The Trump Decision: How the 47th Administration is Shaping U.S. Economy and Growth
If you’ve been following the economic landscape under the administration of Donald J. Trump, the 47th United States president, and Vice President J.D. Vance, then you’re aware it’s been quite an eventful year. Established on January 20, 2025, the duo has reshaped the conversation on U.S. economic policy both at home and abroad.
In today’s blog post, we explore the key policies, economic indicators, and global impact of the Trump administration thus far in 2025. We’ll delve into where the economy stands, the dynamics of the administration’s trade policy, and the international developments surrounding the U.S. Let’s dive in.
The State of the U.S. Economy
Notably, the U.S. GDP growth has hovered around 2.4% in Q2, rebounding from a slight Q1 contraction. Meanwhile, the unemployment rate has leveled off to an average of 4.1%. On the inflation front, the core CPI sits between 2.7%–2.9%. However, OECD forecasts suggest a less rosy end to 2025, projecting growth of around 1.6–1.7% and inflation hitting 3.9%.
Nonetheless, the administration celebrates several treasury-reported milestones, such as impressive tariff revenues amounting to approximately $200 billion in FY2025. Meanwhile, blue-collar wage growth is estimated at 1.7%, and capital expenditures are on an uptick, showing a substantial increase of around 16.6% in H1, 2025.
Tariffs and Trade Policy
Under Trump’s administration, the U.S. has implemented an aggressive tariff regime across China, EU, Canada, and Mexico, resulting in baseline rates falling between an astonishingly high 15–50% by early August 2025. The impact, as you might guess, has been profound.
While trade relations with Japan have benefited from a new deal that reduces import duties to about 15%, negotiations with the EU hang in the balance. Indeed, the outcome of a major agreement, aimed at pushing baseline tariffs down to 15% at Trump’s Turnberry golf resort, hangs in a precarious “50/50” balance.
However, not all has gone smoothly. Legal challenges have arisen against Trump’s tariff enforcement, with the Court of International Trade ruling in May 2025 that the application of these tariffs undermines presidential authority.
International Developments and Repercussions
The OECD has issued dire warnings of a potential global economic slowdown with the U.S. growth being trimmed, inflation rising, and an overall global forecast slowdown to about 2.9% in 2025-26. Backlashes in the form of European boycotts on U.S. goods and travel warnings over U.S. border policies further demonstrate international dissatisfaction.
Takeaways
The economic policies implemented by the 47th U.S. administration under President Donald Trump undoubtedly have had broad-ranging impacts. While some sectors rejoice in newfound growth and opportunity, others are left grappling with the consequences.
As we continue to observe the unfolding panorama of U.S. economic dynamics and international trade relations, it will be crucial for all stakeholders to stay informed and prepared for the changing landscape.
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