U.S. Economy Surges 4.3% in Q3 as Trump Touts Tariff Policies
Stronger-than-expected GDP growth boosts markets, but economists caution the recovery remains uneven.
The United States recorded strong economic growth in the third quarter of 2025, with GDP rising to 4.3%. President Donald Trump was quick to hail the figures as evidence that his policies are delivering results.
Analysts had expected a slowdown in economic activity, forecasting that GDP growth would decline from 3.8% in the previous quarter to around 3.2%, according to MarketWatch and Trading Economics.
Consumer Spending and Tariffs Drive Q3 GDP Surge
The reported growth rate represents an increase of 1.1 percentage points compared with the second quarter. Key drivers included accelerating consumer spending, higher exports, and increased government expenditures, while investment experienced a slight decline during the same period.
The release of the preliminary estimates was delayed by nearly two months due to the federal government shutdown, which lasted from October 1 to November 12 and disrupted the work of statistical agencies.
Reacting on his social media platform Truth Social, Trump described the results as evidence that “Trump’s golden economic age has launched at full speed,” referring to himself in the third person. He added, “Economists were wrong, but Trump and a few other geniuses were right.”
In another post, Trump attributed these “great economic numbers” to the tariffs imposed since his return to office—measures that have caused significant disruption to global trade and created challenges for parts of the industrial sector. He also repeated his oft-stated claim that “there is no inflation.”
Tax Cuts and AI Investment Shape Volatile U.S. GDP Growth
Despite polling that shows growing voter dissatisfaction over rising living costs, the administration insists that taxpayers will benefit from additional tax cuts next year. However, Pantheon Macroeconomics assessed that the impact of these tax cuts on growth in 2026 would be “moderate.”
Sam Stovall, chief investment strategist at CFRA, told Agence France-Presse that “this strong GDP growth gives the Federal Reserve another reason to maintain the status quo at its next meeting.”
Financial markets had been hoping the Federal Reserve would cut interest rates on January 28 to support growth and corporate profits.
GDP growth has been volatile this year. The economy unexpectedly contracted by 0.6% at the beginning of the year due to a sharp rise in imports ahead of Trump’s tariff measures. In contrast, the second quarter saw a rebound as imports declined while consumer spending remained steady.
Several economists have warned that the current growth lacks balance, as it relies heavily on investment in artificial intelligence and data center construction, while traditional sectors continue to struggle.
