Trump Promised to Run the Economy Hotter. His Shock and Awe May Have a Chilling Effect

The fast and furious pace of Trump 2.0 is causing economists on Wall Street, who spent months modeling the potential effects of Donald Trump’s policies, to start reevaluating their impact on the US economy, with some warning that the risks to growth are front-loaded and any rewards may not be visible until next year at the earliest.

Trump took office last month promising to oversee an acceleration in the US economy. He kicked off his second term with frenetic actions, imposing 25% duties on most shipments from Mexico and Canada (which he later suspended) and layering an additional 10% tariff on Chinese imports on top of those he applied in his first administration. Undocumented migrants are being rounded up, and Elon Musk’s US DOGE Service has been unleashed on the federal bureaucracy. On Sunday, he unveiled plans to impose 25% duties on imports of steel and aluminum from all countries and signaled that there is more to come.