How Will Trump Impact the Economy?
Multiple analyses of Trump's economic plans project that his presidency is likely to reignite inflation.

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Updated on March 27
20k workers cut from Health and Human Services
On Thursday, the Trump administration announced that 10,000 workers in the Health and Human Services Department (HHS) would be laid off. Another 10,000 employees have opted for buyouts and early retirements, which brings the total job cuts to 20,000 — about one-quarter of the department’s 82,000 person workforce.
The plan, under the leadership of Health Secretary Robert F. Kennedy Jr., is to restructure the department by consolidating 28 divisions into 15, including the creation of a new division called the Administration for a Healthy America (AHA).
“I want to promise you now, we’re going to do more with less,” Kennedy said in a video posted on YouTube. He added, “The entire federal workforce is downsizing now, so this will be a painful period for HHS.”
The Health and Human Services Department is responsible for protecting public health and administering more than 100 programs. That includes programs that service children, families, seniors, people with disabilities and underserved communities. HHS is also charged with managing Medicaid and Medicare; administering drug and food safety; leading efforts in disease prevention and other medical research; responding to public health emergencies; and providing mental health and substance abuse support programs.
Approval is mixed on Trump’s handling of the economy
Reuters/Ipsos (March 10-12). Some 57% of all adults say Trump’s moves to shake up the economy are too erratic, while 32% disagree and 11% have no answer.
NBC News (March 7-11). Some 44% of registered voters approve of Trump’s handling of the economy compared to 54% who disapprove.
Quinnipiac University (March 6-March 10). Some 41% of registered voters said they approve of Trump’s handling of the economy versus 54% who disapprove. When asked how to describe the state of the nation’s economy, 31% said it was poor; 45% said it was not so good; 22% it was good; 1% said it was excellent and 2% had no answer. The poll notes that the perception of the economy has dropped and is now at the level last seen in May 2023.
The Economist/YouGov (March 1-March 4). Some 46% of those surveyed strongly or somewhat disapprove of Trump’s handling of inflation/prices, while 42% strongly or somewhat approve and the remaining have no opinion. When it comes to jobs and the economy, those surveyed were split 44% to 44% on approval and disapproval of Trump; 11% had no opinion.
NPR/PBS NewsMarist (Feb. 24-Feb. 26): Some 42% say the direction that Trump is taking with the U.S. economy is for the better, while 46% say it’s for the worse. However, 11% say there is no real change. And when it comes to prices, 57% of Americans surveyed say the price of groceries will likely increase in the next six months, while 26% say prices will remain the same and 17% say prices would decrease.
On Jan. 20, Donald Trump was sworn in to the presidency and quickly launched a bevy of executive orders.
The orders freeze federal hiring; withdraws the U.S. from the Paris Climate Agreement; halts the TikTok ban for 75 days; restricts birthright citizenship — a right guaranteed by the 14th Amendment; bars asylum to those arriving at the Southern border; and establishes the Department of Government Efficiency. He further made several orders intended to increase the oil supply.
Trump additionally revoked around 80 executive orders that former President Joe Biden made during his term. Trump also pardoned nearly 1,600 members of the Jan. 6, 2021 attack on the Capitol.
Trump did not enact any tariffs, as he promised to do on the first day of his presidency, but he did order a review of trade policy. And, during a press conference later that day, said Canada and Mexico could see a 25% tariff as soon as Feb. 1. During the conference, Trump also indicated that he “may” impose a universal tariff.
On the financial side, Trump ordered all heads of executive departments and agencies to “deliver emergency price relief,” and included a list of appropriate actions. Verbatim, the order called to:
Lower the cost of housing and expand housing supply.
Eliminate unnecessary administrative expenses and rent-seeking practices that increase healthcare costs.
Eliminate counterproductive requirements that raise the costs of home appliances.
Create employment opportunities for American workers, including drawing discouraged workers into the labor force.
Eliminate harmful, coercive “climate” policies that increase the costs of food and fuel.
Trump’s campaign promises
Here are some of the major proposals Trump made during the 2024 election, along with the opinions of economists and other experts on how those promises could play out.
(Photo by Scott Olson/Getty Images News via Getty Images)