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WASHINGTON (AP) — President Donald Trump delivered a politically charged speech Wednesday carried live in prime time on network television, seeking to pin the blame for economic challenges on Democrats while announcing he is sending a $1,776 bonus check to U.S. troops for Christmas.
The remarks came as the nation is preparing to settle down to celebrate the holidays, yet Trump was focused more on divisions within the country than a sense of unity. His speech was a rehash of his recent messaging that has so far been unable to calm public anxiety about the cost of groceries, housing, utilities and other basic goods.
Trump has promised an economic boom, yet inflation has stayed elevated and the job market has weakened sharply in the wake of his import taxes. Trump suggested that his tariffs — which are partly responsible for boosting consumer prices — would fund a new “warrior dividend” for 1.45 million military members, a payment that could ease some of the financial strains for many households.
“The checks are already on the way,” he said.
Presidential addresses to the nation carried on network television are traditionally less partisan than rally speeches, but Trump gave a condensed version of his usual political remarks.
Flanked by two Christmas trees with a portrait of George Washington behind him in the White House’s Diplomatic Reception Room, Trump sought to pin any worries about the economy on his predecessor, Joe Biden.
“Eleven months ago, I inherited a mess, and I’m fixing it,” Trump said. “We’re poised for an economic boom, the likes of which the world has never seen.”
His holiday wishes came at a crucial time as he tries to rebuild his steadily eroding popularity. Public polling shows most U.S. adults are frustrated with his handling of the economy as inflation picked up after his tariffs raised prices and hiring slowed.
In 2026, Trump and his party face a referendum on their leadership as the nation heads into the midterm elections that will decide control of the House and the Senate.
The White House remarks were a chance for Trump to try to regain some momentum after Republican losses in this year’s elections raised questions about the durability of his coalition.
Trump brought charts with him to make the case that the economy is on an upward trajectory. He made claims about incomes growing, inflation easing and investment dollars pouring into the country as foreign leaders, he claimed, have assured him that “we’re the hottest country anywhere in the world,” a statement he has frequently repeated at public events.
If the argument seemed familiar, that’s because it has echoes of the case that Biden made about the U.S. economy with little success. He, too, in the face of inflation pointed to the enviable rate of U.S. economic growth compared to other nations.
But the hard math internalized by the public paints a more complicated picture of an economy that has some stability but few reasons to inspire much public confidence.
The stock market is up, gasoline prices are down and tech companies are placing large bets on the development of artificial intelligence.
But inflation that had been descending after spiking to a four-decade high in 2022 under Biden has reaccelerated after Trump announced his tariffs in April.
The consumer price index is increasing at an annual rate of 3%, up from 2.3% in April.
The affordability squeeze is also coming from a softening job market. Monthly job gains have averaged a paltry 17,000 since April’s “Liberation Day,” when Trump announced import taxes that he later suspended and then readjusted several months later.
The unemployment rate has climbed from 4% in January to 4.6%.
Trump said that investment commitments for new factories will boost manufacturing jobs and that consumer activity will improve dramatically as people receive increased tax refunds next year.
While emphasizing the economy, he also faces challenges on other policy fronts.
Trump’s mass deportations of immigrants have proved unpopular even as he is viewed favorably for halting crossings along the U.S. border with Mexico. The public has generally been unmoved by his globe-trotting efforts to end conflicts and his attacks on suspected drug boats near Venezuela.
Trump sought to blame Democrats for the likely increase in health insurance premiums as the subsidies tied to the 2010 Affordable Care Act are expiring. Democratic lawmakers have sought to address that issue, while Trump has suggested with scant details that any government aid should go directly to the families buying the insurance instead of the insurance companies.
Still, the true test of his speech will be whether the economy improves in ways that lift public sentiment and, potentially, his own coalition’s odds in next year’s election.
The president sought to end the address on a high note, noting the Olympics and World Cup soccer matches that will take place in the United States next year.
Trump made an appeal to patriotism by noting that 2026 is the 250th anniversary of the signing of the Declaration of Independence and closed his speech by wishing viewers a merry Christmas and a happy new year.
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Follow the AP’s coverage of President Donald Trump at https://apnews.com/hub/donald-trump.
Josh Boak, The Associated Press
