The 2025 U.S. administration under President Donald Trump and Vice President J.D. Vance has instigated significant changes to the country’s economic and trade policies, with noticeable impacts domestically and globally. Focused on various key policy initiatives, the diverse cabinet is setting the pace for the new administration’s guidelines. By mid-2025, the U.S. GDP growth stood at 2.4% in Q2, with tariff revenues of $200 billion, blue-collar wage growth at 1.7%, and a 16.6% rise in capital expenditures for H1 2025. In terms of tariffs and trade policy, President Trump imposed 15-50% rates across China, EU, Canada, and Mexico. Yet, while U.S-China negotiations are ongoing, there has been a 25% tariff on imports from Canada and Mexico since March 4. The shifting policies are causing international concerns, with warnings of a potential global economic slowdown from bodies like the OECD. However, optimistic negotiations with countries like the U.K. and Pakistan are underway. The U.S. economic landscape is expected to keep evolving in line with these policy shifts.

Since its inauguration in January, the 2025 Donald J. Trump and J.D. Vance administration has implemented several economic policies with both domestic and international effects. By mid-2025, despite a contraction earlier in the year, the US saw a 2.4% GDP growth and added tariff revenues of approximately $200 billion. The administration has taken a strong tariff agenda; however, robust negotiations (especially with EU, Canada, and Mexico) have led to disagreements and trade uncertainties. A change in Japan’s trade relations led to a market rally, but an increase in average household costs is predicted due to these policies. Internationally, these changes, coupled with global economic slowdown, have led to mixed responses from various nations. Despite these complexities, the article maintains that understanding the administration’s economic numbers is crucial for informed decisions and interpretations.

The article examines the economic and global effects of the 2025 U.S. administration under President Donald Trump and Vice President J.D. Vance. The U.S. has seen a GDP growth of 2.4% in Q2 2025, but predictions indicate a dip to 1.6%-1.7% with an inflation rise to 3.9% by the year’s end. Unemployment stands at roughly 4.1%, and CPI inflation is around 2.7% – 2.9%. A noteworthy positive is the growth of blue-collar wages and increased capital expenditures. However, it remains unclear how these trends will sustain against the administration’s stringent tariff policies.

Trump and Vance’s administration has imposed tariffs between 15 and 50% on countries including China, the EU, Canada, and Mexico. This has triggered global negotiations with varied outcomes. EU negotiations seem uncertain, though a U.S.-Japan trade agreement has slashed import duties to around 15% and U.S.-China talks are ongoing. Conversely, a trade war with Canada and Mexico ignites, with a 25% tariff on imports in place. These policies have been criticized by the Court of International Trade, which argues that the tariffs exceed Presidential authority.

The Organization for Economic Co-operation and Development (OECD) has warned about a possible global economic slump, due to the U.S’s diminished growth and rising inflation. While U.S.-U.K. and Pakistan are nearing a trade agreement, a European boycott on U.S. goods is growing. Border policies have also led to travel warnings, although the impact on U.K. firms appears minor. The overall economic and trade patterns of 2025, though transformative, face uncertainty and global backlash.

The Trump-Vance administration’s economic and trade policies in 2025 have significantly impacted international and domestic markets. The US economy showed volatility with slight GDP contraction in Q1, recovery in Q2, a steady unemployment rate of around 4.1%, and an inflation surge to between 2.7% – 2.9%. Their trade policy featuring aggressive tariffs on several countries has stirred reactions globally, leading to a potential global slowdown and social-political backlash but also encouraging trade deals like the US-Japan agreement. Stay informed as the economic landscape continues to evolve due to these strategies. #Politics #Economy #IFI2025 #TradePolicy