Trump Administration 2025: A Comprehensive Look into Trade and Economic Policies

Today’s blog aims to provide an in-depth understanding of the 2025 U.S. administration under the leadership of President Donald J. Trump, the 47th president, and J.D. Vance, the vice president. We’ll be exploring the administration’s trade and economic policies and their implications both domestically and internationally.

U.S. Economic Indicators Mid-2025

As of mid-2025, the U.S economy portrays a complex picture. After a slight contraction in Q1, the GDP growth has bounced back to approximately 2.4% in Q2. Unemployment rates remain relatively low at around 4.1%, and inflation levels are stable with a core CPI of 2.7%-2.9%.

A closer look at the U.S Treasury report highlights some milestones such as tariff revenues hitting around $200 billion, a 1.7% growth in blue-collar wages, and a 16.6% rise in capital expenditures in the first half of 2025.

The Trump Administration’s Tariff and Trade Policies

Trump’s aggressive tariff regime has caught the world’s attention with baseline rates imposed on China, EU, Canada, and Mexico swirling around 15–50% post the August 1st deadline.

Among the key international trade relations, the negotiations with the EU at Turnberry golf resort aim for 15% baseline tariffs although the deal is yet to be sealed. The US-Japan trade agreement successfully reduced import duties to ~15%, leading to a surge in the market with investments valued around $550 billion.

On the other hand, trade sanctions on Canada and Mexico stand at 25% starting March 4, despite exemptions on numerous goods under USMCA. The stronger stance has led to retaliatory actions from both the above-mentioned nations.

International & Regional Implications

The OECD has issued warnings about a potential global slowdown. This results from rising inflation and a marginal reduction in U.S growth. The projection for global economic growth now stands around 2.9% for ’25-’26.

A study on UK firms revealed a modest negative impact due to trade uncertainties. However, the average exposure is low with only around 3% of revenue coming from U.S.

Legal & Socio-Political Backlash

Internally, the Court of International Trade ruled the tariffs imposed under the IEEPA exceeded presidential authority, blocking their enforcement in May 2025. The imposed tariffs have led to an average household cost of ~$1,296 in 2025 which is projected to rise to ~$1,683 in 2026.

Globally, a European boycott movement targeting U.S. goods has taken shape alongside travel warnings over U.S. border policies.

Conclusion

The Trump administration’s aggressive economic and trade policies have stirred up the global economic scenario in 2025. As uncertainty looms around the administration’s long-term impact, both practitioners and scholars await the unfolding of the U.S.’s international trade landscape.

Stay updated with our blog as we continue to provide accurate, timely responses on the U.S. administration’s policies and how they shape our future. For any immediate questions, use our live query service to get the most up-to-date information.