Trump sparked growth but widened trade deficit, slowed hiring

President Donald Trump’s sweeping tariffs and efforts to boost foreign direct investment have fallen short of their objectives, per the German Economic Institute.

With the approach of a bitter, highly partisan midterm election on Tuesday, the IW report provides an external assessment of whether Trump has made good on the promises he made in 2024 to secure a second term.

Although Trump’s policies helped generate 3.4% GDP growth during the third quarter, he has fallen short on a pledge to curb inflation and improve other aspects of economic well-being, according to the IW, which is based in Cologne, Germany.

“Trump promised to lower the cost of living, to reduce the U.S. goods trade deficit, support business by lowering taxes and to rebuild the U.S. manufacturing base with the help of foreign direct investment,” the institute said.

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