Inside The Trump-Vance Administration: An Overview of Key Economic Policies and Outlook For 2025
As of mid-2025, the United States continues to navigate through a shifting economic landscape. The Trump-Vance administration, with Donald J. Trump serving his second non-consecutive term as the 47ᵗʰ President and J.D. Vance as Vice President, is playing an active role in shaping the course of trade and economic policies. Let’s examine the key developments so far.
Mid-year Economic Indicators and the Future Outlook
Despite experiencing a mild contraction in Q1, the U.S. economy made a comeback in Q2 with a GDP growth of approximately 2.4%. The unemployment stands at an acceptable ~4.1%, while inflation sits within a close range of 2.7%–2.9% according to core CPI results. Additionally, the U.S. Treasury reported achievements such as notable tariff revenues amounting to around $200 billion in FY2025, a growth in blue-collar wages recorded at about 1.7%, and a surge in capital expenditures rising by ~16.6% during H1 2025. As per OECD forecasts, it is projected that growth will be around 1.6%–1.7% with inflation nearing 3.9% by the end of the year.
Trade Policy in Focus: Tariff Regime
President Trump’s aggressive trade policy in 2025 encompasses substantial tariff regimes across China, the EU, Canada, and Mexico with baseline rates around 15-50%. In an atmosphere of heightened trade tension, there have been key negotiations like the EU talks at the Turnberry golf resort aiming for 15% baseline tariffs, and the U.S.-Japan trade agreement which led to robust market reactions. Furthermore, ongoing U.S.-China negotiations are taking place in Stockholm ahead of an August 12 deadline to extend the tariff truce over the already high tariffs above 55%.
Legal Obstacles and Swift Resolutions
A significant wrinkle in President Trump’s trade policy arose in May 2025 when the U.S Court of International Trade ruled that tariffs imposed under the IEEPA exceeded presidential authority, preventing their enforcement. Despite this legal challenge, the administration remained steadfast in its trade approach.
International and Regional Updates
On the broader economic stage, the OECD had issued a warning about a global slowdown with trimmed US growth and inflation on the rise. Meanwhile, trade uncertainties have a modest negative impact on UK firms, with a decision-maker panel finding that companies have a relatively low exposure averaging around 3% revenue coming from the U.S. Additionally, other trade negotiations, such as the U.S.-U.K. agreement, as well as deals with Pakistan, are poised for completion by the August 1 deadline.
In conclusion, despite legal challenges and global uncertainties, the Trump-Vance administration persists in its mission to reshape U.S. trade and economic policies. Nevertheless, as 2025 progresses, it will be crucial to monitor these developments and their impact on the U.S. and global economies.
Stay with us as we continue to bring you timely and accurate updates. Please remember, for the latest information, always conduct a web search to confirm the information at hand.