Consumers Blame Trump as Weak 2026 Economy Takes Shape

Consumers Blame Trump as Weak 2026 Economy Takes Shape

As the first real snapshot of the 2026 economy comes into view, Americans are bracing for tougher days ahead. While the White House buries its head in the sand and tries to deny reality, families know the truth: the gap between the administration’s rhetoric and the pain Americans feel in the checkout line keeps getting wider.

Consumer sentiment is stuck near historic lows, down sharply from a year ago. With layoffs accelerating, job openings disappearing, and prices climbing due to Trump’s tariffs and corporate profiteering, families are preparing for hard times ahead.

More than 90% of Americans are worried about health care costs, including roughly 60% of Republicans who report being very concerned. Financial anxiety extends well beyond medical bills, with 92% concerned about the cost of food and consumer goods, 89% about housing, and 85% about electricity. Americans know who to blame. A majority now say Trump’s economic agenda has made conditions worse.

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 sentiment remains near historic lows under Trump. February’s University of Michigan Consumer Sentiment reading of 57.3 edged up slightly from January, but is still more than 10% from last year’s reading. Households continue to express concern about high prices and the labor market. The modest gains in consumer sentiment were driven by consumers with large stock portfolios, while sentiment among households without stock holdings remains low. Inflation expectations are well above the Fed’s target, signaling growing skepticism that Trump’s economic agenda will deliver price relief.
• Trump promised job growth but delivered a sluggish labor market. According to the Bureau of Labor Statistics, job openings fell far below expectations to 6.5 million in December. Initial unemployment claims climbed to 231,000 last week, up from 209,000 and above expectations. Together, these numbers point to weaker labor demand and fewer opportunities for workers.
  • The economy added just 22,000 private sector jobs in January, roughly half of expectations and well below December’s numbers. According to ADP data, hiring was once again concentrated in health care, while manufacturing and professional services shed 8,000 and 57,000 jobs, respectively.
  • According to a report from Challenger, Gray & Christmas, employers are cutting workers at the fastest January pace since 2009, while hiring has fallen well below expectations. The labor market is weakening under his watch.
    • Employers announced nearly 110,000 layoffs in January, marking a 118% increase from last year and a 205% jump from December.
• Trump’s tariffs reversed falling goods prices. Prices were easing before Trump took office, but his tariff policy caused a change in course and abruptly pushed prices higher, according to Harvard Business School. The study also found that Trump’s tariffs have increased prices on imports by nearly 7% relative to their pre-Liberation Day trend.
  • Online prices also jumped at a record pace in January, based on the Adobe Digital Price Index. According to UBS, this is likely due to rising prices in tariff-heavy goods like electronics and appliances, as Trump’s tariffs are flowing straight to consumers.
• Trump now has the lowest approval rating of his second term. Quinnipiac polling puts his approval at 37%, down from 40% just two weeks ago. Voters are increasingly unhappy with Trump’s handling of the economy, with disapproval rising to 56% from 53% two weeks ago.

Expert Commentary:

• ‘Hope’ has been word of the year in the Transportation Equipment industry. Unfortunately, all the hope in the world has not materialized into order activity in 2025 or the first half of 2026. Across the board, buyers continue to stand on the sidelines. As we enter 2026, every conversation revolves around hope that the second half of 2026 starts the turnaround. It’s hard to set strategy on hope, but thanks to the uncertainty brought about by this administration, here we are.” -ISM Manufacturing survey respondent in the transportation equipment industry.
• “Confused and uninformed tariff policies continue to plague small companies, making long-term planning pointless. Companies are not making capital commitments beyond 30 days.” –ISM Manufacturing survey respondent in the fabricated metal products industry.
• “There are decades-long structural changes that present challenges for today’s middle-class families. Most notably, housing costs have increased sharply for both homebuyers and renters and have far surpassed wage gains in almost every region of the country. Moreover, the cost of education, health care, elder care, and childcare has risen by more than wages; household debt has also risen; and intergenerational mobility has declined.” -Federal Reserve Governor Lisa Cook.
• “Weak and highly concentrated growth in the labor market translates to weaker growth across the economy […] When the labor market is adding fewer jobs (and losing them in some sectors), the economy is less dynamic. For households, this may mean fewer opportunities for professional advancement and pay raises. And for those out of work, a more difficult time finding a replacement job.” -Elizabeth Renter, Chief Economist at NerdWallet.
• “Consumer-facing companies are increasingly reporting a challenging environment, with demand for services falling in January having nearly stalled in December, reflecting low levels of consumer sentiment and cost of living pressures […] Inflationary pressures in the service sector meanwhile remain elevated, blamed on the pass though of tariff related price increases and wage growth.” -Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.