The economic landscape has seen significant transformation during the first year of Donald Trump’s second term, which began in 2025. As the former president resumes his position, he has initiated a series of economic strategies aimed at reshaping trade, immigration, and federal employment.
Elizabeth Renter, a senior economist at NerdWallet, noted the pervasive uncertainty stemming from potential or actual policy shifts that have impacted consumers, job seekers, and small to midsize enterprises. Renter emphasized the difficulty in gauging the economy’s trajectory amidst ongoing adjustments and shifting economic indicators.
A retrospective analysis of the economy under Trump reveals notable trends: a substantial increase in tariff rates, a noticeable exodus of federal workers, continued consumer spending, and a deceleration in hiring.
Looking ahead, Jason Draho, head of asset allocation Americas for UBS Global Wealth Management, commented on the possibility of a slowdown in the rate of change in the coming year. He suggested that many of the policies expected to exert a significant influence on the economy have already been introduced or announced, particularly tariff reforms and tax cuts associated with the One Big Beautiful Bill.
Draho further explained that the announcements made in 2026, including a proposed cap on credit card interest rates and plans for Fannie Mae and Freddie Mac to engage with mortgage-backed securities, are adjustments with limited macroeconomic implications.
A White House spokesperson, Kush Desai, highlighted Trump’s commitment to reverse what he termed Joe Biden’s economic challenges, citing accomplishments in GDP growth, private-sector job creation, the establishment of over a dozen new trade agreements, historic drug pricing initiatives, and a reduction in inflation.
The robust changes implemented throughout 2025 set the groundwork for ongoing economic strategies moving forward, showcasing the administration’s aim to restore economic confidence and growth amid previous challenges.