<p>President Trump campaigned on the promise to boost economic growth to 4%, and that&rsquo;s exactly what we&rsquo;re seeing now. ;</p>
<p>The US Commerce Department on Friday reported 4.1% GDP growth for Q2 (April-June), which marks the strongest performance since Q3 of 2014. Growth during Q1 of 2018 was 2.2%. ;</p>
<p>Experts say the second quarter figure is probably enough to push the economy over the sought-after 3% growth rate for the year. ;</p>
<p>&ldquo;This is a boom that will be sustainable as far as the eye can see,&rdquo; says National Economic Council Chairman Larry Kudlow. &ldquo;This is no one-shot effort.&rdquo; ;</p>
<p>Consumer spending (which makes up nearly 70% of economic activity) increased by 4% compared to Q1&rsquo;s slow rate of 0.5%. The average American household spent more money on cars, healthcare, food, utilities, and accommodation. This increased spending is related to lower taxes and a robust labor market &#8211; which during the first half of 2018 created 215,000 jobs per month. ;</p>
<p>There was a noticeable slowdown in business spending, ;which was reported at 3.9% compared to Q2&rsquo;s 8.5%. ;</p>
<p>Government spending grew at a 2.1% rate compared to 1.5% during Q1.</p>
<p>Numbers for Q2 are in line with promises from the Trump Administration that GOP tax reform and regulatory policies would boost economic growth. ;</p>
<p>&ldquo;Our country is doing GREAT. Best financial numbers on the planet,&rdquo; tweeted Trump on Tuesday. &ldquo;Great to have USA WINNING AGAIN!&rdquo; ;</p>
<p>A key factor in the surge was a 9.3% jump in exports as foreign buyers scrambled to stock up on US-made products in advance of retaliatory tariffs. ;</p>
<p>The retaliatory tariffs come in response to Trump&rsquo;s tax on steel and aluminum and his 25% tariff on $34 billion worth of Chinese goods.</p>
<p>&ldquo;With the trade-related boost expected to unwind in the second half of the year, economists caution against putting much weight on the surge in the April-June quarter growth,&rdquo; notes <em>Newsmax</em>. &ldquo;The economy will this year be supported by a $1.5 trillion tax cut package and increased government spending.&rdquo;</p>
<p>Those who predict a slowdown in upcoming months and years insist the current growth rate isn&rsquo;t sustainable. ;Just take a look at the way the liberal media announced the boom:</p>
<ul>
<li><em>Trump cheers &lsquo;amazing&rsquo; economic growth as economists caution it could be a blip</em> ;(Washington Post)</li>
<li><em>GDP grew at 4.1% rate in US in latest quarter. Here&rsquo;s what that means.</em> ;(NY Times)</li>
</ul>
<p>&ldquo;In one line: looks great; won&rsquo;t last,&rdquo; said British economist Ian Shepherdson. &ldquo;If you borrow enough money from your grandchildren and throw it at the economy, it will grow faster, for a while.&rdquo; ;</p>
<p>The Federal Reserve predicts annual growth to be 2.8% this year, 2.4% the following year, and 2% for 2020. ;</p>
<p>In the meantime, Trump&rsquo;s taxes on steel and aluminum (as well as the retaliatory tariffs) are starting to ;take a toll on manufacturers. ;</p>
<p>Ford, GM, and Chrysler have already decreased profit forecasts. And Harley-Davidson says it expects to lose between $45 and $55 million this year from the tariffs. ;</p>
<p><em>But things might not be as bad as they seem. ;</em></p>
<p>On Wednesday, President Trump and European Commission President Jean-Claude Juncker announced they were working towards a zero-tariff future. ;</p>
<p>Existing tariffs will remain in effect for the time being, but officials said they were trying to &ldquo;resolve&rdquo; the steel and aluminum tariff as well as the taxes the EU imposed on the US in response. ;</p>