Trump’s Economy, One Year Later

Foreign Policy

by Cameron Abadi and Adam Tooze

February 20, 2026

AI-Generated Deep Dive Summary

President Donald Trump’s economic policies have been a focal point of his presidency, with significant changes made to trade and immigration laws. As he prepares for his second term State of the Union address, attention turns to whether these policies have met their intended economic goals. Recent discussions with economist Adam Tooze highlight key questions about the impact of Trump’s tariffs, the effectiveness of his immigration strategy, and concerns over potential corruption within his administration. One major issue is the decline in inflation and its relationship with affordability. While economists note that real wages have slightly increased for lower-income Americans, many still struggle with the rising cost of living. This contradiction arises because while wages have gone up, they may not be enough to cover essential expenses like housing, healthcare, and childcare. Tooze explains that this creates a sense of financial instability despite overall economic growth. The affordability crisis is further complicated by structural issues in the economy. For example, high prices for big-ticket items like apartments or college loans can make achieving middle-class stability feel out of reach. This disconnect between personal financial health and long-term affordability highlights a broader societal challenge. Many Americans report feeling financially secure on a day-to-day basis but struggle to achieve their long-term goals due to these high costs. This issue is particularly relevant for political readers as it ties into the ongoing debates about economic inequality and policy effectiveness. The conversation raises questions about whether Trump’s policies have truly addressed the needs of everyday Americans or if they have exacerbated existing challenges. Understanding these dynamics is crucial for evaluating both his economic legacy and the broader implications for U.S. politics.

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Originally published on Foreign Policy on 2/20/2026