WASHINGTON, D.C. — October 26, 2026. President Donald Trump is making the economy a central part of his message ahead of the November 3 midterm elections, highlighting a multibillion-dollar automobile manufacturing project in Georgia while claiming that inflation has fallen sharply under his administration. However, the latest government figures tell a more complicated story: consumer prices are rising faster than a year ago, even as Audi moves forward with plans for its first U.S. manufacturing facility.
During an October 25 telephone interview on Fox News’ Sunday Morning Futures, hosted by Larry Kudlow, Trump credited his administration’s tariffs and economic policies with attracting automotive investments. He also said inflation had fallen to 1.7% over the previous three months, contrasting his record with that of former President Joe Biden. The comments followed Trump’s campaign appearance in Perry, Georgia, where Audi executives joined him to announce plans for a major manufacturing complex near Macon.
TRUMP CLAIMS INFLATION HAS FALLEN TO 1.7%, BUT OFFICIAL DATA SHOW 3.7%
Trump argued that his administration had substantially reduced inflation. However, the latest Consumer Price Index report from the U.S. Bureau of Labor Statistics showed annual inflation at 3.7% in September 2026, up from 3.4% in August. Consumer prices increased 0.6% during September alone, reflecting continued pressure from energy costs and other expenses.
The president did not identify the specific economic indicator or calculation behind his 1.7% figure. As stated, that claim cannot be reconciled with the standard annual CPI reading. His characterization of the inflation inherited from Biden as the highest in American history is also unsupported. Annual consumer price inflation was approximately 3% when Trump returned to office in January 2025, while inflation had reached a four-decade high of 9.1% in June 2022 during Biden’s presidency.
U.S. INFLATION: OFFICIAL FIGURES
12-month Consumer Price Index (CPI)
Bar scale: 0% to 4%. Trump cited a separate 1.7% inflation figure without specifying its calculation. The standard annual CPI reading was 3.7%.
AUDI GEORGIA FACTORY: PROJECT DATA
| Indicator | Planned value |
|---|---|
| Investment | Approximately $4 billion |
| Projected jobs | 4,500 |
| Annual capacity | Up to 200,000 vehicles |
| Site preparation | Expected 2027 |
| Full production | Early 2030s |
| Corporate approval | Final approval pending |
Data as of October 26, 2026. Historical CPI data and proposed factory figures, not real-time data or completed investment. Sources: U.S. Bureau of Labor Statistics and Audi AG .
AUDI ANNOUNCES $4 BILLION GEORGIA FACTORY AND 4,500 PROJECTED JOBS
The automobile manufacturing announcement, unlike the disputed inflation figure, is supported by official company and state government statements. Audi confirmed on October 25 that it plans to establish its first U.S. production facility at the Middle Georgia Megasite, investing approximately $4 billion and creating an estimated 4,500 jobs. The proposed operation is designed to produce up to 200,000 premium vehicles annually when it reaches full capacity.
Audi Chief Executive Gernot Döllner appeared with Trump during the October 24 rally in Perry, presenting the investment as part of the German automaker’s long-term expansion strategy in the United States. The factory is expected to focus on premium SUVs tailored to the North American market. Site preparation is expected to begin in 2027, with full production targeted for the early 2030s. The investment still requires final approval from Volkswagen Group’s supervisory board.
AUDI HAS NOT CONFIRMED CLOSING ITS MEXICO OPERATIONS
During the Fox News interview, Trump went beyond the confirmed investment announcement by claiming that Audi was closing operations in Mexico and Canada as production shifted to Georgia. The automaker’s official announcement does not confirm those closures.
Audi operates a manufacturing facility in San José Chiapa, Puebla, Mexico, where it produces the Q5. The new Georgia investment does not establish that the Mexican facility will close or move to the United States. Audi also has commercial operations in Canada but does not operate a vehicle assembly plant there. Trump’s statement about factories closing in both countries therefore lacks supporting confirmation from the company.
TARIFFS PLAY AN IMPORTANT ROLE IN AUDI’S U.S. EXPANSION
The planned Georgia factory also reflects the economic pressure facing international automakers that import vehicles into the United States. Trump’s administration has imposed higher tariffs on foreign-made automobiles, creating additional costs for manufacturers without substantial domestic production.
According to Reuters, tariffs cost Audi approximately €1.2 billion in 2025. Manufacturing vehicles inside the United States could help the automaker reduce its exposure to import duties while strengthening its position in the American premium SUV market. However, Audi’s investment also reflects longer-term considerations, including market demand, manufacturing flexibility and access to American consumers. Its exact financial benefits will depend on the plant’s final approval and implementation.
GEORGIA AND MICHIGAN BECOME KEY STOPS IN TRUMP’S MIDTERM CAMPAIGN
Trump’s economic message comes as Republicans and Democrats compete for control of Congress in the November 3 elections. At his October 24 Georgia rally, the president promoted the Audi project alongside Republican Senate and gubernatorial candidates. He continued campaigning the following day in Port Huron, Michigan, a state where automobile manufacturing and cross-border trade are major economic issues.
In Michigan, Trump defended his tariff policies and predicted progress in trade discussions with Canada, although he did not announce a finalized agreement. The state’s automotive industry has experienced uncertainty from changing trade conditions, making investment decisions, production costs and employment central issues for businesses and workers.
WHAT THE ECONOMIC DATA MEAN FOR AMERICAN CONSUMERS
The contrast between Trump’s statements and the official economic figures highlights an important distinction between investment announcements and broader economic conditions. A proposed $4 billion factory represents a potentially significant long-term investment, but the jobs and production capacity are projections rather than completed results. Similarly, new manufacturing investment does not by itself demonstrate that consumer inflation is declining.
The latest CPI report showed that gasoline prices rose 34.2% over the 12 months through September, while the broader energy index increased 20.4%. Those increases help explain why households continue facing pressure even as the administration promotes business investment and economic growth.
With Election Day approaching, the next developments to watch are Audi’s final corporate investment decision, the November 10 U.S. inflation report and whether announced manufacturing projects advance toward construction. For now, the Georgia project is supported by company disclosures, while the president’s inflation and factory-closure claims require substantial qualification.
