New GDP Report Shows Astounding Growth in Trump’s Economy

Some radio and TV hosts might want to consider refraining from practicing economics live on air. Most do not understand President Trump’s tariffs, nor do they understand the basics of GDP – Gross Domestic Product, the total value of goods and services produced by a country in a year.

Some are still claiming that the economy is unstable because of Trump’s tariffs.

In March, I reported, “Critics of Trump are hysterical over his promise of reciprocal tariffs, and fundamentally disagree with his positions on the economy. They blame Trump for the price of eggs, the Russia/Ukraine war, DOGE and Elon Musk, and decry cuts to the federal government and federal employees. Much of this criticism is Trump Derangement Syndrome, but a lot of it is because of a lack of understanding of basic economics.”

“What many Americans are not aware of is that tariffs funded the American economy prior to the income tax, which meant that Americans did not have money taken from their paychecks – they kept everything they earned until they decided to spend it.”

As President Trump posted to Truth Social Thursday, “America has successfully countered this onslaught of Tariffs used against it.”

“The proposal for tariffs has raised the typical concerns from economists who argue for free-trade policies. Their views reflect traditional economic orthodoxy, not reality. In the real world, we have a one-sided free-trade policy in which America isn’t nearly as protectionist as other countries,” John Paulson explained in the Wall Street Journal.

Far too many radio and television hosts claim to be free-traders, but with the U.S. paying exceedingly higher tariffs than every other country we traded with, that was not actual free-trade taking place.

Paulson continued: “The U.S. imposes only an average 2% tariff on imported industrial goods, while many other countries have both high tariffs and nontariff trade barriers. According to the Bureau of Economic Analysis, the merchandise trade deficit has exploded under President Biden, reaching a yearly record $1.2 trillion in 2022 and hitting a July record of $103 billion in 2024.”

“This imbalance has been devastating for U.S. industry. Since the North American trade agreement (NAFTA) was passed by the Clinton Administration in 1993, millions of manufacturing jobs have been lost, a huge trade deficit emerged and American manufacturing wages declined.”

“Today, GDP growth came in above market expectations, and yesterday, consumer confidence rose,” White House Press Secretary Karoline Leavitt said Wednesday.

Here are the details:

• Consumer spending growth accelerated.
• Americans’ total real disposable income rose at a strong 3.0% in Q2 after a similarly strong 2.5% increase in the first quarter.
• Auto output rose at a 35.5% annual rate — the biggest increase since 2020 — as President Trump revitalizes the American auto industry and encourages domestic production.
• Manufacturing output has surged 1.8% in the first five months of President Trump’s second term after a -0.7% decline in the final five months before President Trump’s inauguration.
• For five straight months, core inflation has come in below market expectations and remains right in line with the Fed’s inflation target.
• In June, consumer spending and industrial production beat expectations, while jobless claims have fallen for six weeks in a row.
• Customs and tariff revenues have totaled $150+ billion in President Trump’s second term — leading to the first June budget surplus in nearly a decade.

Two of my favorite economists weighed in:

Economist E.J. Antoni: “This GDP report, I mean, really, is an absolute blockbuster. It completely defies expectation. It is not only a good headline number, it has good internals, as well.”

Economist Steve Moore: “This is an amazing number … We’re seeing lots of jobs. We’re seeing tame inflation. It is really a beautiful picture … It’s hard to see anything to complain about. I’m sure Democrats will find something they don’t like.”

Even CNN and CNBC were positive:

CNN’s Matt Egan: “GDP, the broadest measure of the U.S. economy, it did rebound in the second quarter. Three percent — that is a solid number and it also beat expectations.”

CNBC’s Joe Kernen: “This three percent, with the market at new highs and, really, we haven’t seen inflation go up … none of these ‘horrible things’ have happened.”

From Trump’s cabinet:

Secretary of the Treasury Scott Bessent: “Real GDP grew 3% in Q2, surpassing expectations. Consumer spending is up, and inflation is cooling. This is what an America First economy looks like, and the best is yet to come.”

Secretary of Commerce Howard Lutnick: “GDP just surged to 3% and the Trump Economy has officially arrived. Biden’s first quarter is behind us, and growth is already accelerating. President Trump’s tariff policies have drawn historic investments and opened up global markets for U.S. businesses. Congratulations America: 3 percent today, and we’re just getting started.”

The fact that growth is being driven by the private sector is huge in that the government is shrinking, allowing private sector businesses to thrive.

Trump’s trade deals are astounding. Batya Ungar-Sargon described the Trump economy and tariffs: “President Trump is teaching a generation of Republicans and business leaders how to build an amazing economy that will lift all boats, that will lift working-class people, as well as the stock market, and that will give the GOP a ruling majority for years and years to come; an economy based on love of country that will make America into the powerhouse of manufacturing, the superpower that it used to be.”

EJ Antoni summed it up well: “Free trade should apply first and foremost to domestic trade because we should be focused on benefiting our own citizens before we worry about those overseas. We don’t hate foreigners—we just love Americans more.”

Bonus: Here’s a free online Economics 101 course from Hillsdale College, where you will you will brush-up on the foundational principles of the free market.