Trump’s most dramatic economic policy shift has been toward trade protectionism. The president increased tariffs in 2025 to the highest in almost a century, even though the administration reversed some of its earlier hikes, notably on China.

A robust GDP print, profit growth, and 2026 policy tailwinds show why the U.S. economy may stay resilient despite labor‑market weakness and lingering recession worries.

The United Nations’ flagship World Economic Situation and Prospects report, released on Wednesday, also highlighted how massive investment in the US AI sector has surged in recent years. Investment in AI rose from $87 billion in 2022 to $93.1 billion in 2023 before jumping to $150.6 billion in 2024.

The economy in 2025 was filled with contradictions, as growth was healthy while hiring slowed, inflation stayed elevated and unemployment rose.

The kitchen sink was thrown at the economy in 2025 — punishing tariffs, higher inflation, rising unemployment — but the U.S. might still be growing at an above-average speed in a sign of surprising pluck.

Polling shows a majority of Americans give Trump negative ratings on his handling of the economy and inflation.

After two straight quarters of strong growth, US economic output is on track to downshift in the upcoming report on 2025’s fourth quarter.

From stubbornly high living costs to a softer labor market, economists say these are the forces that will shape the year ahead.

A version of this story appeared in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here. The stock market keeps breaking records, but angst about the economy keeps befuddling politicians. The wealthy are getting wealthier, but ...