2 Trump Policies Experts Predict Could Improve ‘Strong’ Economy Inherited From Biden
Written by
Nicholas Morine
Edited by
Amber Barkley
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As President Donald Trump took the reins from former President Joe Biden following his inauguration on Jan. 20, 2025, he inherited what The Economic Policy Institute termed a “historically strong economy” characterized by softening inflation — after a period of historic highs — a strong labor market and consistent GDP growth.
The question remains, however: Will Trump continue to build upon the economy inherited by his predecessor? And, if so, which foundational policies might further strengthen the American economy as his second term unfolds?
Trump Tariffs Reignite Interest in Reshoring US Manufacturing
While tariff talk has dominated headlines — predominantly critical in nature — at least one element of the Trump administration’s trade policy has spurred positive growth for the U.S. economy.
According to CRE Daily: “Despite the volatility [created by tariffs], manufacturers continue expanding stateside.”
Citing data from JLL, the publication indicated that manufacturers now comprise 19% of industrial space demand, a whopping 354% uptick from 2018’s numbers. That growth is set to continue its rapid expansion under Trump’s second presidency, expanding to 25% by 2028.
“Manufacturing in-region is really the future of manufacturing,” said Greg Matter, head of advanced manufacturing at JLL.
CRE Daily gave credit both to Trump’s earlier tariff policy and Biden’s pro-manufacturing stance as driving growth in the sector and also suggested that commercial real estate experts expected long-term upside. Industry insiders such as PwC’s Tim Bodner were cited as having the opinion that Trump’s tough stance on trade policy had brought in new capital and re-energized reshoring efforts. Bodner wasn’t alone.
“At the end of the day, it’s pain that drives change,” Brandon Pappas of Lee & Associates told CRE Daily. “My hope is that the U.S. ultimately benefits through stronger trade deals and a wave of reshoring.”
Small Business Administration Backs Trump’s 2017 TCJA Extension
While the sweeping tariffs could threaten American small business owners, leadership at the Small Business Administration (SBA) pointed to the expected extension of Trump’s 2017 Tax Cuts and Jobs Act (TCJA) as being a great boon for U.S. entrepreneurs.
In a recent interview with Fox News, SBA administrator Kelly Loeffler said these cuts would help small business owners “tremendously,” and, per Politico, SBA head of communications Caitlin O’Dea reinforced that opinion.
“The SBA fully supports President Trump’s efforts to restore fair trade, which will bring back American jobs and revitalize American industry, empowering entrepreneurs with the level playing field to compete and win,” O’Dea said.
“Combined with SBA’s new manufacturing initiative, including our effort to cut $100 billion in red tape, this administration will unleash historic opportunity for small businesses and workers alike,” she added.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out 4 Trump Policies That Could Reverse ‘Strong’ Economy Inherited From Biden.
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