Trumponomics: Over a year into second term, Donald’s economic policy shows mixed results - report
Times of India
by TOI BUSINESS DESKFebruary 25, 2026
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More than a year into US President Donald Trump’s second term, his economic policies have yielded mixed results. While the economy has seen strong growth driven by tax cuts, deregulation, and a tech investment boom, challenges remain. Key issues include stalled job gains, persistent inflation concerns, and the Supreme Court’s recent ruling striking down Trump’s emergency tariffs, which had a significant impact on trade policy.
The US economy experienced a contraction early last year due to businesses front-loading imports ahead of expected tariffs. However, economic growth rebounded, exceeding expectations in subsequent quarters. The tax cuts from Trump’s “One Big Beautiful Bill” have contributed to this growth, alongside robust consumer spending and investment in artificial intelligence. Despite these positives, the trade deficit has widened, and analysts remain uncertain about whether tariffs will reduce the gap between imports and exports.
The manufacturing sector has seen output rise, but factory employment has declined during Trump’s second term, contradicting his goal of reviving US manufacturing through aggressive trade policies. The broader job market has also shown signs of stagnation, with monthly job gains slowing significantly last year. Unemployment remains low at 4.3%, but the labor market is further strained by Trump’s immigration crackdown, which has reduced both labor supply and demand.
Inflation has eased since the post-pandemic surge under former President Joe Biden, but year-over-year price growth remained upward at the end of last year. Analysts expect inflationary pressures to persist for several more months as the effects of earlier tariffs fade. Trump’s nomination of Kevin Warsh to lead the Federal Reserve has
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Originally published on Times of India on 2/25/2026