Analysis of President Trump’s 2026 State of the Union Address
USA TODAY’s Washington Bureau Chief Susan Page takes a closer look at President Trump’s 2026 State of the Union address.
- President Trump claimed in his State of the Union address that car prices are lower now than when he took office.
- The average price of a new car rose from $48,641 to $49,191 in the first year of the second period, according to Kelley Blue Book data.
- President Trump emphasized that he signed a bill that makes auto loan interest on American-made cars tax deductible.
President Donald Trump spoke briefly about his plan to address auto affordability during his February 24 State of the Union address, addressing Americans’ concerns about rising prices.
“The cost of things like chicken, butter, fruit, hotels, cars, rent, etc. are much lower now than they were when I took office,” Trump said in a roughly two-hour speech. “And even beef, which was very expensive, is starting to come down significantly. Hold on, we’re going to bring it down. And very soon you’re going to see numbers that most people didn’t think were achievable just a short while ago.”
President Trump blamed Democrats for the higher costs, saying policies supported by Democrats under former President Joe Biden were responsible for the hefty price tags Americans are seeing at car dealerships elsewhere, even as he claimed credit for the price declines.
“The same people in this chamber who voted for that disaster suddenly used the word affordability, knowing full well that they were just using it because someone gave it to them, and that it created the price increases that all of us had to endure.”
Have car prices gone down or gone up during President Trump’s term?
According to Kelley Blue Book, when Trump took office for a second time in January 2025, the average price of a new car was $48,641. The average price of a new car reached $49,191 in January 2026, according to Kelley Blue Book.
The average monthly car transaction prices during President Trump’s second term are as follows.
- December 2025: $50,362
- November 2025: $49,814
- October 2025: $49,766
- September 2025: $50,080
- August 2025: $49,077
- July 2025: $48,841
- June 2025: $48,907
- May 2025: $48,799
- April 2025: $48,699
- March 2025: $47,462
- February 2025: $48,039
- January 2025: $48,641
What else did President Trump say about cars at the State of the Union?
President Trump touted during his State of the Union address that he had signed a bill in his first year in office that would make interest on car loans tax deductible.
“Last year, I urged this Congress to begin that mission by passing the largest tax cut bill in American history, and the Republican majority did just that,” President Trump said, referring to his signature bill, which he called “One Big Beautiful Bill” and was passed in the summer of 2025.
President Trump continued, “Democrats, all of you voted against these really important and very necessary massive tax cuts.” “They instead wanted massive tax increases to hurt our people. But we stood firm, and with the great Big Beautiful Act, we waived the tip tax, the overtime tax, and the Social Security tax for our great seniors. And for the first time, we made interest on car loans tax deductible, but only if the car was made in America.”
Trump also tied his immigration policy to auto insurance prices during his speech, blaming Somali immigrants in Minnesota who have been targeted by his administration in recent months for sticker price hikes.
“The Somali pirates who plundered Minnesota were a reminder that there are parts of the world where bribery, corruption, and illegal activity are the norm, not the exception,” Trump said. “Importing these cultures through unrestricted immigration and open borders creates problems right here in the United States. And it is Americans who are paying the price in high medical bills, car insurance, rent, taxes, and perhaps most importantly, crime. We will address this problem.”
President Trump also emphasized that gas prices are “on average below $2.30 a gallon in most states,” compared to the national average price of $2.91 for a gallon of gas as of February 24, according to a report from the AAA Automobile Club.
“Gasoline prices, which peaked under my predecessor in excess of $6 a gallon in some states and were, frankly, a disaster, are now below $2.30 a gallon in most states and $1.99 a gallon in some areas,” President Trump said. “And just a few weeks ago, when I visited the great state of Iowa, I saw gas prices at $1.85 a gallon, the lowest price in four years, and falling rapidly.”
According to AAA, the average gas price in Iowa as of Feb. 24 was $2.55.
