Year in Review: The Evolution of President Trump’s Economic Agenda So Far

President that of Donald Trump The economic program has produced a mixed but closely watched set of results so far. Economic growth has accelerated, inflation has eased from recent highs, and major policy changes have begun to reshape the outlook for businesses and households.

US stocks rebound

Not to mention a good year for U.S. stocks, with the S&P 500, the broadest measure of the stock market, ending 2025 with a 17% gain.

Here’s a look at the key developments that have defined Trump’s economy to date.

Strong growth, slowing inflation

The economy grew faster than expected in late 2025, with overall output increasing at an annual rate of about 4% to 4.5% in the third quarter. Trump administration officials say the growth is because Americans are spending more money and businesses feel confident enough to invest and hire.

CONSERVATIVE STATES SEE LOWER INFLATION THAN LIBERALS NATIONWIDE, WHITE HOUSE DATA SHOWS

At the same time, inflation, the rate at which prices rise, has slowed.

Prices rose 2.7% in November from a year earlier, less than the 3.1% estimated by economists.

Together, these trends could shape how Trump and the Federal Reserve approach interest rates and the economy as a whole in the coming months. Market observers predict the first Fed rate cut will come in April 2026, according to the CME FedWatch toolwhich tracks the probability of rate movements.

Trump’s One Big Beautiful Bill Act

Law enacted on July 4, Trump’s flagship law Act on a big and beautiful bill (OBBBA) is a sweeping tax and spending measure that builds on the Tax Cuts and Jobs Act (TCJA) of 2017 from his first term while launching new federal initiatives.

FIVE MAJOR POLICIES TO KNOW FROM THE ONE BIG BEAUTIFUL BILL ACT

The legislation extends the expiring TCJA tax cuts, preventing a broad-based tax increase for individuals and permanently reducing revenues. tax rate and an expanded standard deduction. Other provisions are temporarily extended, reshaping the tax landscape for households and businesses.

The bill also paves the way for campaign promises such as “No tax on tips” and “No tax on overtime” to take effect in 2026, while introducing new long-term savings programs.

THE IRS DOES NOT PUT ANY TAX ON TIPS

Big tax refunds

Trump’s economic team is asking Americans to prepare for some of the largest tax refunds in history, thanks to OBBBA’s provisions.

“I can see we’re going to have a gigantic refund year in the first quarter, because American workers haven’t changed their withholdings,” US Treasury Secretary Scott Bessent ” told the “All-In Podcast” hosts. “I think households could get, depending on the number of workers, reimbursements of $1,000 to $2,000.”

Bessent’s prediction echoes that of Tax Foundationa non-partisan tax policy nonprofit organization. The group said in a Dec. 17 report that “refunds will be larger than usual during the upcoming tax filing season due to the One Big Beautiful Bill Act (OBBBA) tax cuts for 2025.”

Trump accounts

For children, the accounts function much like traditional long-term investment vehicles, but with rules specifically designed to protect children. young savers. Available only to those under 18, they are funded by federal start-up funds, private contributions from families and, where applicable, additional deposits from employers or nonprofit organizations.

Individuals can contribute up to $5,000 per year to a Trump account. Governments and nonprofit organizations can also make eligible contributions. Additionally, funds from another Trump account can be transferred, meaning that money already held in a Trump account can be transferred directly to a new or another Trump account without being counted against the annual contribution limit.

Employers participating in a Trump account program can contribute up to $2,500 per year.

In December, two high-profile billionaires joined funding Trump accounts. Michael and Susan Dell were the first to commit more than $6 billion. Later, investor Ray Dalio joined the cause.

Launch of “Liberation Day” prices

In April, Trump announced drastic “Liberation Day” tariffs aimed at reducing long-standing trade imbalances, boosting U.S. manufacturing and strengthening national security. Critics have countered that higher tariffs could raise consumer prices and provoke retaliation from trading partners.

TRUMP SAYS TARIFF REVENUE TO FUND $2,000 CHECKS FOR AMERICANS AND LOWER NATION’S $38 TRILLION DEBT

Despite this, total revenue from customs duties reached $215.2 billion in fiscal year 2025, which ended Sept. 30, according to the Treasury Department’s report on customs and certain excise taxes. This momentum has continued into the new fiscal year, with $96.5 billion raised since October 1. Treasury data shows.

The strategy now faces a legal challenge, the Supreme Court is expected to rule in January on Trump’s authority to impose certain tariffs.

The cases — Learning Resources Inc. v. Trump and Trump v. VOS Selections Inc. — brought by an educational toy maker and a family-owned wine and spirits importer, focuses on whether International Emergency Economic Powers Act grants the president this power or exceeds constitutional limits.

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The president maintains, however, that aggressive tariffs are necessary to address what he sees as years of unfair global trade, a stance that shows how commercial policy is integrated into its broader economic strategy.

Trump also promised that tax revenue could fund a $2,000 dividend for low- and middle-income Americans.