Groundwork’s Jacquez says Hardworking Americans are Struggling Under Strain of Trump’s Broken Promises

Groundwork’s Jacquez says Hardworking Americans are Struggling Under Strain of Trump’s Broken Promises

This week, families across the country began receiving notices in the mail warning that their health insurance premiums are set to quadruple while Republicans in Congress double down on their refusal to lift a finger to provide relief. At the same time, President Trump continues to wage chaotic trade wars, implementing new tariffs on furniture and kitchen cabinets while threatening additional tariffs on imports from China that will hike prices even further for American consumers, homebuilders, and manufacturers.

A recent Goldman Sachs analysis shows that consumers will absorb as much as 55% of the costs from Trump’s tariffs and new polling shows that households are feeling the strain: 57% of Americans report that the economy is worsening, the highest percentage in over a year.

Alex Jacquez, Chief of Policy and Advocacy at Groundwork Collaborative, shared his reaction:

“President Trump promised to lower costs, but prices on everyday essentials are soaring. He vowed to bring back manufacturing, yet factories are closing and jobs are vanishing. He said other countries would pay for his tariffs, but American consumers are footing the bill. In Trump’s economy, hardworking Americans are struggling under the strain of his broken promises.”

Email press@groundworkcollaborative.org to speak with a Groundwork expert about President Trump’s economic mismanagement.

This week in the Trump Slump, new polling and economic indicators continue to show that President Trump’s actions are deeply unpopular, hurting the economy, and harming America’s workers.

Polling and Economic Indicators on Trump’s Handling of the Economy:

• Consumer spending is cooling. Retail sales excluding autos likely rose just 0.5% in September, down from 0.7% in August, with most of the gain driven by higher prices rather than stronger demand, according to an estimate from the Chicago Federal Reserve, as official Census data is delayed due to the government shutdown. The slowdown highlights growing caution among households as tariffs raise prices and job growth weakens.
  • Spending is increasingly concentrated among higher-income households, buoyed by stock market and housing gains. September spending grew 2.6% among higher earners, compared with 1.6% for middle-income and just 0.6% for lower-income households, according to the Bank of America Institute—evidence of a widening divide between everyday Americans who are struggling to get by and the wealthy winners in Trump’s economy.

• Tariffs are hitting consumers where it hurts. Prices for imported goods are up 6.5% from their pre-Liberation Day trend, according to Harvard’s Pricing Lab, and goods inflation is once again climbing after months of decline.
  • Additionally, new tariffs on cabinets, vanities, and furniture went into effect this week, raising costs on home building at a time when the real estate market is stalled.
  • Trump’s threat to impose 100% tariffs on China starting November 1 will make things even worse by disrupting supply chains, raising prices for consumers, and hammering U.S. manufacturers who rely on Chinese inputs.

• Small business optimism is slipping. The NFIB Small Business Optimism Index fell 2.0 points in September to 98.8. Meanwhile, uncertainty is climbing: the NFIB Uncertainty Index jumped 7 points to 100, marking one of the highest readings in more than five decades.
  • In September, 24% of small business owners reported raising their average selling prices—up three points from August—and 31% plan to hike prices in the next three months, a five-point increase. The steady rise underscores the effects of Trump’s tariffs and broader mismanagement of the economy that is driving up prices for consumers.

• Far from creating a manufacturing renaissance, Trump’s policies are actively harming American manufacturers: Economic activity in the sector contracted for the seventh straight month. Capacity utilization remains below its historical average, and manufacturing jobs have plunged off a cliff, with 42,000 positions vanishing since Trump’s “Liberation Day” tariff announcement in April.
  • Manufacturing activity in the Federal Reserve Bank of Philadelphia’s region plunged sharply in October, and 49% of firms reported rising input costs—and none reported declines.

• Skyrocketing health care prices remain a top concern for American families. Nearly three-quarters of voters (72%) are worried about rising health insurance premiums this year, according to new polling from Groundwork Collaborative and Data for Progress. For the third consecutive week, a majority of voters say Democrats should keep negotiating on government funding until Congress takes action to prevent looming health care price hikes.

Additional Indicators:

• Auto loan delinquencies are rising. Repossessions rose to their highest level since 2009, with 1.7 million cars seized last year, while 6.5% of subprime borrowers are now over 60 days late on payments. Economists warn the spike in defaults is an early warning sign that household finances are cracking under higher prices and loan costs.

• Car prices are breaking records. The average new vehicle price hit $50,080 in September—the first time it’s ever topped $50,000, according to a report from Kelley Blue Book. Prices are up 2.1% from August and 3.6% over the past year, marking the biggest annual increase since spring 2023, amidst the global chip shortage.

• 57% of Americans say the U.S. economy is getting worse, the highest share in more than a year, a new YouGov poll found.
  • The same poll found that just 38% of Republicans say the economy is getting better, down from 56% in July.

• Tariffs are driving up costs and prices. Across industries, businesses are struggling under Trump’s tariffs and raising prices for consumers to protect their profit margins, according to the Federal Reserve’s Beige Book.
  • An auto parts importer on Long Island, New York said new tariffs on goods from India have been “particularly steep,” while businesses in Philadelphia reported continued cost pressures from tariffs, insurance, health care, and utilities.

Expert Commentary:

• Erin Keating, Executive Analyst at Cox Automotive, reacted to record-breaking car prices: “ [M]any price-conscious buyers are sidelined or cruising in the used-vehicle market. Today’s auto market is being driven by wealthier households who have access to capital, good loan rates, and are propping up the higher end of the market. Tariffs have introduced new cost pressure to the business.”

• Moody’s Chief Economist Mark Zandi spoke about the struggles facing lower-income households: “They have debt: They have auto debt, they have student loan debt, they may, if they’re lucky, have a mortgage, but they’re gonna struggle, and their world is going to descend into recession pretty quickly…”

• Lindsay Owens, Executive Director at Groundwork Collaborative, explained the impact of the impending expiration of the Affordable Care Act’s enhanced premium tax credits: “We’re not talking about little, small increases — we’re talking about more than doubling for 20 million Americans. And I know many Americans are already feeling like their health care premiums are too high, so more than doubling is really punishing.”