How is the US economy really doing under President Trump?
Summary
The US economy is growing at a steady rate under President Donald Trump, helped by investments in artificial intelligence (AI) and eased tariffs. However, inflation has increased compared to when Trump took office, partly due to new import taxes and disruptions from the US-Israel war with Iran, affecting prices for fuel and groceries. Average household incomes are rising but face challenges from inflation and changes in government subsidies.Key Facts
- US GDP grew by about 3.2% since Trump began his second term in 2025, faster than other major economies in the G7 group.
- President Trump imposed tariffs on imports in 2025, which were later reduced, affecting investment and consumer spending.
- US businesses have nearly doubled spending on building data centers for AI between 2025 and 2026.
- Inflation in the US is currently 3.7%, higher than the 3% rate inherited in 2025 but much lower than the 9% peak in 2022 under President Biden.
- The tariffs and the war involving the US and Israel against Iran have contributed to higher inflation, especially in fuel and food prices.
- Diesel prices hit a record high of $6.52 per gallon in September 2026, raising costs for industries and agriculture.
- Median household income after inflation rose 2.6% in 2025 to a record $87,460.
- Changes like Trump's tax cuts and ending subsidies for health care have affected household finances along with inflation.
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