Trump avoids mention of tariff refunds in State of the Union speech

Posted on by

  • In today’s CEO Daily: Diane Brady shares key insights from Trump’s State of the Union address.
  • The top leadership issue: A company is seeking a refund.
  • Market performance: Global markets are up, with the FTSE reaching a new high due to strong earnings.
  • Additionally: All the latest news and discussions from .

Good morning. President Donald Trump delivered his State of the Union address last night to a nation increasingly uncertain about his economic policies and handling of key business matters. Here are some significant takeaways for leaders from the speech, which was the longest on record at one hour and 47 minutes and the first delivered during a partial government shutdown:

Regarding the economy: The president described an economy “roaring like never before,” and it is indeed performing relatively well, with a 2.2% inflation-adjusted growth last year and an unemployment rate of 4.3%. However, many voters are feeling pessimistic due to , with consumer sentiment 20% lower than when Trump took office. As my colleague Geoff Colvin notes, this discrepancy exists. Regardless of whether the economic growth is or not, discontent and signs of recession are emerging among the bottom 80% of consumers. One acknowledgment was a for “forgotten American workers” without specific plans. This initiative could cost approximately $10 billion, a relatively small sum compared to the estimated $4 trillion in tax cuts over the next decade from the One Big Beautiful Bill act. These cuts are of social security, Medicare, and Medicaid, and will not address a $38.5 trillion , with debt-to-GDP ratios projected to reach 130% within the next decade.) Key takeaway: While tax cuts and technology provide an economic boost, the rising deficit and cost-of-living crisis may hinder growth.

On tariffs, trade, and geopolitics: Trump acknowledged the “unfortunate ruling from the Supreme Court” regarding the $133 billion in tariffs he imposed last year using emergency powers, but he pledged to continue his efforts by utilizing other legislation. There was no mention of refunds. (FedEx has already, .) This is despite the fact that the goods and services deficit significantly widened to or that Democrats estimate tariffs have cost the average family over the past year. Key takeaway: Continue to rigorously assess supply chains, monitor geopolitical developments, and mitigate long-term risks.

Regarding technology, talent, and the state of industry: There were no unexpected developments for those who have observed the trends in DEI, oil and gas companies, or healthcare under this administration. Health insurers and drug manufacturers continue to face criticism, and Trump discussed his focus on increasing transparency through . However, he did mention compelling tech companies to construct their own power plants for their data centers to control energy expenses. And I perceived a more moderate stance on certain issues, ranging from welcoming legal immigrants to intensifying efforts against insider trading. Key takeaway: With the mid-term elections approaching, the political maneuvering is set to begin. Volatility is now the standard.

Contact CEO Daily via Diane Brady at