A Deep Dive into the 2025 U.S Administration’s Trade & Economic Policies
As we observe the evolution of the Trump administration into its second non-consecutive leadership as the 47ᵗʰ President of the United States, we can delve into the prevailing economic conditions, trade policies, and global outlook. Accompanied by Vice President J.D. Vance, Trump’s reign impacts not just the U.S but the global economy.
U.S. Economy & Growth at Mid-2025
With a slight contraction in Q1, the U.S. economy bounced back exhibiting a GDP growth of approximately 2.4% in Q2 while unemployment levels around 4.1%. The core CPI indicating inflation is hovering between 2.7%-2.9%. The OECD outlooks are projecting growth around 1.6%-1.7% with inflation reaching 3.9% by the end of 2025.
Updates on Tariffs and Trade Policies
The aggressive tariff regime imposed by the Trump administration across China, E.U., Canada, and Mexico, saw rates around 15-50% by August 1. The trade war between the U.S., Canada, and Mexico saw 25% tariffs on imports effective from March 4, significantly impacting the average household cost which is expected to bel around $1,296 in 2025 and would rise to $1,683 in 2026. This is expected to reduce the market income by 1.4%.
International and Regional Developments
In light of these changes, the OECD warns of a global slowdown, with global forecasts of growth slowing to 2.9% in 2025-2026. The EU in particular, has spearheaded a boycott movement against U.S. goods in response to U.S. border policies. Meanwhile, the U.S. is also advancing in its trade negotiations with the U.K. and Pakistan before the August 1 deadline.
Overview and Takeaway
Given the changes in economic and trade policies, the U.S. and global economy are undergoing significant adjustments. While there are perceived benefits with wage growth and increase in capital expenditures, it also brings challenges in form of inflation and retaliatory trade measures from other nations. To keep updated and for accurate data, please conduct a web search to get the latest information.
Call to Action
Stay informed about the latest changes in U.S. and global economies by keeping up-to-date with the latest news and developments. Your understanding of these complex issues can help shape your decisions and future outlook.