During his second term campaign, President Trump vowed to reignite economic growth and curb high inflation. However, 100 days into his presidency, the results are lagging, according to economic data and industry feedback provided by CBS News. Key policies on trade, immigration, and government spending have encountered significant challenges, contributing to an economic slowdown and increased risks of a recession. One of the most contentious issues is Mr. Trump's aggressive tariff strategy. The administration has imposed tariffs on various trading partners, leading to the highest tariff rates in more than a century. This helter-skelter approach has created confusion and instability for businesses and consumers alike. According to Nancy Vanden Houten, lead U.S. economist at Oxford Economics, "President Reagan implemented significant changes in tax policy and defense spending, but the inconsistency and chaos in the Trump administration's approach are unprecedented." The economic impact of these tariffs is evident. Gross Domestic Product (GDP) growth is projected to slow to 0.8% in the first quarter of 2025, down from 2.4% in the fourth quarter of 2024. For the year, economic growth is forecast to decelerate to 1.9%, compared to 2.8% in 2024. Businesses, including large corporations like Walmart and Target, have expressed concerns about supply chain disruptions and potential empty shelves due to the tariffs. Almost 900 companies have cited the new tariffs in their earnings calls, a significant jump from just 100 mentions in December 2024, according to FactSet data. Consumer sentiment is also negatively affected. In a CBS News poll, 63% of respondents believe that Mr. Trump’s policies will increase grocery prices, while only 15% expect them to decrease. Additionally, 55% of Americans feel that the president lacks a clear plan for tariffs and trade. These sentiments are reflected in the University of Michigan’s consumer sentiment index, where Americans now anticipate a 6.5% annual inflation rate, potentially leading to reduced consumer spending. Despite these negative indicators, there are some short-term positives. In March, the inflation rate dipped to 2.4%, down from 2.8% in February, aided by falling gas prices. The national average for a gallon of regular gas is now $3.17, compared to $3.66 a year earlier, according to AAA. However, economists caution that these gains are likely temporary and that higher tariffs will push inflation up in the coming months. Mr. Trump argues that his tariff policies will eventually benefit the U.S. economy by encouraging domestic manufacturing and job creation. Companies like Apple and IBM have announced substantial investments in U.S. facilities, with Apple planning a $500 billion expansion and IBM committing $150 billion. The president also claims that tariffs will generate trillions in federal revenue, offsetting the cost of extending his 2017 tax cuts. However, many economists are skeptical, noting that higher prices on imported goods will likely reduce consumer spending and negate the anticipated benefits. Financial markets have not been immune to the tariff turmoil. The S&P 500 index has dropped 10% since its post-inauguration peak on February 19, entering correction territory. The U.S. dollar has depreciated by about 9% since January 20, according to the U.S. dollar index. Bond prices have fallen, and yields have risen, indicating investor uncertainty and fear. Another key aspect of Mr. Trump’s economic agenda is the Department of Government Efficiency (DOGE), led by tech entrepreneur Elon Musk. DOGE has reportedly cut $160 billion in government spending, or about 2.4% of the federal budget. However, critics argue that these cuts may end up costing taxpayers more in the long run due to rehiring of mistakenly fired federal workers, decreased productivity, and lower tax collections from a downsized IRS. Despite the challenges, some economists still see potential benefits in Mr. Trump’s broader economic policies, such as tax cuts and deregulation. However, they agree that the trade policy remains a critical hurdle. Former Senator Phil Gramm, a Republican and economics professor, stated, "I don’t believe the president can achieve what he wants to achieve for America unless his trade policy changes." The first 100 days of President Trump’s second term have been marked by economic uncertainty and policy shifts that have raised concerns among experts. While some short-term gains are visible, the long-term implications of his tariff-heavy approach are cause for significant concern. Economists warn that sustained implementation of these policies could exacerbate inflation, reduce economic growth, and heighten the risk of a recession. The success of Mr. Trump’s economic revival plans may ultimately hinge on his ability to navigate these complex issues and adjust his trade strategies. Industry insiders and economists are closely monitoring the situation, emphasizing that the current economic trajectory is unsustainable. They believe that a more balanced and consistent approach to trade and economic policies is essential for fostering sustainable growth and maintaining consumer and business confidence. Oxford Economics, known for its comprehensive economic analyses, has already downgraded its GDP outlook, highlighting the need for policy reassessment.