Trump’s Illegal War in Iran Is Crushing Working Families With Soaring Prices and Sluggish Growth

The latest government data lays bare the economic wreckage wrought by Trump’s illegal war in Iran. The Bureau of Economic Analysis reports that the Personal Consumption Expenditure (PCE) Price Index surged 3.5% over the past year, far outstripping the Federal Reserve’s 2% target. Inflation hit 0.7% in March alone, driven largely by a 21% spike in gasoline and energy prices as the Strait of Hormuz remains closed and crude oil prices top $100 a barrel.

Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez didn’t mince words: “Trump’s illegal war in Iran is a disaster for Americans’ budgets at home. Paychecks are lagging behind prices, and economic growth remains sluggish thanks to the president’s gross mismanagement.” Jacquez points out that economic relief is nowhere to be found under this administration as working families bear the brunt of these policies.

Trump’s tariffs continue to stoke inflation as well. Durable goods prices jumped 6.7% in the first quarter of 2026, with tariff-exposed categories like clothing and footwear rising 1% in March alone. These price hikes hit consumers directly, forcing households to spend faster than their incomes grow. In March, personal consumption rose 0.9% while disposable personal income increased only 0.6%, meaning families are dipping into savings or going into debt just to keep up.

The personal saving rate dropped to 3.6% in March, the lowest since October 2022, leaving many households with little cushion against Trump’s economic assault. Meanwhile, wage growth is woefully behind inflation. The Employment Cost Index showed wages and benefits rising just 0.9% in the first quarter of 2026, nowhere near the 4.5% inflation rate.

Despite a headline GDP growth rate of 2% in the first quarter, the economy is barely moving. Much of this growth is propped up by front-loaded imports and a rebound in AI and data center investments, not broad-based consumer demand. Imports surged 21.4%, masking underlying weakness. The housing market is also faltering, with residential investment plunging 8.1%, signaling trouble for one of the economy’s key sectors.

This economic snapshot exposes the real cost of Trump’s war and tariffs: working families squeezed by rising prices, stagnant wages, and an uncertain future. The administration’s reckless policies are not only fueling inflation but also undermining the country’s economic foundation. As Jacquez warns, “It’s no wonder Trump’s economic disapproval ratings are at an all-time high.” The question is how much longer American families can shoulder the fallout before demanding real accountability and change.