Economists and business leaders react to Trump's State of the Union address
Business Insider
February 25, 2026
AI-Generated Deep Dive Summary
Donald Trump delivered his longest-ever State of the Union address, focusing on familiar themes like tariffs, lower consumer prices, and a new retirement plan. The two-hour speech, which set a record for length, included proposals aimed at addressing inflation, AI energy costs, and immigration. However, economists and business leaders reacted with mixed reviews to Trump's claims about tariffs, inflation, and his retirement savings initiative.
Prominent economist Paul Krugman criticized the speech, calling it misleading and overly optimistic despite ongoing affordability issues faced by many households. Krugman argued that Trump's focus on tariffs would likely worsen economic pressures rather than alleviate them, while also highlighting the lack of meaningful new policies in the address. On the other hand, Bill Ackerman praised Trump's retirement-savings proposal, which includes a federal match for workers without access to 401(k) plans. Ackerman described the plan as a significant policy moment with potential bipartisan appeal, noting its ability to expand wealth-building opportunities and reduce reliance on welfare programs.
Other voices added their perspectives: Peter Schiff warned that inflation is unlikely to improve under Trump, while Roger Altman expressed skepticism about the speech's impact on shifting public opinion. Overall, the mixed reactions reflect broader divisions in the business community over Trump's economic strategy. For business readers, understanding these differing viewpoints is crucial as they consider how Trump's policies may affect markets, trade relations, and economic growth.
The address underscores the ongoing challenges of addressing inflation and affordability while navigating a polarized political landscape. As experts weigh in on the speech's merits and shortcomings, businesses must evaluate how these policy proposals could impact their operations, consumer behavior, and long-term economic trends. The debate over Trump's approach highlights the complexities of balancing economic growth with social equity, making this an important topic for anyone tracking business and financial developments in the U.S.
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Originally published on Business Insider on 2/25/2026