An Overview of President Donald Trump’s Administration and Policies in 2025
Since his inauguration on January 20, 2025, 47th U.S. President Donald J. Trump, along with Vice President J.D. Vance, has made significant efforts to implement various economic and trade policies. Let’s dive into the details.
U.S. Economy and Growth
As an author and government contractor, based on verified economic indicators, the U.S. economy manifested moderate growth in mid-2025. The GDP showed an approximate growth of 2.4% in Q2 while experiencing slight contraction in Q1. These variations resulted in an overall unemployment rate of about 4.1%.
With treasury-reported milestones such as tariff revenues earning about $200 billion in FY2025 and blue-collar wage growth recorded at approximately 1.7%, the capital expenditures witnessed a sharp rise of about 16.6% in H1 2025. Experts forecast that the GDP growth will settle at around 1.6%–1.7% with inflation averaging 3.9% by the end of the year. However, the current core CPI stands between 2.7% and 2.9% as of mid-2025.
Tariffs & Trade Policy
Under President Trump’s administration, aggressive tariff regimes have been imposed across China, the EU, Canada, and Mexico, projecting baseline rates around 15–50% by August 1. This includes Trump’s negotiations at his Turnberry golf resort, aiming to set baseline tariffs to the EU at 15%, and a promising trade agreement with Japan that reduces import duties to around 15%.
In contrast, negotiations between the U.S. and China persist while Trump pushes a trade war with Canada and Mexico, imposing 25% tariffs on imports from both countries effective March 4. Retaliatory measures were taken by both Canada and Mexico following these aggressive policies. The Court of International Trade has ruled such tariffs as in excess of presidential authority, blocking their enforcement.
International and Regional Developments
The international landscape has also witnessed changes due to U.S.’s shifting economic policies. Warnings by the OECD of a global economic slowdown echo across industries. The decision-maker panel also found U.K. firms experiencing a modest negative impact due to trade unpredictability, recognizing an average of about only 3% revenue from the U.S.
Other ongoing trade negotiations, such as U.S.-U.K. and Pakistan’s nearing deal, continue to shape the global market. However, they have also ignited social and political backlash with Europe commencing a boycott movement targeting U.S. goods.
Impact of the 2025 Policies
The aggressive tariff policies have undeniably impacted businesses and average households. It is projected that the average cost for households could increase from ~$1,296 in 2025 to ~$1,683 in 2026, reducing market income by about 1.4%. It’s also expected that these policies will raise consumer prices by approximately 2% over the next two years.
Conclusion
The ongoing policies under the 2025 Trump administration unquestionably have significant implications, both nationally and globally. While some national economic indicators appear positive, the fluctuating market, contentious international relations, and potential rise in living costs raise pressing queries about the future economic landscape.