NEDERLAND — President Donald J. Trump delivered the State of the Union on Tuesday, February 24. Though the record one hour and 48 minute speech touted the success of his Administration’s efforts during the first year of his second term, here is the unredacted truth about the popularity and effectiveness of his domestic policies.

As there is a lot to cover, this installment of the Peak Report will focus mainly on Trump’s economic policies highlighted in his State of the Union address. 

Tariffs

After being hailed by chants of “USA” by Republicans in attendance, Trump boasted in his address how he had brought America to a “golden age,” in part due to his tariffs, particularly on imported goods from Canada, China, and Mexico, providing a “stunning economic turnaround” for the country.

According to data from the Yale Budget Lab, consumers were expected to face an average effective tariff rate of 16.9%—at least until the Supreme Court ruled 6-3 that Trump’s tariffs exceeded the powers given to him under the International Emergency Economic Powers Act of 1977 (IEEPA). 

Consumers may see a tariff rate of 9.1%. However, Trump instantly retaliated with an executive order instituting a 10% “global tariff” for 150 days under Section 122 of the Trade Act of 1974, claiming the country was experiencing issues with international payments. A day later, he threatened to raise that tariff to 15%.

Though an executive order has yet to be delivered on that threat, the potential increase would bring the total tariff rate for American consumers to 13.7%.   

The President’s latest executive order exempts from the 10% global tariff critical minerals, currency medals and bullion, energy products, natural resources, fertilizers, beef, tomatoes, oranges, pharmaceuticals, electronics, books, and vehicles.

Though this latest strategy from the President is set to last only 150 days unless extended by Congress, Trump stated in his address that tariffs would effectively replace the country’s “system of income tax.” 

Prior to the State of the Union, Trump railed against the Supreme Court and their decision to end his unconstitutional tariffs.

As the decision was being praised as a major victory for Congress, the Constitution, and the rule of law, no official guidelines had been presented for how importers (or consumers) would be refunded for what has already been collected.

There is an official process through Customs and Border Patrol for importers to receive their refunds, but the process could take 314 days. 

The ripple effects of the canceled tariffs have yet to truly reveal how they will impact the economy and the 18 trade deals that Trump has made by wielding tariffs as a seemingly empty threat.

Recent data shows American consumers are suffering from increased debt pressure, exacerbated by the consumer price index continuously rising: It sits now at an uncomfortable 2.5%. 

Despite the pressure Trump’s tariffs have leveraged on the world stage and on the already burdened shoulders of American consumers, at least one Trump loyalist still managed to get richer from the Supreme Court’s decision to deem the tariffs unconstitutional. 

Howard Lutnick, Trump’s Commerce Secretary, effectively authored the Administration’s push on tariffs. He bought the rights to several importers’ potential tariff refunds in 2025 for 20% to 30% of their value through his firm Cantor Fitzgerald. Despite being called a blatant conflict of interest, the move is set to earn Lutnick millions. 

Big business and data centers  

Trump earned some bipartisan praise by announcing several new policies in his State of the Union address, including the Stop Insider Trading Act. That would prohibit lawmakers, as well as their spouses and children, from buying new securities in publicly traded companies.

The bill would also require filing of a notice with the Clerk of the House at least seven to 14 days before the sale of an existing stock, and would impose fines for noncompliance up to $2,000, or 10% of the value of the investment in question. 

Though some Democrats stood and applauded Trump’s announcement of the act, others believe it does not go far enough to directly address the issue of insider trading. The act still allows lawmakers to sell stocks, to keep their existing assets, and to own stock in companies that benefit from their legislation. 

Also during his speech, Trump promised to allow private sector employees access to contribute into the same retirement plans offered to federal employees. He heralded low interest rates for home buyers to help solve the problem of housing cost inflation, and he made a call to Congress to ban corporations from being able to purchase single-family homes. 

In a surprising move, Trump announced having negotiated a “Rate Payer Protection Pledge,” requiring corporations building AI data centers to provide for their own power rather than drive up the utility rates for nearby residents.

This is a particularly prescient matter for Colorado, as Denver Mayor Mike Johnston established a moratorium on all new data center construction on Monday, February 23. That hasn't stopped a 170,000 square-foot data center from being developed at Race Street and East 49th Avenue by the company CoreSite.

Representatives for CoreSite recently opted out of attending a Town Hall meeting with city officials, utilities providers, and residents of the impacted area, citing safety concerns related to unsavory social media comments. 

The aim of the moratorium is to allow for more research to be conducted into the effects data centers will have on pollution, on locals’ electric bills, and on water usage, as well as potential health and environmental impacts, all of which are to be assessed by the state’s health department.  

CoreSite’s new building will be part of a 600,000 square-foot, three-building campus. Altogether, it is expected to utilize 65 to 75 megawatts of power, which equates to roughly 82,500 homes. It will use a maximum of 805,000 gallons of water a day—the same amount used daily by 16,000 local residents.

Representatives for CoreSite have specified that the data center will draw an average of only 35 megawatts. Denver’s Economic Development and Opportunity office has estimated the data center could create up to 175 construction jobs and 75 long-term positions, and could generate more than $200 million in tax revenue. 

These incentives may go a long way to explain why Colorado officials would circumvent research into the environmental impacts of these data centers and, for a short time before public outcry, they considered a special tax break for CoreSite that would have allowed the company to receive a return of 50% of sales and use taxes from their Denver campus.

Global real estate analysis shows that, as a result of the country’s increasing reliance on AI and cloud-based technology, the market for data centers has more than doubled in the last four years. Construction of these facilities has considerably ramped up in the last two years, with 680 centers currently planned for construction, requiring the equivalent of 186 nuclear power plants. 

Colorado, having been a dream destination for big tech companies, is now home to 56 data centers. The Denver CoreSite center is the latest, right behind a 177-megawatt “hyperscale” facility currently being constructed in Aurora by QTS Realty Trust. 

As for Trump’s pledge, political and financial analysts consider it to be too vague in its current form, as it lacks detail as to how it will require companies to mitigate their use of water. It also fails to acknowledge how data centers will cause a need for more capital improvement projects and infrastructure improvements, nor does it specify who would be responsible for the cost of these essentials. 

Continue to follow the Peak Report, as future installments will focus on the Administration’s enforcement of domestic immigration policy, on election laws, on Trump’s “war on fraud,” and on the state of America’s foreign relations, including updates on the current and pending wars our country is fighting, or is preparing to fight.