US President Donald Trump’s tariffs have been a point of concern for economists and markets alike. However, despite initial predictions of a recession, the economy has shown remarkable resilience. Three months after the implementation of the “Liberation Day” tariffs, prices in shops remain stable, unemployment remains flat, and the S&P 500 index has recovered to all-time highs.
A 90-day pause on many tariffs, announced by Trump in April, was intended to calm market concerns. Although this pause is set to expire on July 9th, traders seem less concerned about the prospect of further tariffs being reinstated. The pause has given the economy some breathing room, and investors have begun to take notice.
As the trade war continues to unfold, economists are looking for signs that it may be nearing a resolution. Recent concessions made by countries like Vietnam have offered some hope for a peaceful resolution. Meanwhile, experts are exploring alternative solutions, such as reducing student debt, which totals $1.8 trillion and has become a pressing issue under the Biden administration.
Despite Trump’s efforts to tackle debt, the president’s track record on this issue is uncertain. The economy remains dynamic, with ongoing challenges and uncertainties. However, for now, it appears that America’s economy is dodging disaster, and markets are taking notice.
Source: https://www.economist.com/finance-and-economics/2025/07/06/how-americas-economy-is-dodging-disaster