Economic Highs: A Booming Market (on the Surface)
Donald Trump often touted the performance of the U.S. economy as one of his administration’s biggest accomplishments. And in many ways, 2018 was a year of strong economic indicators:
- Unemployment Rate: Fell to a 49-year low of 3.7%.
- Job Creation: Over 2.6 million jobs were added in 2018.
- Wage Growth: Modest growth was seen, with wages increasing at the fastest rate since the recession.
- Stock Market: Despite a volatile December, most of the year saw gains in stock indices, with the S&P 500 reaching record highs in the fall.
Trump attributed this to the Tax Cuts and Jobs Act of 2017, which went into full effect in 2018. The corporate tax rate was slashed from 35% to 21%, and businesses reported increased profits.
However, critics pointed out that:
- Much of the tax benefit favored large corporations and the wealthy.
- The national deficit ballooned to $779 billion, the largest in six years.
- Economic gains were uneven, with the working class seeing less benefit than top earners.
Foreign Policy: Disruption as Diplomacy
Trump’s second year saw a bold and unconventional approach to foreign relations.
1. North Korea Summit
In a historic first, President Trump met North Korean leader Kim Jong-un in Singapore in June 2018. It was a photo-op that captured global attention.
- Trump declared it a diplomatic win.
- However, no verifiable denuclearization took place.
- Critics argued that it gave legitimacy to a dictator without meaningful concessions.
2. Trade War with China
Trump imposed tariffs on billions of dollars’ worth of Chinese goods, citing unfair trade practices. China retaliated in kind.
- American farmers and manufacturers faced the brunt of the backlash.
- Talks of a trade agreement continued into 2019, with uncertainty looming.
3. Withdrawal from the Iran Nuclear Deal
In May 2018, the U.S. pulled out of the Joint Comprehensive Plan of Action (JCPOA), escalating tensions in the Middle East.
- Allies in Europe expressed disappointment.
- Iran resumed parts of its nuclear program, creating a new flashpoint.
4. NATO and International Alliances
Trump chastised NATO allies for not contributing enough militarily, calling them freeloaders.
- This alarmed traditional partners and fueled concerns about America’s commitment to collective defense.
Immigration and the Border Wall Battle
Immigration remained one of Trump’s most controversial issues in 2018. His promise of a border wall between the U.S. and Mexico became a central part of the political narrative.
Family Separations
Under the administration’s “Zero Tolerance” policy, children were separated from their parents at the southern border.
- This sparked national outrage.
- Images and audio of crying children circulated in the media.
- Trump later signed an executive order to halt family separations, but many families remained apart for months.
Government Shutdown
In December 2018, Trump refused to sign a spending bill without $5.7 billion for the border wall.
- This led to a partial government shutdown that extended into 2019—the longest in U.S. history at the time.
Cabinet Chaos and Key Resignations
Turnover in the Trump administration was high in 2018. Key departures included:
- Jeff Sessions (Attorney General): Resigned under pressure after repeated Trump criticism over recusing himself from the Russia probe.
- John Kelly (Chief of Staff): Left amid reports of tension with Trump.
- Scott Pruitt (EPA Administrator): Resigned after multiple ethics scandals.
Other key figures, such as Defense Secretary James Mattis, clashed with Trump over military decisions and would leave by early 2019.
This revolving door painted a picture of instability and reinforced the image of a White House constantly in turmoil.
