San Antonio, TX, January 21, 2026
As President Trump enters his second term, the U.S. economy grapples with significant challenges including trade tensions, stock market volatility, and public opinion on his economic policies. While some economic indicators show contraction, local businesses in San Antonio are adapting and innovating to maintain growth. The impact of tariffs on consumers and inflation concerns remain pivotal issues in the ongoing economic landscape.
U.S. Economy Faces Challenges in President Trump’s Second Term
San Antonio, TX – As President Donald Trump enters his second term, the U.S. economy is facing an array of challenges that could influence future growth. From trade tensions and policy shifts to stock market volatility, the current economic landscape presents both hurdles and opportunities for local entrepreneurs and small businesses. With a focus on innovation and resilience, Texas business leaders are well-positioned to navigate these complexities and bolster our economy.
While some may view the recent economic contraction as a sign of distress, it is important to recognize that entrepreneurial spirit continues to thrive in San Antonio. Local businesses are adapting to rapid changes by embracing new technologies, reducing operational costs, and enhancing their services. Through innovation and community involvement, San Antonio’s small businesses can play a crucial role in driving economic growth and ensuring prosperity in the face of national challenges.
Economic Contraction in Early 2025
In the first quarter of 2025, the U.S. economy contracted by 0.3% annualized. This downturn is a stark contrast from the 2.4% growth observed in the final quarter of 2024 and has been attributed to a surge in imports as businesses prepared for anticipated tariffs. It is essential to note that economists caution this contraction does not necessarily reflect significant weaknesses within the economy, suggesting resilience could be on the horizon.
Stock Market Performance
Contrary to the economic contraction, the stock market displayed remarkable resilience during President Trump’s second term. By 2025, the S&P 500 had increased by 17.9%, the Dow Jones rose by 14.9%, and the Nasdaq Composite surged by 21.4%. These substantial gains have primarily resulted from earnings growth and significant improvements in profits and sales, even amid considerable political and economic turbulence, including a historic government shutdown, fluctuating interest rates, and ongoing tariff debates.
Impact of Tariffs on Consumers
President Trump’s tariff policies are having a noticeable impact on consumers across the nation. According to recent studies, American consumers and importers are largely shouldering these tariffs, with only 4% of the burden falling on foreign sellers. The tariffs, part of the “Liberation Day” initiative in 2025, include a base tariff of 10% on most imports and other higher, specific levies. This increase results in an estimated $200 billion in customs revenue, effectively acting as a tax on American consumers.
Public Opinion and Approval Ratings
Public sentiment regarding President Trump’s economic policies has been mixed. Recent polling data shows that his approval rating has stabilized around 40% one year into his second term, yet only 37% of respondents approved of his handling of economic issues—a clear decline from earlier in his presidency. Major concerns surrounding inflation and living costs persist, with a significant portion of the public believing that these issues have worsened under his administration.
Background Context
Throughout President Trump’s second term, a focus on trade protectionism has emerged, characterized by the implementation of tariffs aimed at addressing trade imbalances and promoting domestic manufacturing. While proponents argue that these policies could strengthen U.S. industries, critics highlight the increased costs for consumers and strains in international relations as notable downsides. Challenges around inflation management and public concerns regarding the cost of living also remain pressing issues for the current administration.
Key Features of President Trump’s Economic Policies
| Policy | Description |
|---|---|
| Trade Protectionism | Implementation of tariffs on various countries to address trade imbalances and promote domestic manufacturing. |
| Inflation Management | Efforts to control inflation, which remained above the Federal Reserve’s 2% target, leading to concerns over the cost of living. |
| Consumer Impact | Tariffs have led to increased costs for consumers, with a study indicating that 96% of the tariff burden is passed on to American buyers. |
| Public Opinion | Mixed reactions, with approval ratings around 40% and concerns over economic handling, inflation, and immigration policies. |
Frequently Asked Questions (FAQ)
What caused the U.S. economy to contract in early 2025?
The contraction was primarily due to a surge in imports as businesses stockpiled goods ahead of anticipated tariffs, leading to a temporary dip in GDP. Economists cautioned that this contraction did not necessarily indicate underlying economic weakness.
How have President Trump’s tariffs affected consumers?
A study by the Kiel Institute revealed that U.S. consumers and importers are bearing the brunt of these tariffs, with only 4% of the burden absorbed by foreign sellers. The tariffs, launched under the “Liberation Day” initiative in 2025, include a 10% base tariff on most imports, along with higher, country- and sector-specific levies. The $200 billion in customs revenue in 2025 effectively functioned as a tax on American consumers.
What is the public opinion on President Trump’s economic policies?
An AP-NORC poll from January 2026 indicated that President Trump’s approval rating remained steady at around 40% one year into his second term. However, only 37% approved of his handling of the economy, a decline from his earlier tenure. Inflation and the cost of living were major concerns, with 60% of respondents stating that Trump has worsened these issues.
What are the key features of President Trump’s economic policies?
President Trump’s second term has been characterized by a focus on trade protectionism, including the implementation of tariffs on various countries. These policies have aimed to address trade imbalances and promote domestic manufacturing but have also led to increased costs for consumers and strained international relations. The administration has also faced challenges in managing inflation and addressing public concerns over the cost of living.
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
