The US economy expanded at a 4.3% annual rate in the third quarter, beating forecasts of 3.2%. Consumer spending and exports led gains while corporate profits surged. President Trump credits tariffs for driving this private-sector boom amid ongoing trade policy debates.
President Trump at Army-Navy game
Robust Q3 GDP Report Released
The Commerce Department delivered strong numbers for July through September. Growth topped expectations after government shutdown delays. Consumer spending jumped on health care and recreation.
Exports rose at an 8.8% annualized rate. Corporate profits soared over $166 billion. This topped the prior quarter’s $6.8 billion increase by a wide margin.
Private sector activity powered most year-to-date gains. Government spending played a smaller role than in past periods. The White House emphasized this shift in a statement.
Council of Economic Advisers Reacts on X
The Council of Economic Advisers shared quick takes on social media. One post read: “Q3 GDP came in at 4.3%, blowing past expectations of 3.2%.” Another noted: “Virtually all year-to-date GDP growth is driven by the private sector in President Trump’s economy.”
Virtually all year-to-date GDP growth is driven by the private sector in President Trump’s economy, unlike in Biden’s economy, where government spending was a major driver.
— Council of Economic Advisers (@CEA47) December 23, 2025
Consumers showed faith with 3.5% spending growth. Nondurable goods like drugs saw strong demand. Net exports benefited from trade policy shifts.
Trump posted on Truth Social crediting tariffs directly. The Wall Street Journal reported his claim that duties fueled economic expansion. This ties policy moves to the headline numbers.
Tariff Rebates Move Forward
National Economic Council Director Kevin Hassett sees $2,000 rebate checks as likely. He shared this on Face the Nation Sunday. Trump plans a formal Congress pitch next year.
Hassett shifted from summer skepticism on the idea. Trump announced a $1,776 “warrior dividend” last week. Nearly 1.5 million service members qualify.
Tariff revenue uses now total nine proposals. These range from tax cut funding to direct payments. Monthly collections dipped slightly last month.
Supreme Court Challenge Builds
Hassett predicts a Supreme Court win for tariff legality. A loss could void many duties and trigger $100 billion in refunds. Administrative issues would follow such payouts.
Supreme Court to rule on Trump tariff legality, potential $100B refunds
Companies like Costco seek refunds through lawsuits. Firms sell refund rights to investors as hedges. Tariff income fell from $31.35 billion to $30.76 billion.
Some duties lifted on coffee, oranges, and cocoa. This contributed to the first monthly decline since rollout.
Chinese Chip Tariffs Set for 2027
New duties target China’s semiconductor sector. These begin June 23, 2027. The plan covers chips from Beijing.
Trump greenlit Nvidia H200 chip sales to China. He noted positive response from Xi Jinping. Trade tensions mix with selective approvals.
US firms adjust supply chains amid policy flux. Economy watchers monitor revenue and court outcomes closely.
Canada Trade Review Scheduled
Canada and the US start free trade talks mid-January. Prime Minister Mark Carney’s office confirmed the timeline. USMCA review covers key sectors next year.
Trump pushes deal reshaping across borders. Discussions avoid immediate deep dives into industries. Broader pact evaluation follows soon.
Also Read: Trump Unveils ‘Trump-Class’ Battleships: Golden Fleet Set to Sail in 2.5 Years
Inflation and Voter Views Press
The Fed’s gauge hit 2.8% for the quarter. This rose from 2.1% previously. Price gains hit consumer sentiment.
Approval for Trump’s economic handling sits at 33%. A Reuters/Ipsos poll captured this view. Recent Republican election losses tied to costs.
Jobless rates ticked up despite growth. Payrolls remain solid. Administration pivots to affordability focus now.
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