• Latest
  • Trending
  • All

Has Trump promised too much on the US economy?

January 18, 2025

Trump calls off livestream of Fort Hood attacker’s execution by firing squad

October 15, 2026

UK threatens visa bans for Eritrea over migrant return policy

October 15, 2026

At least 27 pupils and teacher killed after Pakistan school roof collapses

October 15, 2026

Russia accuses Ukraine of attacking oil refinery after Zelensky says strikes to resume

October 15, 2026

Brazil’s Congress approves shorter working week in win for Lula

October 15, 2026

Hundreds of IDF investigations into killings without public outcome, BBC Verify finds

October 15, 2026

US teenager appears in court over alleged Hindu temple shooting plot

October 15, 2026

NI health: Hospital doctors to strike as pay dispute continues

October 15, 2026

Why is Starlink internet so important in the Ukraine war?

October 15, 2026

Thousands of NI workers to get pay bump as Real Living Wage rises

October 15, 2026

Burnham had two hospitality dinners with Man City chairman, deleted records show

October 15, 2026

Anthropic flags revenue surge to investors ahead of stock market debut

October 15, 2026
News
  • Login
  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More
Thursday, October 15, 2026
No Result
View All Result

NEWS

3 °c
London
8 ° Wed
9 ° Thu
11 ° Fri
13 ° Sat
  • Home
  • Video
  • World
    • All
    • Africa
    • Asia
    • Australia
    • Europe
    • Latin America
    • Middle East
    • US & Canada

    Trump calls off livestream of Fort Hood attacker’s execution by firing squad

    UK threatens visa bans for Eritrea over migrant return policy

    At least 27 pupils and teacher killed after Pakistan school roof collapses

    Russia accuses Ukraine of attacking oil refinery after Zelensky says strikes to resume

    Brazil’s Congress approves shorter working week in win for Lula

    Hundreds of IDF investigations into killings without public outcome, BBC Verify finds

    US teenager appears in court over alleged Hindu temple shooting plot

    Sydney teen charged with murder of boy who was shot in face

    Republic of Ireland: Public sector strike begins

  • UK
    • All
    • England
    • N. Ireland
    • Politics
    • Scotland
    • Wales

    Burnham had two hospitality dinners with Man City chairman, deleted records show

    Sussex time capsule celebrates 100 years of Winnie-the-Pooh

    We are behind you and that will not change, PM tells Zelensky

    Swimmer Archie Goodburn thanks prime minister as brain cancer review announced

    Ji-sung Eom racist abuse: Millwall boss Alex Neil criticised for stoppage comments

    Waterford: Vigil held after murder of four family members

    Zelensky and Burnham to meet in Downing Street

    Family pays tribute to ‘warm and engaging’ man killed in tiger attack

    Man killed in tiger attack identified as William Chapman

  • Business
    • All
    • Companies
    • Connected World
    • Economy
    • Entrepreneurship
    • Global Trade
    • Technology of Business

    Thousands of NI workers to get pay bump as Real Living Wage rises

    Netflix to shed 1,000 jobs in steepest cuts since 2022

    US inflation rises more than expected – here’s what is happening with prices

    Shropshire heating oil users face tough choices as prices rise

    Poundland in rescue talks as owners seek buyer

    Three things we’ve learnt about the UK economy from the IMF

    Cost-of-living struggles inspire new supermarket in Newcastle-under-Lyme

    Lego fraudster among last year’s most high-profile insurance scammers

    Healey faces £35bn Budget challenge to meet spending pledges, says think tank

  • Tech
  • Entertainment & Arts

    Meghan hits red carpet at Power of Women in Hollywood

    Margot Robbie unable to speak at Saltburn premiere

    Barbra Streisand: Siri can now pronounce my name

    Wes Anderson’s The Grand Budapest Hotel inspires cinema’s look

    Taylor Swift/ Travis Kelce romance reaches White House

    The Killers booed at Georgia concert after inviting Russian fan on stage

    Watch: Memorable moments from Parkinson's star-studded show

    Tom Jones: Neighbour surprised to find singer in flat below

    Black Country Folk Festival showcases local musicians

    Watch: Australians set new world record with Tina Turner dance

  • Science
  • Health
  • In Pictures
  • Reality Check
  • Have your say
  • More
    • Newsbeat
    • Long Reads

NEWS

No Result
View All Result
Home Business Economy

Has Trump promised too much on the US economy?

January 18, 2025
in Economy
11 min read
251 2
0
493
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


EPA Trump gives economy speech in PennsylvaniaEPA

Trump gives economy speech in Pennsylvania

Donald Trump has promised big changes for the world’s largest economy.

An “end to the devastating inflation crisis”, tariffs and big cuts to taxes, regulation and the size of government are all on the agenda.

This combination, he says, will ignite an economic boom and revive withering faith in the American dream.

“We’re at the beginning of a great, beautiful golden age of business,” he pledged from the podium at Mar-a-Lago earlier this month.

But looming over the president-elect are warnings that many of his policies are more likely to hurt the economy than help it.

And as he prepares to set his plans in motion, analysts say he is about to run into political and economic realities that will make it hard to deliver all his promises.

“There’s no clear path forward at this time for how to meet all these goals because they’re inherently contradictory,” said Romina Boccia, director of budget and entitlement policy at the Cato Institute.

Here’s a closer look at his key promises.

Tackling inflation

What Trump promised:

“Prices will come down”, he said repeatedly.

It was a risky pledge – prices rarely fall, unless there is an economic crisis.

Inflation, which measures not price levels but the rate of price increases, has already come down significantly, while proving tough to stamp out completely.

What complicates it:

Trump pinned his claim to promises to expand already-record US oil and gas production, reducing energy costs. But the forces that affect inflation, and energy prices, are mostly outside presidential control.

To the extent that White House policies make a difference, analysts have warned that many of Trump’s ideas – including tax cuts, tariffs and migrant deportations – risk making the problem worse.

Economist John Cochrane of the right-leaning Hoover Institution said the big question facing the economy is how Trump will juggle “tension” between the more traditional pro-business parts of his coalition and the “nationalists” who are focused on issues such as border control and rivalry with China.

“Clearly both camps can’t get what they want,” he said. “That’s going to be the fundamental story and that’s why we don’t know what’s going to happen.”

Chart showing inflation through Obama, Trump and Biden presidencies.

What Trump voters want:

Inflation promises were key to Trump’s victory but by many measures, such as growth and job creation, the economy overall was not in the dire straits he painted on the campaign trail.

Since his win, he has tried to lower expectations, warning it would be “very hard” to bring down prices.

Amanda Sue Mathis, 34, of Michigan, says she thinks Trump’s promises are feasible but could take time.

“If anybody can make better deals to make things more affordable for Americans, it’s Donald Trump,” she said. “He literally wrote the book on the art of deal making.”

Amanda Sue Mathis Amanda Sue Mathis wears a red Make America Great Again hat while crouching behind a purple Women for Trump sign in her yard, which is full of autumn leaves. Other signs include a navy Trump campaign sign and a sign that says: "Please be polite with fireworks. Combat veteran lives here."Amanda Sue Mathis

Amanda Sue Mathis

Imposing blanket tariffs

What Trump promised:

Trump’s most unorthodox economic promise was his vow to place tariffs – a border tax – of at least 10% on all goods coming into the US, which would rise to more than 60% for products from China.

He has since ramped up the threats against specific countries, including allies such as Canada, Mexico and Denmark.

Some of Trump’s advisers have suggested the tariffs are negotiating tools for other issues, like border security, and he will ultimately settle for a more targeted, or gradual approach.

What complicates it:

The debate has raised speculation about how aggressive Trump will decide to be, given the potential economic risks.

Analysts say tariffs are likely to lead to higher prices for Americans and pain for companies hit by foreign retaliation.

And unlike Trump’s first term, any measures will arrive at a delicate moment, as the long-running US economic expansion appears to be in its final stages.

Even if the toughest tariffs never materialise, the policy debate alone is generating uncertainty that could depress investment and reduce growth in the US by as much as 0.6% by mid-2025, according to Oxford Economics.

“They’ve got a very limited margin for error,” Michael Cembalest, the chairman of market and investment strategy for JP Morgan Asset Management said in a recent podcast. He warned the desire for a major overhaul was likely to “break something”, though what remains to be seen.

Trade lawyer Everett Eissenstat, who served as a White House economic adviser during Trump’s first term, said he was expecting an across-the-board tariff, but acknowledged the plan would compete with other goals.

“There’s always tensions. There’s never perfection in the policy world. And obviously one of the reasons that I think he was re-elected is concerns over inflation,” he said.

“We’re in a different world [than the first term] and we’ll have to see how that plays out,” he said.

What Trump voters want:

Lifelong Republican Ben Maurer said he wanted Trump to focus on the wider goal of reviving manufacturing in the US, rather than tariffs per se.

“I feel like it’s more of a negotiation tactic than an actual policy route,” said the 38-year-old, who lives in Pennsylvania.

“Not saying he won’t put tariffs on anything – I think he will – but I think it’s going to be more strategic of exactly what he puts tariffs on. I support that and I feel like his judgement is good enough to decide what to tariff.”

Ben Maurer Ben Maurer wears a blue hoodie and black CAT baseball cap in front of a white pickup truckBen Maurer

Ben Maurer

Lower taxes, cutting spending

What Trump promised:

He has put forward a growth plan – lower taxes, less regulation and a smaller government, which he says will unleash American business.

What complicates it:

But analysts say cutting regulation might take longer than expected. And Trump is widely expected to prioritise extending expiring tax cuts above cutting spending.

Ms Boccia of the Cato Institute said she expected borrowing to surge under the Trump administration and the rise to add to inflation pressures.

In financial markets, those concerns have already helped to drive up interest rates on government debt in recent weeks, she noted.

Though Trump will also face some resistance from those inside his party worried about already high US debt, Ms Boccia said extending the tax cuts – projected to add more than $4.5tn to US debt over the next decade – seemed all but certain.

By contrast, Trump ruled much of the budget off limits during his campaign when he promised to leave big programmes, such as Social Security, unchanged.

The so-called Department of Government Efficiency (DOGE) led by Elon Musk and Vivek Ramaswamy has also publicly scaled back its ambitions.

“The signals that the market is sending right now are getting picked up by economists but not really by Washington,” she said. “In the end, it is politically taking the path of least resistance.”

Graphic showing rising US debt over time and over presidencies

What Trump voters want:

Mr Maurer said shrinking the bureaucracy was key to his hopes for the administration.

“Government spending is absolute insanity,” he said.

Additional reporting by Ana Faguy



Source link

Tags: economypromisedTrump

Related Posts

US inflation rises more than expected – here’s what is happening with prices

October 14, 2026
0

Inflation has risen to 3.7% in the year to September, which is a higher-than-expected increase fuelled by petrol prices.Vehicle...

Three things we’ve learnt about the UK economy from the IMF

October 13, 2026
0

There is increased concern about how much money countries are borrowing, but the IMF said the UK is doing...

Healey faces £35bn Budget challenge to meet spending pledges, says think tank

October 12, 2026
0

Chancellor John Healey faces having to find £35bn to avoid cuts to public spending while meeting defence promises in...

  • Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

    680 shares
    Share 272 Tweet 170
  • Belgian footballer arrested in cocaine investigation

    535 shares
    Share 214 Tweet 134
  • Next to raise prices to help pay for rising wage costs

    534 shares
    Share 214 Tweet 134
  • South Wales Police officers injured, one arrested

    526 shares
    Share 210 Tweet 132
  • ‘It stirred the people to breathless wonder and scalding abuse’: The tumultuous history of the Sydney Opera House

    521 shares
    Share 208 Tweet 130
  • Trending
  • Comments
  • Latest

Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

January 16, 2025

Belgian footballer arrested in cocaine investigation

January 27, 2025

Next to raise prices to help pay for rising wage costs

January 7, 2025

World Cup 2022: TikTok brings football fever to millions of fans

0

UK economy will get worse before it gets better, warns chancellor

0

One of Central America’s most active volcanoes erupts again

0

Trump calls off livestream of Fort Hood attacker’s execution by firing squad

October 15, 2026

UK threatens visa bans for Eritrea over migrant return policy

October 15, 2026

At least 27 pupils and teacher killed after Pakistan school roof collapses

October 15, 2026

Categories

World

Trump calls off livestream of Fort Hood attacker’s execution by firing squad

October 15, 2026
0

US President Donald Trump has called off plans to livestream the execution of former US army psychiatrist Nidal Hasan...

Read more

UK threatens visa bans for Eritrea over migrant return policy

October 15, 2026
News

© 2023 GODJ - NEWS CORP - news.godj.com.

Explore NEWS.GODJ.COM

  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More

Follow Us

  • Home Main
  • Video
  • World
  • Top News
  • Business
  • Sport
  • Tech
  • UK
  • In Pictures
  • Health
  • Reality Check
  • Science
  • Entertainment & Arts
  • Login

© 2023 GODJ - NEWS CORP - news.godj.com.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.