A divide is widening in the US economy as the biggest banks and technology groups shrug off Donald Trump’s tariffs to post huge earnings gains while consumer-facing companies struggle with rising costs.

The statement accurately reflects the economic landscape in mid-2025 under President Donald Trump's administration, who has implemented extensive tariffs affecting many sectors. Multiple sources indicate that while tariffs have introduced uncertainty and inflationary pressures, some large financial institutions and technology companies have managed to maintain or even increase earnings, partly due to their global reach and ability to absorb or pass on costs.

Conversely, consumer-facing companies, which are more sensitive to rising input costs and reduced consumer spending power, have struggled with profitability. This divergence contributes to a widening economic divide within the US economy.

However, the overall economic impact of the tariffs remains complex and evolving, with economists noting unpredictable effects and ongoing adjustments in markets.