025 CPI at 2.7% year-over-year, matching Nov.'s rate and meeting economists' expectations but remaining above the Fed's 2% target for over a year.

Inflation has remained above the Fed's 2% target for 13 consecutive months despite Trump's campaign promises to reduce prices. Dec.'s 2.7% year-over-year rate matches Nov. and shows little movement toward the Fed's target. Food prices rose 3.5% year-over-year, with coffee up 20%, beef up 16%, and eggs up 37% compared to Dec. 2024. Shelter costs—the largest component of CPI—rose 4.6% year-over-year. Gas prices fell 9.3% year-over-year, the only major category showing significant decline. Inflation stuck at 2.7% for 13 months cost Republicans state legislative seats in Nov. 2025—Democrats won by hammering grocery prices and rent increases.

Trump spent his entire second term blaming Biden for inflation and calling affordability concerns a Democratic 'hoax' until Democrats won Nov. 2025 off-year elections in 🗽New York, 🏖️New Jersey, and 🏛️Virginia on cost-of-living issues. Democrats flipped state legislative seats in all three states and won governorships by emphasizing grocery prices, rent increases, and healthcare costs. Only after these losses did Trump pivot to affordability promises. His Jan. 13 speech marks a shift from blame to policy promises, but critics note he provides no legislative agenda or enforcement mechanisms for his 'deals' with pharmaceutical companies.

Trump's 'most favored nation' drug pricing agreement with AbbVie lacks enforcement mechanisms or oversight. AbbVie pledged $100 billion in U.S. investment over 10 years in exchange for exemption from all drug pricing mandates for three years. The agreement is a voluntary corporate pledge with no legal force—AbbVie can walk away at any time without penalty. Independent analysts note $100 billion over 10 years barely exceeds AbbVie's existing capital expenditure plans, suggesting the company committed to investments it was already planning. The deal provides AbbVie with regulatory certainty and protection from price caps while giving Trump a talking point without actual price reductions for consumers.

Trump announced healthcare and housing proposals but provided no details, timelines, or legislative strategies. He said healthcare proposals would come 'this week' but didn't specify what they'd include. He said housing plans would be unveiled at Davos next week but gave no indication of scope or implementation. The pattern matches Trump's first-term approach of announcing initiatives without follow-through. Congress hasn't received legislative text for any affordability proposals despite Trump's claims that solutions are imminent. Republican congressional leaders haven't confirmed they're working on affordability legislation, suggesting Trump's promises may be campaign rhetoric rather than actual policy development.

Trump ignored inflation concerns until Democrats won three governor races by running on grocery prices—then suddenly he had 'plans in coming weeks.' Trump dismissed inflation concerns as exaggerated throughout 2024 and early 2025, claiming Biden's policies were the problem while his own tariffs, tax cuts, and spending increased inflationary pressure. He called warnings about grocery prices 'fake news' and suggested Americans were lying about economic hardship. Only after Democrats won by 8-12 points in swing districts in 🗽New York, 🏖️New Jersey, and 🏛️Virginia—flipping state legislative seats and governorships—did Trump acknowledge affordability as a real issue requiring policy responses.

Trump's Detroit speech combined affordability promises with attacks on sanctuary cities, war powers checks, and prosecutors investigating ICE shootings. He announced withholding all federal payments to sanctuary cities starting Feb. 1, called senators voting for Venezuela war powers resolution 'losers' and 'disasters,' and defended ICE agents who shot Renee Good. Trump spent more time attacking political opponents than detailing affordability solutions despite framing the speech as economic policy. He provided specific timelines for punishing Democratic jurisdictions (Feb. 1 sanctuary funding cuts) but only vague promises ('coming weeks') for affordability help.