Washington, Dec 18 (AP) President Donald Trump said in a White House speech Wednesday night that he was sending a USD 1,776 bonus check to US troops for Christmas, indicating that tariffs were funding the payments as he tried to reassure a worried public about the health of the economy.

Trump said 1.45 million military service members would get the “warrior dividend before Christmas.” “The checks are already on the way,” he said.

Yet his bonus payments for the troops come as millions of Americans are fretting about the costs of groceries, housing, utilities and their holiday gifts as inflation remains elevated and the labour market has meaningfully weakened in recent months.

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 high inflation on his predecessor, Joe Biden.

“Eleven months ago, I inherited a mess, and I'm fixing it,” Trump said.

His remarks came at a crucial time as he tries to rebuild his steadily eroding popularity. Public polling shows most US 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.

But the hard math internalised 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 per cent, up from 2.3 per cent 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” in which Trump announced import taxes that he later suspended and then readjusted several months later.

The unemployment rate has climbed from 4 per cent in January to 4.6 per cent. (AP) GRS GRS

US troop bonuses funded by tariffs aim to deliver $1,776 to service members amid inflation and labor weakness. President announced a USD 1,776 bonus for about 1.45 million military service members, stating the payments are funded by tariffs. The announcement links the tariff receipts and recent adjustments to import tax policy-announced in April, later suspended and readjusted-to observable economic effects, including a reacceleration of inflation (CPI rising from 2.3% to about 3%) and a weakened labour market (average monthly job gains of 17,000 since April and unemployment rising to 4.6%).