Key Takeaways
- President Trump dominated 2025 with a muscular approach to policy-making, but his popularity sank to historical lows by year’s end
- Trump issued 225 executive orders, many of which tested the limits of executive power, and faced over 358 lawsuits, with 149 of them partly or fully blocking his initiatives
- The Trump administration’s policies, including the One Big Beautiful Bill Act, are expected to add $3 trillion to the deficit and cause significant damage to the economy and healthcare
- The average effective tariff rate increased to 16.8%, the highest since 1935, and immigration policies led to a sharp decline in encounters at the southern border
- The economy showed signs of weakening, with rising unemployment, slowing job creation, and elevated inflation, contributing to Trump’s low approval ratings
Introduction to Trump’s Presidency
President Trump’s re-election in 2025 marked a significant turning point in American politics. With a renewed sense of purpose, Trump plunged back into office, determined to leave his mark on the country. Ignoring convention, precedent, and at times, the law, he pushed through vast changes aimed at curtailing immigration, walling off the economy, and dismantling the agenda of his predecessor and successor, Joe Biden. However, by the end of the year, Trump’s popularity had sunk to historical lows, with many Americans recoiling from his brutality and extremism. The main concern for many was the failure to improve their economic well-being.
Executive Power and Legislative Inaction
Trump chose to refashion the federal government largely by issuing executive orders at an explosive pace. On his first day in office, he signed 26 orders and went on to issue a total of 225 as of December 18, more than he did in his entire first term and nearly three times as many as any other president did in their first year in over 40 years. Some of these orders tested, and perhaps exceeded, the limits of executive power. For example, Trump decreed an end to birthright citizenship, a principle that had been adjudicated to be a constitutional right. The 119th Congress, on the other hand, was marked by inaction, passing just 61 laws, mostly prosaic ones, in its first year. The legislative body’s inability to pass significant legislation was due in part to the bitter partisan divisions that led to the longest government shutdown in U.S. history.
The System Fights Back
Trump’s predilection for pushing boundaries spurred an avalanche of litigation. To date, 358 lawsuits have been filed against the second Trump administration, 149 of which partly or fully blocked the administration’s initiatives. The courts left just over 100 in effect, and a similar number of suits are pending. Many of the suits center on Trump’s unilateral actions around immigration and deportations, as well as his refusal to spend money appropriated by Congress on programs such as scientific research and foreign aid. While the Supreme Court has yet to rule against the administration in any major way, the most important cases, from birthright citizenship to tariffs, have not been decided.
Economic Consequences
The Trump administration’s policies, including the One Big Beautiful Bill Act, are expected to add at least $3 trillion to the deficit and send the ratio of debt to gross domestic product to nearly 130 percent, from just under 100 percent at present. The law will cause significant damage, with tax provisions heavily favoring high-income and business taxpayers. As many as 10 million Americans will be forced off Medicaid, and much of the progress made under the Affordable Care Act will be undone. The package also rolls back significant green energy provisions, markedly slowing the projected fall in greenhouse gas emissions.
Trade and Immigration Policies
Trump’s "America First" philosophy has led to a substantial reversal of the country’s approach to trade and immigration. The average effective tariff rate has increased to 16.8%, the highest since 1935, and immigration policies have led to a sharp decline in encounters at the southern border. Trump has also moved to sharply curtail legal immigration, pausing all asylum applications, suspending the diversity visa program, and imposing a $100,000 fee on new H-1B visas. However, these policies have demonstrated little clear benefit to the economy, particularly in terms of employment. The unemployment rate has inched up, and job creation has slowed significantly.
Economic Sentiment and Approval Ratings
The economy has shown signs of weakening, with rising unemployment, slowing job creation, and elevated inflation. Consumer sentiment has fallen to near-record lows, with Americans feeling squeezed between modest wage increases and rising prices. Trump’s approval rating has suffered as a result, with his rating at 36% being the lowest of any president at the end of their first year in the past five decades. In addition to the economy, Trump’s approval rating has been weakest on the Middle East, Ukraine, the budget, and healthcare.
The Rise of Artificial Intelligence
While Trump dominated the news, the explosion of artificial intelligence also garnered significant attention, with adoption of the technology soaring and outrunning the advent of both the internet and mobile phones by wide margins. However, AI has quickly stirred controversy, with Americans wondering whether it will create jobs or destroy them. While there is potential for substantial disruption in the short term, no technological innovation in human history has failed to ultimately add jobs. As the country moves forward, it will be essential to consider the impact of AI on the economy and society as a whole.