US Administration, Economic Policies, and Global Outlook: Mid-Year Review 2025
Welcome to our mid-year review of United States administration, its economic policies, and their ripple effects on the global economic stage. As we delve deeper, we remind you that the world of politics and economies is complex and ever-changing. However, it is essential to stay informed about these developments as they have far-reaching impacts on our lives.
Leadership under the 47th President: Donald J. Trump
Donald J. Trump was sworn in as the 47th President of the United States on January 20, 2025. Serving alongside him as Vice President is J.D. Vance, known for his bestselling memoir “Hillbilly Elegy”. With these key players at the helm, let’s now explore the most decisive measures taken in relation to the U.S. economy.
U.S. Economic Indicators: A Speed Bump on the Road to Growth
The ongoing quarters of 2025 indicated a GDP growth of approximately 2.4% in Q2, following a slight contraction in Q1. The unemployment rate, meanwhile, hovers around 4.1%. The core CPI suggested an inflation rate between 2.7% and 2.9%. OECD forecasts point to a muted growth rate of around 1.6%-1.7% and an inflation rate of about 3.9% by year-end.
Aggressive Tariff Regime: A New Norm
Highlighting the economic policy prominently under President Trump’s administration is the aggressive tariff regime. Starting off with baseline rates around 15-50%, Trump imposed tariffs across various nations, including but not limited to China, EU, Canada, and Mexico. The tariffs have had an average cost of about $1,296 per household in 2025, projected to soar to nearly $1,683 in 2026. This policy is expected to result in consumer prices gradually inching up by about 2% over the next couple of years.
International Outlook: Tariffs and Trade Uncertainty Clouding Global Growth
On the international front, the new tariff policy and trade tensions are fueling uncertainty. The OECD has issued warnings of a looming global slowdown, slashing growth forecasts to a tepid 2.9% for the next two years. The ongoing negotiations and tariff wars echo across the globe, enticing backlash from European countries with boycott movements of U.S. goods.
Social and Political Reprecussions
International relationships face tumultuous times as countries scramble to react and strategize over U.S. policies. Trade negotiations have been tumultuous, while the backlash from stringent U.S. border policies have provoked travel warnings from European agencies.
Conclusion
Midway through 2025, under the leadership of the 47th U.S. President, Donald J. Trump, significant economic and policy changes have been a key focus. The aggressive tariff regime has left its mark both domestically and internationally – instigating economic slowdown, increased household spending, and roiled global trade relations. Looking ahead, these policy changes will continue to sculpt the global economic landscape, and only time will reveal the ultimate results. Stay tuned for our continued coverage of the U.S. Administration and its economic policies in 2025.