One Saturday evening in Austin, at the bottom of a dinner that never closes, Maria deposits the bill on the table: 38.50 dollars of burgers and sodas. The customer slips a ten ticket for her, in addition. Before, this tip would have inflated his taxable income; From now on, she puts it in her pocket, the IRS (the tax administration is responsible for collecting federal taxes,) will not see the color. Signed on July 4, 2025, the One Big Beautiful Bill Act-Flunchy name chosen by Trump himself-disorganizes up to 25,000 Tips per year for servers, hairdressers, drivers, deliverers and other professions that Washington must still list. Not anything in a country where the tip is almost compulsory.
Same logic for overtime: up to $ 12,500 a year for a single, 25,000 dollars for a couple, but only on the Overtime part. The advantage applies for the years 2025 to 2028. Beyond an annual income of $ 150,000 for a single person (300,000 dollars for a couple), it gradually decreases, until they disappear completely for the highest income. Fica contributions (the acronym of Federal Insurance Contributions Act, the American equivalent of our social contributions for retirement and health insurance of seniors) remain due, but income tax disappears on these amounts.
The National Restaurant Association speaks of“A puff of oxygen to recruit”. Maria, she will especially think of her old Honda Civic, which she may replace with a vehicle Made in USA.
Frank cuts in theEfederal state
In Washington, federal officials understood the message: the era of “Always more” is finished. The 2026 budget ampute of $ 163 billion (23 %) the civil credits that Washington votes each year outside the defense. This position, which covers education, the environment, research, diplomacy and the functioning of federal agencies, is the main target of Trump.
Federal officials understood the message: the era of “always more” is over
Military and border credits are skyrocketing. The 2026 budget is not content to cut on the administrative: he gave the military. Defense climbs to $ 1,010 billion, + 13 % in one year, or 119 billion injected with a sudden in the American arsenal. The Ministry of Justice has launched a deferred departure program: between 4,000 and 4,500 agents go, for $ 470 million in savings. The cuts strike strongly in cultural, environmental and educational agencies, some seeing more than 20 % of their budget. Opponents cry out “Social massacre”but Trump insists that “An saved dollar is a dollar that protects America”. Concretely, in a state like Maryland, a computer subcontractor of the environmental protection agency could see its contract amputated and dismiss a dozen employees; Conversely, in Arizona, a manufacturer of scanners for border posts could hire around thirty people to meet the increase in safety credits. The priorities change, and with them the meaning of the flow of money.
Trump erects an industrial bulwark
April 5, 2025, 0:01: all imports to the United States, whether they come from China, Vietnam, Mexico or Europe, are struck by a universal rate of 10 %. The weapon used: the ieepa (International Emergency Economic Powers Act), a legal tool that allows the president to act quickly in the name of national security. As of April 9, the White House hardens the device with a surcharge “Converse” Against countries whose trade surplus is deemed excessive. Germany is the main target, and with it the whole European Union, since the single market is struck as a whole. Summer sees a new lap: since 1er August, customs duties on a wide range of European products-automotive, machine tools, agrifood goods-are 15 %.
Trump justifies this increase by the need to rebalance exchanges and end decades of “Unfair competition”. In fact, this policy protects whole sectors, from steel to electronics, preventing American industry from being laminated by cheaper imports. His opponents denounce a protectionism that isolates America; He sees it as a bet on the future: preserving the industrial tool, defending qualified jobs, protecting an economic and cultural identity. In manufacturing states, the argument hits the bull’s eye: each Ford or Chevrolet pick-up out of the factory is, for many, a piece of sovereignty.
Beijing on a break, but under pressure
If Europe collects tariff shock, China remains the other priority target. Spring surcharge, especially on electronics and industrial machines, remain in place. But on August 12, Trump agreed to freeze any new increase with Beijing for three months – a tactical truce that does not touch the barriers already imposed. Behind the scenes, he maneuver otherwise: three-band billiards in semiconductors. With a 15 % sample on certain flea sales, NVIDIA and AMD continue to sell their products in China … and the federal state collects, without touching the taxpayer’s portfolio. These additional income can finance research and development and maintain industrial tool on American soil, while reminding the world that now Washington dictates the rules of technological game. His detractors cry out “Rançon economy” ; His supporters greet a realism that brings money back to the Asian giants.
A lower dollar, stronger exports
While China negotiates under pressure, another weapon is put in place: a lower dollar, cut to boost exports. The dollar has dropped 9.5 % since January. Result: in the machine-tool workshops of Ohio and Wisconsin, as in the chemical complexes of Louisiana where the air carries the spicy smell of ammonia of fertilizer factories, we rub our hands: a lower dollar makes each cargo shipped to Latin America or Africa a little more profitable. According to official data from the US government, the trade deficit (the difference between the value of imports and that of exports) increased from $ 71.7 billion in May to 60.2 billion in June 2025.
