One of Trump’s biggest goals is to transform the economy. He wants to fix the mess Biden made.
And Donald Trump just helped American workers in one major way according to Treasury report.
President Donald Trump’s economic strategies are delivering remarkable results, driving historic gains in tariff revenues, blue-collar wages, and capital investments, according to what a senior Treasury official detailed to the New York Post. These achievements, dubbed the “ABCs”, are otherwise known as “America First” trade, a “Blue-Collar Boom,” and a “Capital Expenditures Comeback.” They are reshaping the economic landscape and challenging critics who doubted the president’s tax-and-tariff policies.
Record-Breaking Tariff Revenues
In a recent interview with the New York Post, Joe Lavorgna, counselor to Treasury Secretary Scott Bessent, highlighted the unprecedented success of Trump’s tariff policies. Fiscal year 2025 saw Treasury revenues from tariffs soar to a record-breaking $200 billion. Revenue is like to be “more than $300 billion” by year’s end.
A new trade deal with Japan, finalized this month, further bolsters these figures, signaling robust confidence in Trump’s trade agenda. The deal also includes a commitment of $550 billion in U.S.-based investments, reinforcing the strategy’s impact.
A Surge in Blue-Collar Wages
The economic policies are also fueling a “Blue-Collar Boom,” with real wage growth for workers reaching 1.7% since Trump started his second term. As Treasury Secretary Scott Bessent noted on “Pod Force One” with New York Post columnist Miranda Devine, this marks the highest wage growth for any administration since at least Richard Nixon’s era.
Lavorgna emphasized the significance of this growth for workers who form “the backbone of the market.” He described them as “laborers … that are punching a time check when they come into work,” some without college degrees, who are now seeing tangible improvements in their paychecks.
Capital Investments Fuel Growth
Capital expenditures are experiencing a remarkable rise, with a 16.6% surge in the first half of 2025. Excluding the post-COVID recovery period, it’s the biggest gain within a two-quarter period since 1997.
Business equipment production also saw significant increases, jumping 23% in the first quarter and 11% (annualized) in the second quarter.
Lavorgna attributes this “Capital Expenditures Comeback” to the “One Big Beautiful Bill,” which allows businesses to write off certain expenses and other investments, spurring economic activity.
Driving Productivity and Prosperity
The economic momentum extends beyond tariffs and wages. At a recent Pittsburgh summit, Trump highlighted over $100 billion in investments in artificial intelligence and energy sectors, part of a series of events sparking growth.
Lavorgna noted that increased capital investments enhance productivity, elevate living standards, and support larger paychecks, creating a virtuous cycle that strengthens the blue-collar boom. Key growth sectors include communications equipment, computers, and AI, reflecting a dynamic and forward-looking economy.
Inflation in Check, Future Deals on the Horizon
Core inflation remains steady at approximately 2%, with the consumer price index at 2.7% over the past year, according to the U.S. Bureau of Labor Statistics. Looking ahead, potential trade deals, such as one with the European Union—where Trump has threatened up to 50% duties—could further influence these metrics. Lavorgna remains optimistic, noting that the combination of tariff revenues, controlled inflation, and substantial capital commitments from countries like Japan demonstrates the success of Trump’s policies.
Lavorgna summed up the impact succinctly: “As these trade deals have come through and these other countries such as Japan have committed to making major capital investments in the US, it’s clear that the tariffs have had their desired effect.” The results—record revenues, stable inflation, and a resurgence of investment in the U.S.—position Trump’s economic approach as a “win-win-win,” delivering prosperity and reinforcing the nation’s economic strength.
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