U.S. Administration and Economic Outlook as of Mid-2025

Introduction

Appraising the current state of politics and economy in America isn’t just relevant, it’s vital. So, here’s a profound evaluation about the 2025 U.S administration led by President Donald J. Trump and Vice President J.D. Vance, its economic policies, and international outlook. What lies ahead for our nation? Is the administration’s approach successful, and how is it impacting you?

Political Leadership

Donald J. Trump took office as the 47ᵗʰ President of the United States on January 20, 2025, with J.D. Vance as Vice President. In the ongoing term, they have introduced several key policies, forming an administration focused on assertive economic and trade measures.

U.S. Economy & Growth

As of mid-2025, the US GDP growth is moderately steady at 2.4% in Q2, following a slight contraction in Q1. The unemployment rate is stable at approximately 4.1%. Core CPI in terms of inflation stands at around 2.7%–2.9%. Predictions by OECD foresee the growth rate to settle at around 1.6%–1.7%, and inflation is projected to rise to 3.9% by year-end.

Significant financial achievements reported by the treasury include $200 billion in tariff revenues for FY2025, a 1.7% blue-collar wage growth, and a promising 16.6% increase in capital expenditures in H1 2025.

Tariffs & Trade Policy

In America’s international dealings, the Trump administration has aggressively applied tariffs—with baseline rates around 15–50%—on imports coming from China, EU, Canada, and Mexico. Trade relations are as follows:

• The US-EU trade deal negotiations are ongoing where tariffs are expected to set at 15%, but the agreement is still a toss-up.
• The US-Japan trade accord ensures reduced import duties to around 15%, and markets cheered on this $550 billion deal.
• Negotiations continue with China in Stockholm, aiming to extend a truce on the tariff surge above 55%.
• A trade dispute with Canada and Mexico has led to 25% tariffs on imports, despite exceptions on many goods under USMCA, leading to reciprocal actions from our neighbours.

However, these tariffs have faced a legal hurdle. In May 2025, the Court of International Trade concluded that tariffs imposed under the IEEPA overstepped presidential authority, thus blocking their enforcement. These tariffs are predicted to increase average household costs and decrease market income. A progressive pass-through is expected to raise consumer prices roughly 2% over two years.

International & Regional Developments

The OECD has warned of a global slowdown, with U.S. growth curtailed, an upward trend in inflation, and global growth slowed to approximately 2.9% in 2025–26. UK firms have reported minor negative impacts due to trade uncertainties. Simultaneously, other notable trade negotiations include the progressive U.S.-U.K, and Pakistan deal prior to the August 1 deadline. This situation has provoked backlash in Europe with a boycott movement against U.S. goods and travel alerts against U.S. border policies.

Conclusion

Assessing the current administration’s approach gives insight into our nation’s future. Indeed, the economic policies and behaviour on international platforms are key drivers of America’s growth. As citizens, the need to stay informed remains of utmost importance.

If you wish to stay updated on the latest news on U.S. politics and economy, make sure to follow reliable news sources and engage in fact-based discussions.