Strong Rebound Follows Weak Start To 2025, With Tariffs And Domestic Production Fueling Expansion
Wednesday, December 24, 2025, 7:15 A.M. ET. 4 Minute Read, By Haylee Ficuciello, Economy & Finance Editor: Englebrook Independent News,
WASHINGTON, DC.- The U.S. economy rebounded sharply in the third quarter of 2025, with real gross domestic product (GDP) increasing at an annual rate of 4.3 percent, according to new figures released Tuesday, December 23, 2025, by the Bureau of Economic Analysis (BEA).
The third-quarter surge, covering the months of July, August, and September, marks a notable acceleration from the 3.8 percent growth rate recorded in the second quarter and represents the strongest quarterly expansion of the year. The data was released as an initial estimate, replacing the standard “advance” GDP report that was delayed due to the recent federal government shutdown.
A Volatile Year Shows Signs Of Recovery;
While the third-quarter numbers point to renewed economic momentum, the broader picture for 2025 remains mixed. The U.S. economy contracted by 0.6 percent in the first quarter, from January through March, before rebounding with stronger growth in the spring and summer months.
Taken together, the data shows that economic growth across the first three quarters of 2025 averages approximately 2.5 percent, reflecting a year that began with contraction before gaining traction under shifting fiscal and trade conditions.
Economists note that the third-quarter surge was driven largely by increased consumer spending, higher business investment, and stronger domestic production, trends that the Trump administration has emphasized as cornerstones of its economic agenda.
Trump Credits Tariffs For Economic Gains;
Following the release of the GDP report, President Donald Trump weighed in publicly, attributing the economic growth directly to his trade and tariff policies.
“The TARIFFS are responsible for the GREAT USA Economic Numbers JUST ANNOUNCED,” Trump wrote on Truth Social. “AND THEY WILL ONLY GET BETTER!”
The president has consistently argued that tariffs on foreign imports, particularly from China and other major trading partners, have strengthened domestic manufacturing, reduced reliance on overseas supply chains, and encouraged companies to invest and produce within the United States.
Administration officials echoed that message Tuesday, pointing to rising industrial output and expanding capital investment as evidence that the tariff strategy is reshaping the U.S. economy in favor of domestic growth.
Inflation Claims Face Mixed Data;
President Trump also asserted that there is “NO INFLATION,” a claim that remains disputed by recent data trends.
Official inflation figures show that consumer prices rose to approximately 3.0 percent in September, before declining to 2.7 percent in November. However, many economists caution that the November decline may not reflect underlying price stability, citing gaps in data collection during the government shutdown that likely distorted inflation measurements.
Several economic analysts have warned that incomplete or delayed reporting during the shutdown makes it difficult to draw firm conclusions about inflation’s accurate trajectory heading into the final quarter of the year.
Policy Direction Driving Momentum;
Despite lingering concerns about inflation measurement and earlier-year volatility, the third-quarter GDP data reinforces the view that President Trump’s economic policies are contributing to renewed growth, particularly through trade enforcement, domestic investment incentives, and regulatory rollback.
The strong summer performance suggests that the economy has not only recovered from its early-year contraction but may be entering a period of more sustained expansion as policy effects compound.
With fourth-quarter data still to come, economists will be watching closely to determine whether the third-quarter surge represents a temporary rebound or the beginning of a longer-term acceleration.
Editor’s Note:
All GDP figures cited in this report are sourced from the U.S. Bureau of Economic Analysis and reflect the initial estimate for the third quarter of 2025, released on December 23, 2025, following delays caused by the recent federal government shutdown. Inflation figures are based on the most recently available Consumer Price Index data through November 2025. Statements by President Donald Trump were published on Truth Social following the GDP announcement. Reported and verified by Haylee Ficuciello, Economy & Finance Editor, Englebrook Independent News.
