Trump Tariffs, AI Race, and Economic Instability Concerns

Key Quotes

"One of the biggest storylines that we've been following here in 2025 has been President Trump's implementation of his economic agenda, both through a huge tax cut package that passed Congress in the middle of the year, and then all along the way, these tariffs that the president has imposed on a number of countries. And the tariffs remain a big story. The Supreme Court now is reviewing his power to impose these tariffs, and that's a decision that we could have soon to determine whether or not he can continue to impose tariffs against countries without congressional approval."

Damian Poletta, Washington coverage chief at The Wall Street Journal, highlights the significant impact of President Trump's economic policies in 2025. Poletta points to both tax cuts and the widespread imposition of tariffs as key developments. The ongoing Supreme Court review of the president's authority to enact tariffs without congressional approval is presented as a critical storyline with potential future implications.

"The AI race was hands down the biggest story for the tech and media team this year. We've covered the battle for talent among top AI labs like Meta, Google's DeepMind, OpenAI, and Anthropic. The safety concerns that these new powerful tools raise, the otherworldly sums of cash being invested in building out AI infrastructure, and more recently, concerns about an AI bubble. And whether it can work towards turning a profit."

Sarah Kraus, technology and media editor at The Wall Street Journal, identifies the AI race as the paramount story for her team in 2025. Kraus details the competitive landscape among leading AI labs, the significant financial investments in AI infrastructure, and emerging concerns about potential market bubbles and profitability. She emphasizes the dual nature of AI's development, encompassing both its transformative potential and the associated risks.

"For 2026, one thing will be super focused on is the financing of the AI arms race and the worries that a bubble is forming right now in AI. And we've been documenting the enormous sums of money that have been flowing from Wall Street into all these data centers that are being built out for the Open AIs of the world."

Amol Sharma, the financial editor at The Wall Street Journal, indicates a primary focus for 2026 on the financial aspects of the AI industry. Sharma points to the substantial capital being directed towards AI development and infrastructure, specifically mentioning data centers. He expresses concern about the potential for an AI bubble, driven by the massive influx of investment.

"I would say this year has fundamentally changed the foundations of how businesses operate. From Trump's tariff policy to the EV policy, to food policy, it has upended how businesses done in America. And I'm not sure there will be a resumption of before times. So looking ahead, we are watching everything from how AI changes how businesses operate and the workplace, to how tariff policy changes the global economy."

Caitlyn Laba, corporate editor at The Wall Street Journal, asserts that 2025 has fundamentally altered the operational landscape for businesses. Laba cites various policy shifts, including tariffs, electric vehicle (EV) policies, and food policies, as disruptive forces. She suggests that a return to pre-2025 business practices is unlikely and that future monitoring will focus on AI's impact and the ongoing effects of tariff policies on the global economy.