In April, President Donald Trump fulfilled a campaign promise by implementing tariffs on many US trading partners. Consequently, left-leaning commentators expressed their anxiety, predicting a downturn in the economy, increased inflation, and significant job losses.
One of the more vocal critics has been Brian Schatz, a Democratic senator from Hawaii. He claimed, “Donald Trump is intentionally ruining the economy… I regret that he’s raising prices on essentials like groceries, cars, and homes, which could lead to job losses for many.” However, while Schatz may be a prominent liberal voice, his predictions seem misplaced; the US economy appears to be thriving without any slowdown in sight.
A Chinese Trade Consultation Secretary even remarked that we’re in a “super place.” In fact, the US added approximately 140,000 jobs in May 2025, surpassing expectations and maintaining an unemployment rate of 4.2%. Since the start of Trump’s second term in February 2025, over 515,000 jobs have been created, despite a reduction in the federal workforce.
Inflation also remains under control. As reported, the Consumer Price Index (CPI) recorded 2.4% for the year ending in May 2025, a slight rise from April’s 2.3%. Core inflation, meanwhile, has remained steady at 2.8% for three consecutive months, growing at the slowest rate since a surge in spring 2021.
Trump’s supporters might be concerned about the national debt, but many still support his economic direction. The inflation rate has moderated, aided by decreases in airfares, vehicle prices, clothing, and energy costs.
Rising job opportunities and low inflation have positively impacted consumer confidence, which jumped 12.3 points to 98 in May. This marked the largest monthly increase since March 2021. Not just consumers but also small and medium-sized businesses are expressing increased confidence. The National Federation of Independent Business reported a three-point rise in the SME Optimism Index in June, marking progress since December 2024.
Furthermore, consumer debt is finally on the decline. After reaching a historic peak in late 2024, credit card balances have notably reduced, with a reported $1.18 trillion in the first quarter of 2025.
This drop in credit card debt might also correlate with lower gas prices. As of June 10, the average gas price in the US was reported to have decreased significantly from $3.445 a year ago, with prices dipping below $3 in 29 states, according to Nerdwallet.
Despite some dissenting voices, the broader economic picture looks encouraging. Job growth continues, and inflation under Trump is reportedly lower than during Joe Biden’s presidency. Consumer and small business confidence is rising, alongside an ability to pay off debts.
As a follow-up to the recent US-China trade agreement announced on June 11, there’s anticipation for sustained investments and job creation in the US.
Overall, the US economy appears strong and resilient, expected to continue thriving as long as Trump’s economic strategies are in place.
