3 things to expect from Trump's economy pitch at the State of the Union
Many Americans are souring on the president's handling of the economy with grocery prices and electricity bills stubbornly high
President Donald J Trump addresses a joint session of Congress as Vice President JD Vance and Speaker of the House Mike Johnson (R-LA) listen in the Capitol building's House chamber on Tuesday, March 04, 2025 in Washington, DC. (abin Botsford/The Washington Post via Getty Images)
At Tuesday evening's State of the Union address, President Donald Trump is expected to talk up economic accomplishments after major setbacks.
The speech comes only four days after the Supreme Court knocked down his signature tariffs. Ever since, the White House has scrambled to rebuild a parallel tariff apparatus with mixed success.
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Still, the White House believes that Trump has racked up enough successes that make it easier for Republicans to keep control of Congress in this year's midterms.
"The President will proudly tout his Administration's many record-breaking accomplishments, and also layout an ambitious agenda to continue bringing the American Dream back for working people," White House Press Secretary Karoline Leavitt said in a statement.
Voters, though, aren't as optimistic. Trump's overall job approval has slipped. Many Americans are souring on the president's handling of the economy with grocery prices and electricity bills stubbornly high. Job seekers are stuck competing in a labor market with few open positions, and AI is fueling fears of enormous displacement in the next decade.
Here are three items to watch for in Trump's speech.
A Big Tech pact
The Wall Street Journal reported on Tuesday that Trump will announce "rate payer protection pledges" that ensure tech companies pay for swelling electricity costs connected to data centers and not American families.
A new poll from Echelon Insights showed 46% of respondents said they would either "strongly or somewhat oppose" a new data center being built in their community.
Tariffs make a comeback
Trump could provide more details on his tariff-back up plans after the Supreme Court loss. He announced his intention to carry out a 10% global tariff on Friday, and threatened a 15% rate using a separate legal authority that the high court didn't touch.
However, the tariff which took effect on Tuesday was locked in at 10%. The White House hasn't provided a timeline for when the rate will be dialed up to the maximum 15% allowed.
"Trump Accounts" and tax cuts
The president is expected to promote the so-called "Trump accounts," established in last year’s tax package to provide $1,000 for babies born in the U.S. during Trump’s second term. The program is set to kick off on July 5, the day after the U.S.’s 250th anniversary of its independence.
Trump will also plug other legislative achievements, such as no tax on tips and overtime pay which apply only to certain jobs in the service and hospitality sector.