Economic policy of the second Donald Trump administration

Under the second presidency of Donald Trump, the federal government of the United States has pursued an economic policy focused on lower taxation, deregulation, and large-scale protective tariffs. Trump nominated Howard Lutnick as the United States Secretary of Commerce, Scott Bessent as the United States Secretary of the Treasury, and Russell Vought as the director of the Office of Management and Budget (OMB), all of whom were confirmed by the U.S. Senate. When Donald Trump took office as president in January 2025, the economy of the United States had increasing economic growth, low unemployment, and declining inflation in the aftermath of the 2021–2023 inflation surge.

To cut the United States's federal budget, Trump established the Department of Government Efficiency (DOGE), led by Elon Musk. DOGE employees have vastly cut spending at various federal agencies, and have attempted to dismantle nearly all of the functions of the United States Agency for International Development and the Consumer Financial Protection Bureau. Though Musk set the initial goal of US$2 trillion in savings for DOGE, he later revised it to $150 billion. By April 2025, he said DOGE had saved over $160 billion, though the costs of the mass layoffs of government employees and other methods offset much of its savings. In January 2025, the OMB briefly issued a pause to all grants and loans from the federal government.

Much of Trump's domestic economic agenda has centered around the extension of the Tax Cuts and Jobs Act of 2017, which was passed during his first presidential term. Trump has also pledged to remove taxes on tips, overtime pay, and Social Security benefits, though all of his proposals face resistance from Congress, which the tax cuts likely to increase the U.S. national debt by trillions of dollars if not offset by politically unpopular cuts to spending. Trump also imposed steep protectionist tariffs against nearly every country in an effort to correct U.S. trade deficits and promote manufacturing in the U.S., significantly escalating the China–U.S. trade war and beginning a trade war with Canada and Mexico. The reaction to Trump's tariffs, including his April 2025 decision to impose a universal 10 percent tariff on nearly all countries and higher rates on many other countries, led to a stock market crash.