Economic Challenges and Policy Responses in the US Under Trump Administration in 2025
In 2025, the US economy faced significant challenges with a marked slowdown in job growth. Average monthly job gains in the first 11 months were about 55,000, a 67% decline from 2024 figures. Notably, October experienced a loss of 105,000 jobs, while November saw an increase of 64,000 jobs based on delayed data. Unemployment rose to 4.6% in November, the highest level in over four years.
Manufacturing employment lagged behind as factory jobs increased in only 2 out of 10 months since President Trump's return to office. Tariffs also saw a substantial increase, rising from an average of 2.4% to 16.8%, the highest since 1935. The implementation of these tariffs has been somewhat erratic and has posed difficulties for the White House.
Inflation, as measured by the Consumer Price Index (CPI), rose by 2.7% in November. While President Trump claimed that prices were falling, economists warned that the tariffs could contribute to price increases. Earlier in 2025, inflation had been on a downward trend.
In response to these economic issues, the administration introduced several policy measures including lowering some tariffs, providing $12 billion in aid to farmers, and considering potential stimulus checks funded by tariffs. These measures are associated with the One Big Beautiful Bill Act, although economists remain skeptical about the broad benefits of these policies.
Economic forecasts project about 2% GDP growth for both 2025 and 2026. Some advisers anticipate an economic pickup in the first quarter of 2026, but experts caution that these gains may not be widely felt across the American population.
President Trump has declared the beginning of a 'golden age' for America and promised tangible results within six months to a year amidst these economic conditions.
