Trump’s Economic Strategy Delivers Record Growth in Wages, Investment, and Tariff Revenue

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President Donald Trump’s economic policies are driving historic gains across several key metrics, including blue-collar wages, capital investments, and federal revenue from tariffs. According to senior Treasury officials, this combination of strategic trade deals, pro-growth tax policies, and a focus on American manufacturing is producing a stronger and more resilient economy.

Joe Lavorgna, who serves as counselor to Treasury Secretary Scott Bessent, outlined the core pillars of this success: “America First” trade, a “Blue-Collar Boom,” and a “Capital Expenditures Comeback.” Speaking to The New York Post, Lavorgna emphasized that these outcomes directly counter predictions that Trump’s tariff-focused agenda would destabilize the global economy. Instead, the numbers show otherwise. Federal revenue from tariffs reached over $200 billion in fiscal year 2025 and is projected to surpass $300 billion by the end of the calendar year, setting a new record.

Meanwhile, blue-collar workers, those in trades, manufacturing, and hourly jobs, have experienced real wage growth of 1.7% since President Trump took office. That’s the strongest increase recorded under any administration since the early 1970s.
Lavorgna pointed out that many of these workers aren’t college graduates but are now earning higher pay thanks to a stronger domestic industry and job demand. “They’re the backbone of the American market,” he said.

In terms of business investment, capital expenditures have surged by 16.6% in the first half of the year, the largest non-pandemic rebound since 1997. Business equipment production rose 23% in the first quarter and 11% in the second quarter, on an annualized basis. These gains are being linked to provisions in the “One Big Beautiful Bill,” as Trump has referred to it, which allows companies to deduct production-related expenses and investments. These incentives are proving critical in attracting private-sector capital.

At a recent economic summit in Pittsburgh, President Trump announced more than $100 billion in new investments across the artificial intelligence and energy industries. The momentum continued with a new trade agreement with Japan, which includes a reported $550 billion in Japanese investment into U.S. industries, along with a reciprocal 15% tariff on Japanese exports. Lavorgna credited this reshoring trend to the administration’s tariff policy, stating, “It’s clear that the tariffs have had their desired effect.”

While core inflation remains steady at around 2%, the Consumer Price Index (CPI) has risen just 2.7% over the past year, according to data from the United States Bureau of Labor Statistics (BLS). That suggests that Trump’s policies have managed to fuel growth without triggering runaway inflation.

With new trade agreements still under negotiation—including one with the European Union that could involve baseline tariffs of 15%, possibly rising to 50% on steel and aluminum if talks collapse—the administration is positioning the United States for long-term economic gains. Lavorgna summed it up simply: “We’ve got the revenues. We haven’t had inflation. And we’re getting the capital commitments for reshoring here. So to me, it’s a win-win-win.”