Donald Trump: Presidency in 2025 and Prospects for 2026
Berlin, 14 January 2026 – President Donald Trump’s second term, which began in January 2025, saw a continuation of his ‘America First’ agenda, marked by significant domestic and foreign policy shifts. From pardoning figures involved in the January 6 Capitol riot to imposing tariffs and engaging in high-stakes diplomacy, Trump’s actions reshaped US politics and strained relations with allies, including Germany. This article examines key developments in 2025 and looks ahead to 2026, providing context for English-speaking readers on how these events impacted transatlantic relations.
Key Domestic Policies in 2025
In 2025, Trump focused on economic revival and immigration enforcement. He celebrated the auto industry’s recovery, attributing it to his policies, and announced measures to safeguard Venezuelan oil revenue. Domestically, Trump pardoned Tim Leiweke, a former entertainment executive indicted for bid-rigging, and renamed the US Institute of Peace after himself. He also continued attacks on immigration, targeting Somali communities and criticising Representative Ilhan Omar. Health-wise, Trump’s physician confirmed his ‘exceptional health’ following a check-up. Economically, Trump pushed for tariffs on trading partners of Iran and China, aiming to boost US manufacturing.
Foreign Policy and International Relations
Trump’s foreign policy in 2025 emphasised confrontation with adversaries. He imposed 25% tariffs on countries trading with Iran, including India and China, and threatened military action against Iran amid protests. In the Middle East, Trump brokered a ceasefire between Israel and Hamas, drawing praise but facing criticism for not including all factions. He hosted leaders from the Democratic Republic of Congo and Rwanda, signing a peace agreement. On Russia-Ukraine, Trump negotiated with Putin but faced impeachment over withholding aid. With China, tensions escalated over trade and AI competition. In Europe, Trump’s tariffs on steel and aluminium strained relations with Germany, prompting German Chancellor Friedrich Merz to seek exemptions and push for EU-US free trade talks. Merz met Trump in June 2025, discussing defence and trade, while Vance’s Munich speech highlighted ideological divides.
Key Facts / Stats
| Event | Date | Details |
|---|---|---|
| Trump Pardons January 6 Rioters | January 2025 | Approximately 1,500 individuals pardoned on first day of second term. |
| Iran Tariffs Imposed | 13 January 2026 | 25% tariffs on trading partners, effective immediately. |
| Merz-Trump Meeting | June 2025 | Discussed defence spending and trade; Merz sought tariff exemptions. |
| US-China Trade Deal | July 2025 | Framework agreement amid ongoing tensions. |
| Defence Spending Increase | 2025 | Germany raised defence budget to €49.3 billion, meeting NATO 2% target. |
Frequently Asked Questions
What were the main economic policies under Trump in 2025?
Trump focused on tariffs to protect US industries, including 15% on German exports and 25% on Iranian trading partners. He aimed to reduce inflation through energy independence and manufacturing boosts, though critics argued this risked trade wars.
How did Trump’s policies affect Germany?
Germany, a key US trading partner, faced tariff pressures, prompting Chancellor Merz to negotiate exemptions. Defence cooperation increased, with Germany boosting spending to 2% of GDP, but ideological clashes, like support for far-right AfD, strained ties.
What is the outlook for 2026?
With elections looming, Trump may intensify tariffs and immigration enforcement. In transatlantic relations, Germany could deepen EU defence autonomy if US support wanes, potentially leading to a ‘post-Atlantic’ era as Merz warned.