President Trump made the following promises regarding the economy as he campaigned for office in 2024 and followed through with varying degrees.

Tariff Promises

President Trump said he would add a tariff of 10% to 20% to all nondomestic goods sold in America.  He imposed the tariff at 10%.  This tariff remains in place in almost every country in the world.  He also said he would add a 60% tariff on goods from China.  In March, in addition to the already levied 10%, Trump placed an additional 10% tariff. China responded with additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy and beef, and expanded controls on doing business with key U.S. companies.  Trump retaliated with his so-called tariff “Liberation Day,” announcing an additional 34% duties on all Chinese imports.  Thus the current tariff (adding each increase) is just short of 55%.

 Collectively, these three promises continue Trump’s efforts to raise tariffs on foreign goods, especially when foreign countries impose tariffs on the U.S. These foreign nation tariffs are the target of Trump’s reciprocal tariff policy. Independent groups estimated that Trump’s proposed tariffs would cost a typical family between $2,000 and $4,000 a year and some Senate Republicans continue to expressed skepticism about the plan.

Ban U.S. companies from investing in Chinese companies, and ban Chinese companies from investing in U.S. companies

In February, President Donald Trump signed a memorandum that directs the Committee on Foreign Investment in the United States to restrict Chinese investments in strategic areas. The national security memorandum is aimed at promoting foreign investment while protecting U.S. national security interests from threats posed by foreign adversaries like China. The order says that China is “exploiting our capital and ingenuity to fund and modernize their military, intelligence, and security operations, posing direct threats to United States security,” (Reuters)

The Trump administration softened its language on China to maintain a fragile truce in their trade war, but Congress is charging ahead with more restrictions in a defense authorization bill that would deny Beijing investments in highly sensitive sectors and reduce U.S. reliance on Chinese biotechnology companies.  Included in the 3,000-page bill, approved by the House in December, is a provision to scrutinize American investments in China that could help develop technologies to boost Chinese military power. The bill, which next heads to the Senate, would also prohibit government money from being used for equipment and services from blacklisted Chinese biotechnology companies. (AP)

Adopt a four-year plan to phase out Chinese imports

This promise would expand on policies Trump sought to impose on China during his first presidency. The aim would be to counter China’s influence in the international economy and erase advantages China has over U.S. companies. 

So far, the four-year plan has not been implemented.  However, as noted in the previous section there has been much activity regarding trade, investments, and tariffs.

Provide a “middle class, upper class, lower class, business class, big tax cut.”

According to the Tax Foundation, the One Big Beautiful Bill Act (OBBBA) that Trump signed into law last summer represents the country’s sixth largest tax cut and is expected to reduce federal tax revenue by $5 trillion from 2025 through 2034.  The tax bill Trump signed in 2017 did lower taxes for all income groups at least initially, but wealthier taxpayers gained disproportionately.

• End taxation on Social Security

Trump wrote on Truth Social, “Seniors should not pay tax on Social Security.” The Committee for a Responsible Federal Budget estimated that doing this would cost $1.6 trillion to $1.8 trillion over a decade.  There is no provision in the OBBBA that exempts Social Security from federal income taxation. Instead, the bill expands a deduction for seniors—$6,000 for individuals and $12,000 for married couples—which in some cases may incidentally offset the portion of Social Security that would otherwise be taxable.

• End taxation on tips 

Ernie Tedeschi, at the Yale Budget Lab, found that 2.5% of workers are in tipped jobs, including 5% of workers in the bottom quarter of earners. Trump was the first to propose the elimination of taxes on tips. Some economists have mixed feelings about whether the benefits to workers would outstrip the cost to the government, and about whether companies would take advantage of the new policy to force more workers into tipped jobs. 

The “no tax on tips” policy allows certain service workers to deduct up to $25,000 of their tip income       from federal taxes, but it does not eliminate all taxes on tips. While eligible workers can deduct tips from their taxable income, they must still report all tips to their employer and IRS.  Tips are still subject to Social Security and Medicare taxes, as well as state taxes.  In addition, not all service workers will qualify for the deduction.  Only those that receive tips “customarily and regularly” in their jobs are eligible.  The policy has sparked discussions with some advocating higher base wages for employees.

• End taxation on overtime

This provision allows eligible employees to deduct up to $12,500 of qualified overtime pay from Income taxes for tax years 2025 through 2028.  This does not include salaried employees.  It isn’t the full overtime amount that is deductible; it’s the extra compensation over regular wages. So if you make $20 an hour and $30 in overtime, only that $10-per-hour difference counts. The entire provision sunsets in 2028—though it has a good chance of becoming politically permanent.

• Reduce taxation for Americans living overseas

Some Americans living abroad pay taxes to both the U.S. and a foreign country, although they can deduct the taxes they paid to the foreign government. Critics suggest that this could incentivize higher-income Americans to move to lower-tax countries overseas and escape U.S. tax liability.  As of January 2026, the IRS is still taxing Americans living overseas. 

• Reduce the corporate tax rate from 21% to 15% “for companies that make their products in America” 

Trump’s 2017 tax law previously cut the corporate tax rate from 35% to 21%. The corporate tax rate remains at 21%.

• Put a temporary cap on credit card interest rates

Trump said he wants to cap credit card interest rates at around 10%. When he made the pledge in September 2024, the typical interest rate for credit card accounts was 22.8%. The typical rate has never been as low as 10%, going back to 1994, when researchers began collecting data on credit card interest rates. Rates briefly went as low as 12% in 2003. Skeptics say banks might counter by tightening standards for who can have cards.  President Trump recently set a January 20, 2026, deadline for banks to comply voluntarily, but most lenders have refused.  He is now urging Congress to pass a one-year federal law to lower the rates to 10%.

• Cut car insurance rates by 50%

It’s unclear how Trump could lower car insurance rates. Auto insurance is regulated primarily at the state level, and insurers still price policies based on risk (your driving record, vehicle, ZIP code, coverage, and claims trends).

• Make interest on car loans tax deductible

Trump revealed this proposal in a speech to the Detroit Economic Club, pitching it to boost the automobile industry. The new 2025 Trump tax law, One Big Beautiful Bill Act, made car loan interest deductible (with qualifications and limits).. Not all car loans qualify for the new tax deduction. It must be for a new car assembled in the U.S, not for a used car. It must be for personal use, not a commercial vehicle.

• Make it tax deductible to purchase a home generator

Trump made this promise after Hurricane Helene and Hurricane Milton struck. However, the Internal Revenue Service (IRS) does not consider a whole house generator a standard home expense that qualifies for a tax deduction. In most cases, home improvements and appliance installations are considered personal expenses, which means they are not deductible unless they fall into specific categories recognized by the IRS.

However, a generator may qualify for tax benefits under the following conditions:

1. Medical necessity – If the generator is essential for powering medical equipment, it may be deductible as a medical expense.
2. Business use – If the generator is used to support a home-based business, a portion of the cost may qualify as a business expense.
3. Rental property depreciation – Landlords who install a generator in a rental property may be able to claim depreciation on their tax returns.
4. Energy efficiency programs – While whole house generators do not qualify for federal energy tax credits, some state and local incentives may apply.
5. Restore the state and local tax deduction (SALT)

Trump’s 2017 tax law capped the amount taxpayers can deduct for state and local taxes on their federal tax returns at $10,000. This irritated affluent suburbanites in blue states, where state and local taxes tend to be high. Trump promised to reverse his action on the deduction before a rally on New York’s Long Island, which is home to many such taxpayers. Trump wrote that he would “get SALT (State and Local Tax) back.”  The irony is that the cap was legislatively set to expire in 2025.  The OBBBA legislation implements a five-year sunset for the higher SALT cap amount $31,500 (cap reverts to $10,000 in 2030 for all taxpayers) and contains loopholes for some business owners in states that permit them.

Stop China from buying land in the U.S.

As of 2021, Chinese investors, entities and U.S. corporations with Chinese shareholders collectively owned 383,935 acres of agricultural and nonagricultural land in the United States,. It is unclear how many of these acres are controlled by the Chinese Communist Party. An expert told PolitiFact that although the Chinese Communist Party could influence or coerce Chinese people or entities to use farmlands for spying or other purposes, there hasn’t been any evidence of such activity. In July 2025, the U.S. Department of Agriculture (USDA) Secretary Brooke Rollins said that the department would no longer allow “Chinese nationals” and other foreign adversaries to purchase farmland in the United States.

Create “freedom cities”

Trump said he would hold a “national contest to charter as many as 10 new cities on a very small portion of federal land and award these charters to the best ideas and proposals for development.” Trump billed this contest to boost U.S. industry and build fast-growing cities from scratch. The plan aims to “reopen the frontier and reignite American imagination.  The projects would give hundreds of thousands of young people, and hardworking families, a new shot at home ownership, and achieve the American Dream.” He said the land would not infringe on national parks or other “natural treasures.”  While an interesting concept, with some interest from independent developers, this idea has yet to be initiated.

Create “baby bonuses” for young parents

Trump didn’t specify how his idea would work, but Democrats have previously supported “baby bonus” proposals, so this would be an area for bipartisan cooperation.  A provision of Trump’s tax legislation, Trump Accounts are meant to give $1,000 to every newborn, so long as their parents open an account. That money is then invested in the stock market by private firms, and the child can access the money when they turn 18.

The Trump Accounts initiative is a new savings tool designed to help children in America start savings.    Here’s what you need to know about the Trump Accounts for kids. The program is for children born after January 1, 2025, and ends on December 31, 2028.  The child must have a Social Security number.  The federal government will provide a $1,000 contribution to the account at birth. Parents and others can contribute up to $5,000 per year until the child turns 18.  Employers can contribute up to $2,500 of the $5,000.  The account money will be invested in American corporations.  The account also offers tax advantages like the traditional IRA.

Oppose corporate bailouts

Trump has focused his opposition to government bailouts, such as Silicon Valley Bank, which collapsed during Biden’s presidency.  While there have been no bailouts, the fast pace of monthly US corporate bankruptcies has put 2025 on track to be one of the busiest years for filings in more than a decade.

Conclusions

While there were many promises, few have been successfully initiated.  Tariffs have been imposed on China and many other countries.  The Constitutionality of the President’s orders in this area is still to be evaluated by the Supreme Court.  The international turmoil of the tariffs has caused chaos.  His promises regarding taxes have been implemented but are not as they seem.  However, his promise to stop China from buying US land has been implemented according to USDA Secretary Rollins.