In the first two months of his presidency, Donald Trump has imposed tariffs on Canada, Mexico, and China, signaling a shift in U.S. trade policy. Despite these efforts, the Canadian and Mexican tariffs have been met with a lengthy list of exemptions. Meanwhile, the administration is preparing to implement broader tariffs in April. Economic indicators present a mixed picture, with job growth falling short of expectations and consumer confidence on the decline.
The economy added 151,000 jobs in February, which was below the economists' projection of 170,000. The unemployment rate ticked up slightly to 4.1% from 4.0%, indicating a potential cooling of the labor market. Inflation remains above the Federal Reserve's target of 2%, adding another layer of complexity to the economic outlook.
Consumer surveys have revealed a dip in confidence, which could be attributed to the administration's trade policies and their impact on international relations and domestic markets. Treasury Secretary Scott Bessent acknowledged signs of weakness in the U.S. economy but noted that the administration is "not getting much credit" for areas where costs have decreased since Trump's inauguration, such as oil prices and mortgage rates.
The administration is taking steps to reshape global trade policies and reduce the federal workforce, aiming to transition the economy from public spending to private investment. This natural adjustment is part of a broader strategy to stimulate economic growth through reduced government intervention.
Despite these efforts, signs of a slowdown appeared in late 2024, with economic growth not as robust as under the previous administration. The U.S. economy has not yet seen substantial economic data reflecting President Trump's term, leaving some uncertainty about the long-term effects of his policies.