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A study by the German Institute for Economic Research found that Donald Trump’s policies delivered strong growth and boosted investment activity in artificial intelligence, but did not reduce the trade deficit. The goods trade deficit reached $130 billion in August despite tariffs. The EU’s share of the deficit fell to 7%, from 20%, and China’s to 14%, from 29%. Meanwhile, inflation remained above the Federal Reserve’s 2% target, and job creation slowed compared with the previous administration. Efforts to revive manufacturing also fell short of their goals: foreign direct investment declined 8.2% to $248 billion in 2025, while public debt reached $40 trillion.
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