President Donald Trump addresses the nation in an address from the Diplomatic Room of the White House on Dec. 17, 2025. (Photo by Doug Mills - Pool/Getty Images)

WASHINGTON — As Americans continue to face rising prices ahead of year-end holidays, President Donald Trump blamed inflation and health care costs on his predecessor during a prime-time speech Wednesday in which he also claimed to have fixed the issues.

Trump “inherited a mess” and has turned the United States into the “envy of the entire globe” by imposing an immigration crackdown, tariffs and tax breaks, he said. 

“Over the past 11 months, we have brought more positive change to Washington than any administration in American history. There’s never been anything like it, and I think most would agree I was elected in a landslide,” Trump said.

Standing before a backdrop of Christmas decorations, Trump also promised $1,776 checks would arrive for members of the United States military by Christmas.

And he continued to blame Democrats for health care costs that are projected to skyrocket next month when tax credits for Affordable Care Act marketplace plans expire.

Nearly a year into his second term, Trump remains fixated on blaming former President Joe Biden even as his own approval ratings sink, according to numerous recent polls.

A plaque below Biden’s photo in Trump’s newly installed “Presidential Walk of Fame” display reads “Sleepy Joe Biden,” according to reports from journalists present at the White House Wednesday.

“When I took office, inflation was the worst in 48 years, and some would say in the history of our country, which caused prices to be higher than ever before, making life unaffordable for millions and millions of Americans. This happened during a Democrat administration, and it’s when we first began hearing the word ‘affordability,’” Trump said.

In recent weeks, Trump has said “affordability” is a “hoax.”

Yet the bulk of Trump’s somewhat hastily scheduled address — the White House announced it Tuesday — focused on lowering costs for housing, electricity and health care.

Trump announced he will send a $1,776 “warrior dividend” to every U.S. servicemember. The amount is in honor of the year of the country’s  founding, Trump said. Checks are “already on the way,” he said.

That could add up to as much as $2.6 billion, according to a White House estimate Wednesday night that 1.45 million service members would receive the payment.

Health care costs

He also touted trumprx.gov, where he said Americans can find “unprecedented price reductions” on prescription drugs starting in January.

“These big price cuts will greatly reduce the cost of health care,” Trump said.

He boosted a Republican plan on Capitol Hill to fund individual health savings accounts, or HSAs, in annual amounts of $1,000 to $1,500 depending on age and poverty level. An HSA is not health insurance.

“I want the money to go directly to the people so you can buy your own health care. You’ll get much better health care at a much lower price,” Trump said.

Four House Republicans defected Wednesday to sign a Democrat-led petition to bypass Speaker Mike Johnson, R-La., and force a floor vote in January on extending health insurance premium subsidies for people who buy insurance on the Affordable Care Act marketplace.

‘My favorite word’

Trump spent several minutes addressing the economy, stating that prices on groceries and fuel are coming down. Both claims are false, according to government data.

“I am bringing those high prices down and bringing them down fast,” Trump said.

The latest consumer price index for September showed gasoline prices rose 4.1% over the past 12 months, and “was the largest factor in the all items monthly increase,” increasing 1.5% over the previous month.

Food prices rose faster than overall inflation in recent months, according to the government’s latest data. Food prices in August were 3.2% higher than a year ago, according to the data.

Still, Trump claimed an economic turnaround that he credited to his international trade policy.

“Much of this success has been accomplished by tariffs — my favorite word ‘tariffs’ — which for many decades have been used successfully by other countries against us, but not anymore,” he said.

The U.S. ended fiscal year 2025 with a deficit reaching nearly $1.8 trillion, or roughly 6% of the domestic economy’s gross domestic product.

Trump unilaterally imposed a global 10% tariff on all foreign goods in April, plus higher tariffs on many major trading partners, including the European Union, Japan, South Korea and Vietnam. The Supreme Court is expected to rule soon on whether Trump’s emergency tariffs are legal.

Americans have lost faith in Trump’s ability to handle the economy, according to an NPR/PBS News/Marist poll published Wednesday.

Trump received a 36% approval rating on his economic strategy, the lowest rating over the past six years that the survey has asked voters the question.

A Fox News poll released Nov. 19 found 76% of respondents saw the economy negatively. Of all voters polled, 41% approved and 58% disapproved of Trump’s performance. That’s down from the conservative news network’s poll of Biden’s approval ratings during the same point in his presidency, which the network says was 44%.

Mum on Venezuela

The president did not spend much time addressing his military campaign off the coast of Venezuela, despite declaring just 24 hours beforehand that the U.S. had formed a “blockade” in the Caribbean Sea.

Trump posted on his own social media platform Truth Social Tuesday night that Venezuela is “completely surrounded by the largest Armada ever assembled in the History of South America.”

The campaign, which has become top of mind for many lawmakers on Capitol Hill, is about preventing drug smuggling to the U.S., Trump and Republican lawmakers have repeatedly said.

Democratic lawmakers are pressing the Trump administration to release unedited footage of a Sept. 2 strike that killed two shipwrecked individuals who were clinging to what was left of a boat after an initial strike.

Kia had a plan just six months ago, one that mapped out several new electric models for the North American market. Now, that plan seems to have hit a wall, stalling before it ever gained momentum.

At the recent Los Angeles Auto Show, Kia America’s vice president of marketing, Russell Wager, shared a candid update. The fate of both the EV4 sedan and Kia’s upcoming pickup truck now hinges on something entirely beyond the company’s reach: tariff stability.

Read: Hyundai And Kia EV Sales Collapse After Tax Credits Vanish Overnight

Speaking to Car and Driver, Wager called out tariffs as the reason that Americans haven’t had access to the EV4 to this point. The car has suffered one delay after another.

What’s the Hold-Up?

When asked about that delay, Wager said “Can you give me the answer of when the tariffs are going to be resolved in Mexico, Canada, and Seoul? If you give me that answer, I’ll be as specific as possible.”

Wager made it clear that the Korean automaker isn’t waiting for tariffs to go away altogether, either. It just wants to see them set at a specific stable figure.

“At that point in time we look at it and say, are we at 25 [percent], are we at 15—and then we can build our business case,” he said. “It was originally designed and engineered when the tariffs were zero percent.”

For now, it’s the uncertainty that keeps cars like the EV4 and Kia’s planned EV pickup out of the USA. Of course, customer demand might not be strong enough anyway after the end of the federal tax EV credits.

Wager admitted that both factors are playing a role. “We’ve got a great portfolio of EVs that are on sale in a lot of other places in the world that we could choose from,” he added. “We just need resolution, and then we also need the consumer market here to want them.”

Get Ready for Price Increases

Between now and whenever Kia decides what to do with the pickup and EV4, it might have to bump prices up.

“Others have raised prices,” Wager said. “I’m not going to name names, and we’ve seen their sales drop. The takeaway is we can’t do it forever. We’ve made it eight months since April so far. If tariffs don’t get resolved or they’re that high, we’ll have to make the business decision. As far as parts tariffs and import tariffs, at some point in time, we can’t absorb it all.”

Hyundai Motor Group has already proven that it can bend a little but part of its biggest draw is being a solid value proposition against rivals. The near future will determine if it can bend enough to keep that reputation without breaking.

For the first time in nearly twenty years, the CEOs of Ford, General Motors, and Stellantis may once again share a table before Congress. The Senate Commerce Committee has called on Ford’s Jim Farley, GM’s Mary Barra, and Stellantis’ Antonio Filosa to testify on January 14 in a high-profile hearing exploring the auto industry’s outlook on federal transportation policy and vehicle affordability.

The session will also delve into the uneasy transition toward electrification, a subject that continues to divide policymakers and automakers alike. Tesla’s VP of Vehicle Engineering, Lars Moravy, has been invited to join the discussion, adding an electric perspective to the mix.

More: Lawmakers Demand Answers From Hertz On AI Rental Damages System

The last time all three Detroit bosses appeared together on Capitol Hill was late 2008 during the financial crisis, bailout negotiations, and a moment when the industry’s future looked genuinely uncertain. This time, the pressure points are different but no less significant.

Why Bring Them Together Now?

Senator Ted Cruz, who’s spearheading the hearing, has titled it “Pedal to the Policy: The Views of the American Auto Industry on the Upcoming Surface Transportation Reauthorization.”

Based on reporting from the Union-Bulletin, the sessions will probe fuel economy and emissions mandates, tariffs, federal EV policy, new-vehicle pricing, and how automakers plan to navigate the next decade. Cruz frames the meeting as a long-overdue reality check on affordability.

“The average price of a car has more than doubled in the past decade,” said Cruz, blaming “onerous government-mandated technologies and radical environmental regulations.”

What’s Driving Up Costs?

No doubt, the average transaction price (ATP) of a new car is quite high these days. Data from Cox Automotive shows that it surpassed $50,000 in September.

A decade ago, that figure was in the low $30,000s. Notably, analysts think the shift is due to several factors, including, but not limited to, regulation. Inflation, tariffs, higher-end trims, and the introduction of more EVs all have a part to play.

Also: EVs Now Sell Faster Than Gas Cars In The Used Market

Republicans say policy changes earlier this year, including repealing federal EV mandates and CAFE targets under the One Big Beautiful Bill Act, are steps toward lowering prices. However, Cruz argues lawmakers need to go further. This is all happening at a critical point in the U.S. automotive industry too.

The debate comes at a pivotal moment for the U.S. auto sector. The United States-Mexico-Canada Agreement (USMCA) faces renewal or renegotiation by July 1. If it lapses, the fallout alone could drive vehicle costs higher, regardless of any new legislation.

Source: Union-Bulletin

Seven years after Canadian leaders last met their Chinese opposite numbers, Prime Minister Mark Carney is sitting down with Chinese President Xi Jinping. At stake are billions of dollars worth of trade, but Carney hinted that the trade agreement many are hoping for might not materialise, at least not from this first face-to-face.

The two leaders are getting together at the summit of the Asia Pacific Economic Cooperation in Gyeongju, South Korea, and in the run-up to the meeting, some news reports suggested that Canada could be ready to axe the 100 percent tariff on imported Chinese EVs put in place in 2024.

Related: China Turns Up The Pressure As Canada Reconsiders Its EV Tariffs

Canada is under pressure to hit eco targets, and giving access to more affordable EVs could help. But the real pressure to cancel the EV tariffs is coming from Canada’s farmers.

The country’s Canola industry is worth billions of dollars, with a healthy chunk of that revenue coming from China. But exports to China have tanked since the Chinese placed a 75.8 percent tariff on canola seed in response to EV tariffs.

So a simple “you drop your tariffs and I’ll drop mine” handshake could sort everything, right? It’s not that easy, and Carney was careful not to suggest that he expected to come back from this initial meeting with an oven-baked trade agreement.

“We will explore what we can build on. This is our second largest trading partner. This is the second largest economy in the world,” Carney told the media in the build-up to the meet, as reported by CTV News.

“[But] there’s no preset offer. This is the difference between relationship and transaction,” he added, explaining that the relationship between the two countries needed to “deepen” and that there were many other topics up for discussion besides EVs.

Another reason Carney might hesitate before lifting EV tariffs is concern over the welfare of Canada’s own auto industry, which is already taking a beating from US President Donald Trump’s tariffs, and the current US-Canada tensions aren’t likely to ease those problems soon.

The last thing it needs is an influx of bargain-priced competitors from China.