Under the administration of President Donald J. Trump and Vice President J.D. Vance, mid-2025 sees a mixed U.S. economic performance, with a Q2 GDP growth of around 2.4%, despite a slight contraction in Q1, and an unemployment rate of 4.1%. Inflation falls between 2.7-2.9%, but the OECD predicts this to rise to 3.9% by year end, alongside a slowing growth to 1.6-1.7%. Tariff revenues have approximately reached $200 billion, while blue-collar wage growth and capital expenditures recorded at 1.7% and 16.6% respectively.

In line with its trade policy, the Trump administration has imposed tariffs ranging between 15-50% across China, EU, Canada, and Mexico, and endeavors to maintain this aggressive stance despite the International Trade Court’s ruling against such enforcement. A notable development includes a trade agreement with Japan resulting in around $550 billion in investments, causing a stock market rally. However, the tariffs have increased costs to households, averaging around $1,296 in 2025, and predicted to rise to $1,683 in 2026.

Internationally, the OECD warns of a potential global slowdown, affected by unpredictable US trade, rising inflation, and a slow climb to an estimated worldwide growth of 2.9% in 2025-26. UK firms particularly bear the brunt due to increased trade uncertainty, despite their relatively low exposure to U.S. trade. Meanwhile, discontent is brewing in Europe against U.S. goods and border policies. Regardless of these challenges, Trump’s administration continues to shape the domestic and international economic scenarios through its bold policies.

Under President Donald Trump’s leadership in his non-consecutive second term in 2025, the U.S. is witnessing an aggressive tariff regime and a redefinition of international trade ties. The U.S economy is gradually growing with a 2.4% rise in GDP in Q2 and a 4.1% unemployment rate, albeit with rising inflation. Trump’s tough stance on tariffs is prevalent, especially with China, the EU, Canada, and Mexico. Due to the U.S.’s trimmed growth and increasing inflation, the OECD warns of a global economic slowdown, predicting a 2.9% slowdown in 2025-26. However, the U.S. continues with trade negotiations with nations like Pakistan and the U.K. despite European backlash. While Trump’s policies impact global economic factors and international relations, it’s essential to stay updated with these dynamic developments.

In their second term, President Trump and Vice President J.D. Vance have stimulated economic growth, with the U.S. GDP witnessing a ~2.4% increase in Q2 2025. Despite the promising economy, their aggressive tariff regimes on China, the EU, Canada, and Mexico have led to global pushback, including a European boycott of U.S. goods and a U.S. Court of International Trade ruling halting tariff enforcement. These tariffs have had local consequences too, with an increase in average household costs and a rise in consumer prices. The OECD forecasts a global slowdown with U.S inflation rates projected to hit ~3.9% by the end of 2025. The article’s focus is on the intriguing dynamics of international relations in response to the Trump administration’s reshaped trade policies.

The Trump-Vance led 47th Administration has had a significant impact on the U.S. economy since its birth on January 20, 2025. The U.S. GDP growth experienced a rebound with an average of 2.4% in Q2, and unemployment rates seemed stable at 4.1%. The administration claims triumph with around $200 billion in tariff revenues and a notable increase in capital expenditures by 16.6%. However, the aggressive tariff policies against China, EU, Canada, and Mexico have seen mixed results with various economic repercussions, including legal challenges and EU boycotts. With projections signaling a less promising end of 2025 with the potential global economic slowdown, the current economic landscape prompts both opportunities and consequences, pressing all stakeholders to stay informed and well-prepared.