Trump's Economy Headed for a Crash: Warning Signs Multiply [Image Source: AP]
US President Donald Trump built his campaign and return to office on a bold promise — to bring back an economic “golden age.” Six months into his term, the numbers are telling a different story. Growth is slowing, inflation is ticking up, and job gains have sharply declined. Trump maintains that the economy is prospering despite these obvious signs.
Without providing any proof, he even dismissed the head of the organization that disseminated the most recent employment figures, accusing it of political manipulation. His supporters argue that this is merely a stage of economic restructuring, but the evidence suggests more serious problems that are beginning to influence politics.
Trump’s aggressive use of tariffs was supposed to revive American manufacturing and create jobs. Instead, manufacturing has lost 37,000 jobs since April. He raised import taxes on countries that did not strike bilateral deals with the US, hoping to pressure foreign governments and protect domestic industries.
However, the heat is now being felt by American customers. The cost of imported toys, furniture, and appliances has increased. Inflation increased from 2.2% in April to 2.6% in June. Businesses are still in the dark, and households are paying more since there is no obvious end in sight to the trade disruption.
The jobs report released Friday paints a worrying picture. In July, the US added only 73,000 jobs — a sharp drop from past averages. June saw just 14,000 jobs & May only 19,000. Together, these figures are 258,000 jobs lower than earlier estimates. While unemployment has not yet surged, the pace of hiring has slowed to a crawl.
The GDP numbers back this trend. In the first half of 2025, the economy grew at just 1.3%, compared to 2.8% last year. Experts now say the US economy is stuck in “slog mode” — not shrinking, but barely moving forward.
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Trump has started blaming the Federal Reserve and its chair, Jerome Powell, for the sluggish economy. He wants lower interest rates, claiming they will boost homebuying. But Fed governors voting for rate cuts did so out of concern about a weakening job market, not to please the President.
Cutting rates now could trigger more inflation. Yet, Trump is pushing the Fed hard, using economic pressure points to demand results, even if it increases long-term risk.
Just 38% of Americans now approve of Trump’s economic management, according to a July AP-NORC poll. That’s a steep drop from the end of his first term, when 50% backed his economic leadership.
White House officials argue that deregulation, tax cuts, and trade reforms will soon deliver better results. But with midterm elections on the horizon, political allies worry that worsening conditions could cost them votes.
Trump had been warned, but before leaving office, then-President Joe Biden warned that steep, universal tariffs would backfire. In a speech at Brookings, Biden predicted the costs would fall on American workers and consumers.
His words are now proving accurate. Trump ignored that advice, believing other nations would absorb the tariff burden. The result, US families now face the very price hikes and economic drag Biden foresaw.
Trump still insists this is a transition period and prosperity is around the corner. But with tariffs reshaping global trade, inflation rising, and growth fading, the outlook is uncertain. This is now his economy — and the public, the Fed, and even his political allies are watching closely.
