This article reviews the economic and trade policies under the 47th U.S. administration led by President Donald J. Trump in his second non-consecutive term, and Vice President J.D. Vance midway through 2025. Despite an initial contraction, the U.S. GDP recovered by 2.4% in Q2, amid consistent unemployment rates of 4.1%, and balanced inflation rates between 2.7%-2.9%. However, OECD’s end-of-year prediction signalizes a slight economic slowdown with an anticipated increase in inflation to 3.9%.

The Trump administration’s aggressive tariff regime, particularly with countries like China, EU, Canada, and Mexico, has roused global and domestic tensions. These tariffs are under scrutiny by the Court of International Trade for overreaching presidential authority.

OECD’s warning of a global slowdown and the ongoing trade negotiations with several countries contribute to a tense international stage. These, coupled with the backlash received due to U.S. border policies affecting foreign relations, have created a complex scenario for the current administration. The economy, thus, exists in a fluctuating state, where moderation in growth is expected by the end of 2025. The outcomes of these ongoing negotiations and policy decisions will significantly impact both national and international economies.

Under President Trump and Vice President J.D. Vance, the U.S. has seen significant changes in trade and economic policies with a primary focus on domestic economic growth. Despite a slight contraction in Q1, the U.S. has experienced a GDP growth rate of about 2.4% in Q2 2025. The administration has implemented aggressive tariff policies, with rates ranging from 15-50% on nations including China, the EU, Canada, and Mexico, resulting in tariff revenues of nearly $200 billion. However, these aggressive policies have triggered economic and diplomatic consequences. Domestically, households and businesses are dealing with increased costs due to the rising consumer price index. Globally, U.S’s actions have prompted international responses, including a European boycott movement. Experts recommend staying updated and understanding these current policies for informed decision making.

The 2025 Trump administration, featuring Vice-President J.D. Vance, has implemented aggressive trade and economic policies, including tariffs and redesigned trade agreements. The U.S. GDP in mid-2025 has grown by around 2.4%, with unemployment at 4.1%, and core CPI inflation between 2.7% and 2.9%. However, the OECD warns of a moderating growth rate and heightened inflation. Under Trump, tariffs have surged between 15% and 50% against numerous nations, and the cost to average households is expected to rise significantly. Meanwhile, global forecasts for economic growth have declined, and Europe has initiated a boycott of U.S. goods. Despite potential economic safeguards, concerns persist about escalating household costs and global economic slowdown.

In his second non-consecutive term starting January 20, 2025, President Donald Trump and Vice President J.D. Vance have introduced significant changes to U.S. economic and trade policies. Their policies have led to mixed economic results with a slight contraction in GDP growth in Q1, rebounding to 2.4% in Q2, stable unemployment at 4.1%, and projected inflation around 3.9% by year-end. Their aggressive tariff regime has caused a baseline rate of 15-50% on China, EU, Canada, and Mexico. However, progress has been made through a U.S.-Japan trade agreement reducing import duties to ~15%. The Court of International Trade ruled in May 2025 that tariffs imposed under the IEEPA exceeded presidential authority, projecting cost implications for households and consumer prices. The OECD warned of a global slowdown due to U.S. policies, affecting UK firms and stimulating European boycotts against U.S. goods. As these events unfold, it is imperative to stay updated with accurate information.