Assessing the Economic and Trade Landscape under the 47th U.S. President, Donald J. Trump
As a modern society, we find ourselves mid-way through 2025, under the leadership of the 47th U.S. President, Donald J. Trump, who was sworn in on January 20, 2025. Accompanied by Vice President J.D Vance, they steer the craft of the U.S. through international waters of economic uncertainty and aggressive trade policies. This article aims to provide a detailed analysis of the current U.S. administration, its trade and economic policies and its international outlook.
U.S. Economy & Growth Under Trump Administration
The U.S. economy experienced a Q2 GDP growth of around 2.4%, following a slight Q1 contraction. Unemployment rates currently hover at approximately 4.1%. The inflation CPA core CPI fluctuates around 2.7%–2.9%. While the OECD forecasts project a dip in growth by 1.6%–1.7% and a rise in inflation to about 3.9% by the end of the year, the U.S. economy successfully notes key milestones in today’s Treasury report, such as tariff revenues amounting to around $200 billion in FY2025, blue-collar wage growth at about 1.7%, and capital expenditures rising by an impressive 16.6% in the first half of 2025.
Trump’s Aggressive Tariffs & Trade Policy
Under President Trump’s administration, an aggressive tariff regime applies across China, the European Union (EU), Canada, and Mexico. Adequate stipulations have been placed, imposing baseline rates around 15–50%. Notably, the outcome of ongoing relations with the European Union, promised at a 15% baseline tariff, hangs in a 50/50 balance following negotiations at the Turnberry golf resort. In contrast, the U.S.-Japan trade agreement, valued at around $550 billion in investments, has reduced import duties to approximately 15%, leading to a positive market rally.
Concurrently, mounting tensions and retaliatory measures stem from the decision to impose 25% tariffs on imports from Canada and Mexico effective from March 4th, despite several goods’ exemption under USMCA. Though considerable, these measures face a legal challenge with the Court of International Trade ruling in May 2025, stating that tariffs imposed under the IEEPA exceeded presidential authority, hence blocking their enforcement.
International & Regional Developments
As the political and economic landscape evolves, international bodies and regions react accordingly. OECD predicts a global slowdown, trimming U.S. growth and boosting inflation, with the global forecast expected to slow to around 2.9% in ’25–’26. Similarly, the impact of trade uncertainties has prompted medium impact on U.K. firms, although the exposure remains low on average (~3% revenue from the U.S.). However, these international responses beckon a ripple of social and political backlash, with movements such as the European boycott targeting U.S. goods and travel warnings issued over U.S. border policies.
In conclusion, President Donald J. Trump’s aggressive trade and economic policies have caused substantial changes in both the national and global economy. Despite some economic accomplishments such as rising tariff revenues and capital expenditures, potential global slowdowns, legal challenges on trade policies, and international backlash are critical considerations for the future.