More than six months into his return to the Oval Office, President Donald Trump’s promised economic “golden age” is facing mounting skepticism as key indicators point to a slowing U.S. economy, rising inflation, and dwindling job creation raising concerns over the long-term impact of his aggressive policy shifts.
After reshaping America’s trade, tax, energy, and manufacturing frameworks through sweeping executive orders, a landmark spending bill, and a wave of tariff hikes, Trump is now grappling with what critics describe as a stalling recovery. While the White House paints a picture of imminent resurgence, a string of discouraging economic reports released this week suggests a more sobering reality.
Job Losses and Tepid Growth Signal Headwinds
Friday’s jobs report revealed a stark decline in hiring momentum. The U.S. economy added just 73,000 jobs in July, continuing a downward trend from 14,000 in June and 19,000 in May a total of 258,000 fewer jobs than initially estimated. Particularly alarming is the loss of 37,000 manufacturing jobs since Trump’s tariffs took effect in April, undermining his claims of a factory sector revival.
Simultaneously, GDP growth for the first half of 2025 slowed to 1.3%, down from 2.8% last year. Inflation, as measured by the Personal Consumption Expenditures Price Index, rose to 2.6% year-on-year, driven by spikes in the cost of imported goods such as appliances, furniture, and children’s toys.
“This just looks like a ‘meh’ economy continuing,” said Guy Berger, senior fellow at the Burning Glass Institute, adding that job creation and growth remain stagnant even as the unemployment rate stays low.
Trump Fires Jobs Data Chief, Blames Deep State
Despite the grim statistics, Trump fired the head of the federal agency responsible for the monthly jobs report, accusing it of political manipulation. “Important numbers like this must be fair and accurate,” Trump wrote on Truth Social, asserting without evidence that the economy is “BOOMING.”
Trump has also renewed his public attacks on Federal Reserve Chair Jerome Powell, urging interest rate cuts to stimulate borrowing and investment a risky move that economists warn could fuel further inflation.
While Trump backs rate-slashing Fed governors Christopher Waller and Michelle Bowman, both officials cited a cooling job market as justification, not political loyalty.
Political Gamble: Tariffs, Tax Cuts, and Middle-Class Promises
Trump’s tariffs, heralded as a move toward “fair trade,” are now widely seen as contributing to rising consumer prices. Though the White House secured limited trade concessions from the EU, Japan, South Korea, and others, analysts warn that the broader tariff strategy could backfire, especially with midterm elections approaching.
“The full inflationary impact of the tariffs won’t be felt until 2026,” noted Alex Conant, Republican strategist at Firehouse Strategies. “Unfortunately for Republicans, that’s also an election year.”
The president’s revised tax-and-spending law also faces scrutiny. While Trump promises that deregulation and tax cuts will unleash growth, public approval remains tepid. A July poll by the AP-NORC Center shows that only 38% of Americans approve of Trump’s economic leadership down from 50% at the end of his previous term.
Still, White House spokesperson Kush Desai insisted that the best is yet to come: “President Trump is implementing the very same policy mix at an even bigger scale and these policies will deliver results.”
Biden’s Warning Echoes
Former President Joe Biden, in a December 2024 speech at the Brookings Institution, had warned against exactly this outcome.
“He seems determined to impose steep, universal tariffs on all imported goods… on the mistaken belief that foreign countries will bear the cost,” Biden said. “I believe this approach is a major mistake.”
Now, with consumer prices rising and economic momentum flagging, those warnings appear prescient.
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