Warren slams Trump’s bluff on affordability after State of the Union address

Democratic Sen. Elizabeth Warren has criticized President Donald Trump’s bluff after he claimed in his State of the Union address that he would “end” the affordability crisis and open a new front in a battle that could decide November’s midterm elections.

“Your arguments are in direct conflict with the everyday experiences of American families who struggle with rising prices for necessities like food, housing, health care, child care, and electricity,” Democratic Warren, D-Mass., said in a letter to Trump, sent late Wednesday and shared exclusively with CNBC.

“Despite your claims, we have not ‘solved’ affordability or ‘defeated’ inflation. On the contrary, prices for American households have skyrocketed over the past year,” said Warren, the top Democrat on the Senate Banking Committee.

Warren’s letter is the starting point for a frontal attack on Trump and Congressional Republicans ahead of the potentially affordable 2026 midterm elections. Trump’s approval ratings on the economy have plummeted as voters express concerns about the high cost of living, a contrast to his State of the Union address in which he said the economy was “doing well.”

Now, Democrats are seizing an opportunity to use affordability to oust Republicans from power in Congress. Warren made it clear that the letter was just the first attempt to bash the president on affordability as Democrats race around the country touting their economic message ahead of November.

“Over the next few weeks, I will be writing directly to government officials, business and industry representatives about your chaotic tariffs and failed economic policies. I’m demanding answers for Americans who are being forced to pay more for everything from groceries to housing,” Warren said.

Warren also sent a letter late Wednesday to: Amazon Chief Executive Officer Andy Jassy said online retailers have been slow to publicly say President Trump’s tariffs have contributed to price increases on their platforms since they were enacted. He also asked Amazon to answer a series of questions about its plans for future price increases, given President Trump’s pledge to explore ways to impose tariffs.

Spokespeople for Amazon and the White House did not immediately respond to CNBC’s requests for comment.

President Trump has at times hinted that he is serious about addressing affordability concerns. He has called for a cap on credit card interest, but he did not mention it in his speech. He also called for a ban on institutional investors buying homes, which he mentioned. Both are also priorities for Warren and the progressive left.

But with polls consistently showing voters’ growing economic concerns, President Trump used his State of the Union address to blame Democrats solely for low prices and claim his administration had solved the problem.

“You caused the problem,” the president said. “They knew what they were saying was a dirty, rotten lie. Their policies created high prices, and our policies are rapidly ending high prices.”

Although overall inflation has come down significantly from recent highs, prices for many everyday items remain high, especially compared to before the COVID-19 pandemic. Electricity prices are rising due to increased demand from data centers, food prices remain high, and housing costs continue to rise. President Trump’s tariff policy is also one of the reasons why prices remain high.

In his speech, President Trump doubled down on the possibility of imposing tariffs through other means after the Supreme Court struck down the authority he had used to impose them.

He said the tariffs “will continue to be implemented based on fully approved and verified alternatives.”

For Warren, it only provided ammunition.

“Rather than provide relief to consumers, we are pursuing across-the-board additional tariffs through other mechanisms, opening the door to a further wave of price increases,” he said in the letter.