FX.co ★ Trump adds record $2.25 trillion to US public debt during his first year in office

US public debt increased by $2.25 trillion during President Donald Trump’s first year in office, reaching a total of $38.5 trillion. According to the US Treasury, this marks the largest increase in federal debt by a single president on record. The previous peak occurred during former President Joe Biden’s term, when the debt rose by $2.1 trillion. This underscores the accelerated pace of debt accumulation under the current administration.

The rapid rise in government borrowing reflects a variety of factors, including tax cuts, higher military spending, and fiscal stimulus measures intended to promote economic growth. While such fiscal policy supports near-term demand, it also deepens the structural deficit, requiring growing financing over the long run. Elevated public debt limits policy flexibility in the event of crises.

Valerie Hayer, a member of the European Parliament, proposed using the mounting US debt as leverage against Trump on the Greenland issue. She also flagged the EU’s access to a market of 450 million consumers as a potential bargaining tool. These suggestions reflect Europe’s readiness to wield economic levers in a clash of interests with the US administration.