Trump promised an economic revival. In his first 100 days, he's falling short.

In his previous election campaign, President Trump frequently criticized former President Joe Biden’s approach to managing the economy, promising to enhance economic expansion and improve conditions. lower inflation However, after 100 days into his second term at the White House, the president is finding it difficult to fulfill those commitments.

Mr. Trump's key policies regarding trade, immigration, and government expenditure have not just fallen short of boosting economic growth—they are actually leading to a significant decrease in activity and pose a risk of reigniting inflation, according to data. Economists furthermore point out that these measures alert about the likelihood of an economic downturn in the U.S. are rising.

For numerous businesses across the nation, the Trump administration's haphazard method of levying tariffs on major trade allies as well as virtually every other country worldwide has been quite disruptive. has been challenging , high-level corporate leaders and entrepreneurs of small businesses have told CBS News .

"I can't think of a precedent for anything like this," Nancy Vanden Houten, lead U.S. economist at investment advisory firm Oxford Economics, told CBS MoneyWatch of the impact of Mr. Trump's first 100 days on the economy.

"President Reagan, for instance, implemented a lot of changes in terms of tax policy and defense spending and cuts, and those things had big impacts," she added, "but the element here that's quite different is the approach, which has been quite inconsistent and chaotic."

Although Mr. Trump’s dedicated followers remain supportive, many other voters increasingly feel that his administration is overly preoccupied with tariffs and doesn't put enough emphasis on reducing prices, as stated CBS News polling regarding the president's initial 100 days in their term.

These worries arise as the White House diverges sharply from the nation's usual approach to international trade. Critics argue this has led to tariffs not seen in over a hundred years, resulting in abrupt and unclear policies. shifts in tariff policy And significant harm to America’s international political alliances.

Former Senator Phil Gramm, a Republican and previous economics professor at Texas A&M University, stated to CBS MoneyWatch, “Tariffs have unequivocally proven disastrous from an economic standpoint.” He added, “It’s clear that the tariff policy alone leads to increased costs since tariffs function as a form of taxation. Keep in mind that out of all imported items, 61 percent consist of components utilized for producing goods and services within our country.”

Gramm emphasized, "It's important to highlight that the damage caused by tariffs extends beyond inflation; they also affect efficiency and economic growth."

The Trump administration remains supportive of its current economic achievements, as White House spokesperson Kush Davey stated in an assertion to CBS MoneyWatch, indicating that “President Trump’s America First strategies are providing essential financial assistance to ordinary Americans and establishing the foundation for enduring progress toward restoring American greatness.”

In just 100 days after President Trump began his second term, the March inflation report showed the first monthly decrease in prices for several years. Additionally, major corporations like Apple, Hyundai, and Nvidia announced multi-trillion-dollar investments aimed at bringing production facilities back to the U.S.," noted Desai. "During his initial term, President Trump fostered an unprecedented economic boom, and now he’s working to duplicate those achievements during his second term.

Economic slowdown

Currently, the U.S. economy is displaying indications of deceleration. Business surveys from April indicate that the country is likely to experience "sluggish economic growth," as stated by Pantheon Macroeconomics. This situation has led to what they describe as an "existential crisis" for companies, largely due to Mr. Trump’s imposition of tariffs.

According to analysts surveyed by FactSet, a financial services company, the nation’s gross domestic product—the cumulative yearly worth of all products and services generated within the U.S.—is expected to decelerate to an estimated rate of 0.8% during the initial quarter of 2025. This represents a significant decrease compared with the 2.4% recorded in the final quarter of the previous year. Furthermore, for the entire year of 2025, economic expansion is anticipated to ease down to about 1.9%, as opposed to the projected 2.8% increase seen in 2024, based on FactSet figures.

Economists caution that the U.S. might fall into a recession because of the effects of Mr. Trump’s tariffs. Before Mr. Trump took office on January 20, most economists were more optimistic. The U.S. economy has received a favorable rating. , highlighting its robust expansion, minimal joblessness, and advancements in stabilizing prices.

Large and small businesses alike claim that the tariffs will lead to significant disruptions. In just the past thirty days, nearly 900 firms have referenced these series of new U.S. taxes during their earnings discussions. This figure contrasts sharply with only 100 instances noted back in December 2024, as documented in transcripts provided by FactSet. Recently, the heads of Walmart and Target expressed similar concerns. privately warned Mr. Trump the tariffs might disturb supply chains and result in bare shelves within just a few weeks.

Many companies intend to transfer these expenses to customers, leading to higher prices, consequently resulting in reduced consumer spending," noted Vanden Houten from Oxford Economics. She added that her organization does not anticipate a recession; however, they have adjusted their GDP expectations downward. This means lower income for businesses.

Inflation fears flare

Mr. Trump ran his campaign with a promise to put an end to the "inflation crisis," asserting that he would would bring down prices "in a brief moment" in another term.

But 100 days into his new administration, consumers are skeptical about Mr. Trump's vow to tackle inflation, with 63% telling CBS News in new polling that they believed his policies would cause grocery prices to go up. Only 15% said they believe his administration will help lower their grocery bills.

Clearly, consumers are concerned about tariffs; a CBS News survey revealed that 55% of participants believe Mr. Trump lacks a coherent strategy regarding tariffs and trade. As a result, Americans anticipate an increase in inflation to reach 6.5% annually. according towards the University of Michigan's widely monitored consumer sentiment index — a possibly cyclical perspective that might lead consumers to reduce their expenditures.

However, so far, the inflation figures indicate that prices continue to rise. eased to 2.4% In March, this dropped from 2.8% in February. The decline in gasoline prices has been welcomed by drivers, as the current nationwide average price for a gallon of regular gas stands at $3.17, which is lower than last year’s figure of $3.66, reports indicate. AAA .

Nevertheless, numerous economists predict that inflation may rise towards the end of this year as the effects of tariffs filter through the economy.

The case for tariffs

President Trump asserts that his tariff strategies will ultimately be advantageous to the U.S. economy. He believes these tariffs will encourage domestic and international companies to invest more within the country, thereby generating employment opportunities for Americans and rejuvenating the nation’s industrial production capabilities.

Since President Donald Trump took office, certain companies have stated they are investing in domestic manufacturing , where Apple is planning a $500 billion expansion over four years, with IBM announcing on Monday. $150 billion investment to "fuel the economy."

The president additionally asserts that tariffs will generate trillions in additional federal income , which aims to extend his 2017 tax cuts currently under negotiation among Republican legislators. However, numerous economists remain doubtful that his tariffs would generate as much revenue as President Trump asserts, since consumers might cut back on purchasing imported items. when their prices rise .

"Confidence among consumers needs to increase for them to influence their spending habits," observed Donald Boudreaux, an economics professor at George Mason University (who co-authored a forthcoming book with Senator Gramm titled "The Triumph of Economic Freedom: Debunking the Seven Great Myths of American Capitalism"). He further stated that “the present policies are diminishing this sense of security.”

On his end, Mr. Trump admitted that the effect of American tariffs will bring about "some discomfort" for citizens, while he also stated in a February social media update that "THE ULTIMATE OUTCOME WILL JUSTIFY THE NECESSARY COSTS."

Market turmoil

The response from Wall Street regarding the Trump administration’s economic strategies has been evident: Since hitting a peak after the inauguration on February 19, the S&P 500 index has dropped by 10%, pushing this wide-ranging market indicator into correction territory.

Since President Trump took office, the dollar has depreciated roughly 9%, as measured by the U.S. dollar index that assesses the currency’s strength relative to several international monetary units. Usually, during periods of economic doubt, capital flows into bonds; however, over the last few weeks, this trend hasn’t been observed. bond prices have slid And as yields have increased, it indicates that investors are showing concern over the effects of the policies implemented by the Trump administration.

I want to highlight that this shift in the asset market is quite extraordinary, occurring mainly post-April 2nd, which was referred to as 'Liberation Day.'" Mr. Trump announced tariffs On nearly every country around the world, Boudreaux stated. "This situation can solely be attributed to global investors' anxieties regarding potential developments in the U.S. economy."

He remarked, "It's too early to determine how extensive these concerns might become, yet the initial indications aren’t encouraging."

A lift from reduced taxes and decreased regulation?

Certainly, rising concerns among consumers, companies, and investors do not alone signal an unavoidable economic decline. Currently, the economy still shows resilience, boasting unemployment close to a 50-year low point and keeping inflation in check. edging down to 2.4% in March.

Several economists likewise highlight potential benefits from President Trump’s plans, including possibilities for reduced taxes and decreased regulations, factors that might boost economic expansion. Additionally, President Trump emphasizes his administration’s strides toward cutting federal expenditures under the leadership of Elon Musk’s Department of Government Efficiency, positioning this move as advantageous for taxpayers.

"Hundreds of billions of dollars were wasted due to misconduct and deceit," Mr. Trump stated. told In an interview with Time Magazine earlier this month.

According to its own figures, DOGE has reduced expenses by approximately $160 billion, which equates to around 2.4% of the federal government's total yearly expenditures of roughly $6.8 trillion. However, certain skeptics argue that these reductions could lead to potential issues. ultimately cost taxpayers Due to the reinstatement of federal employees who were wrongfully terminated, decreased efficiency among the current workforce, and reduced tax revenues collected by the IRS as it downsizes following instructions from DOGE, there is a decline in revenue.

Meanwhile, certain commentators argue that the primary obstacle to Mr. Trump's economic objectives stems from decisions he himself made.

Senator Gramm stated, 'We wish President Trump success—however, when we criticize this trade policy, our concern lies with the policy itself.' He further added, 'In my view, achieving what’s best for America won’t be possible without adjustments to the current trade strategy.'