Trump’s Economy Falters Amid Jobs Slowdown, Rising Inflation/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump’s economic agenda is under pressure as new data reveals slowing job growth, rising inflation, and weaker-than-expected GDP performance. His sweeping tariffs and tax reforms are reshaping the economy but sparking voter and market uncertainty. With midterm elections looming, economic turbulence presents political risks for the Trump administration.
Trump’s Economy Under Pressure – Quick Looks
- Jobs growth slowing; only 73,000 jobs added in July.
- Manufacturing has lost 37,000 jobs since April’s tariff hikes.
- Inflation rose to 2.6%, driven by imported goods.
- GDP growth fell to under 1.3% in 2025, down from 2.8% in 2024.
- Trump blames Fed Chair Powell, demands lower interest rates.
- Tariff increases cause economic uncertainty and potential voter backlash.
- Trump fired BLS commissioner after poor jobs report.
- Only 38% of Americans now approve of Trump’s economic leadership.
- White House remains optimistic, claiming “the best is yet to come.”
- Experts warn Trump’s economic gamble may backfire by 2026.
Trump’s Economy Falters Amid Jobs Slowdown, Rising Inflation
Deep Look
WASHINGTON — President Donald Trump’s promises of an economic “golden age” face growing skepticism, as new economic indicators reveal a fragile recovery and rising uncertainty tied to his aggressive policy agenda. More than six months into his second term, Trump’s restructuring of trade, taxes, and spending is beginning to yield mixed—and potentially troubling—results.
On Friday, a discouraging jobs report painted a grim picture: U.S. employers added just 73,000 jobs in July, following similarly weak numbers in May and June. The figures, revised sharply downward from earlier estimates, show a three-month slowdown in hiring across key sectors, including a loss of 37,000 manufacturing jobs since Trump’s new tariffs took effect in April.
In response, Trump swiftly fired the head of the Bureau of Labor Statistics, accusing the agency of political manipulation—though he offered no proof. “Important numbers like this must be fair and accurate,” Trump posted on Truth Social. “The Economy is BOOMING.”
But the data tell a more complicated story.
Economic Growth Slows as Tariffs Take Hold
Trump’s economic policies have had a swift and sweeping impact. His latest tariff hikes, part of a broader strategy to pressure trade partners and revive domestic production, are starting to reshape consumer prices. According to a Thursday report, inflation ticked up to 2.6% year-over-year, with appliances, furniture, toys, and games seeing the biggest jumps—products heavily affected by import taxes.
Meanwhile, the economy’s overall growth has cooled. A GDP report released Wednesday revealed that the U.S. economy grew at an annualized rate of less than 1.3% in the first half of 2025—down from 2.8% in 2024.
“We’re adding very few jobs. The economy’s been growing very slowly,” said Guy Berger, senior fellow at the Burning Glass Institute. “It just looks like a ‘meh’ economy is continuing.”
Despite the concerning numbers, Trump continues to champion his economic reforms, pointing to deregulation, pro-growth tax cuts, and new trade agreements as long-term wins. White House spokesman Kush Desai defended the administration’s outlook, saying:
“President Trump is implementing the very same policy mix…at an even bigger scale – as these policies take effect, the best is yet to come.”
Public Support and Political Risks
Still, public approval is slipping. A July AP-NORC poll found that just 38% of Americans approve of Trump’s handling of the economy—down sharply from his first term’s peak of 50%.
With midterm elections approaching, economic anxiety could present political risks not just for Trump, but also for congressional Republicans defending their seats in newly redrawn districts.
Republican strategist Alex Conant warned, “The full inflationary impact of the tariffs won’t be felt until 2026. Unfortunately for Republicans, that’s also an election year.”
As for Trump’s critics, many—including former President Joe Biden—say they saw this coming. In a December speech, Biden warned that Trump’s push for “universal tariffs” would backfire.
“He seems determined to impose steep, universal tariffs…on the mistaken belief that foreign countries will bear the cost,” Biden said. “I believe this approach is a major mistake.”
Trump’s Clash with the Fed
Trump has intensified his long-running feud with Federal Reserve Chair Jerome Powell, calling for the Fed to slash interest rates in the face of what he describes as an overly cautious monetary policy. While Trump blames Powell for not doing enough to stimulate borrowing and spending, economists warn that rate cuts now could fuel even more inflation.
Interestingly, two Fed governors—Christopher Waller and Michelle Bowman—voted in favor of rate cuts at Wednesday’s Fed meeting, though they did so out of concern over the slowing job market, not political pressure.
The Fed’s caution is also tied to uncertainty about Trump’s ever-changing tariff strategy. Since April, Trump has revised his trade policy several times, sparking stock market volatility and investor hesitation.
The most recent tariff package targeted nations that failed to reach bilateral trade deals with the U.S., while excluding allies such as Japan, South Korea, and the EU. The real cost of those tariffs, however, will fall on American businesses and consumers, experts say.
Final Take: Cautious Optimism or Warning Signs?
For now, the Trump administration insists that the economic restructuring is still in its early stages—and that the benefits will become clearer in time. But the combination of slowing job growth, rising prices, and reduced GDP has analysts and voters alike questioning whether the president’s strategy is sustainable.
With Trump taking full ownership of the current economic climate, any future downturn will be hard to blame on his predecessor. The economy is now undeniably Trump’s economy—and its success or failure could define the political battles ahead in 2026.
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