Trump Spirals As Americans Reject His Economic Agenda

Trump Spirals As Americans Reject His Economic Agenda

This week, President Trump is deeply underwater with voters on the economy as they continue to feel the impact of higher prices due to his trade war. A Fox News poll found that 84% of voters are extremely or very concerned about inflation and nearly 70% rate economic conditions as only fair or poor. Despite Trump’s protests, it is clear in poll after poll that Americans are rejecting his economic agenda. Meanwhile, the GOP tax plan moving through the Senate will increase costs for working families even more – from health care and groceries to utility bills and higher education.

Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez released the following statement:

“American households are reeling from higher prices, but President Trump doesn’t just ignore their pain; he’s engineering more of it. The uncertainty caused by his erratic trade policy is driving up prices, and his tax bill advancing through Congress will only make things worse for working families. Under this Administration, higher prices are the only certainty we can count on – with no end in sight.”

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

Polling:

• A poll from Fox News found 84% of voters are extremely or very concerned about inflation and nearly 70% score conditions as only fair or poor. Additionally, nearly 60% of voters think tariffs hurt the economy – double the number of voters who think tariffs help.
• A poll from Navigator found that 57% of Americans disapprove of Trump’s handling of the economy, and 55% disapprove of his job as president.
• A Quinnipiac University national poll found that 56% of Americans disapprove of Trump’s handling of the economy. Additionally, the poll found that 53% of Americans disapprove of the GOP tax plan, and a whopping 87% of Americans believe funding for Medicaid should increase or stay the same.
• According to new research from Small Business for America’s Future, nearly 7 in 10 small business owners are opposed to cutting healthcare programs while extending tax breaks for the wealthy.
• New data from KFF reported that the GOP tax bill is viewed unfavorably by a majority of adults (64%), with 79% disapproving of the bill’s plans to defund local hospitals.
• As grocery bills continue to increase, a Washington Post-Ipsos poll conducted earlier this month showed that a majority of Americans (66%) oppose cutting federal funding for food assistance to low-income households.

Economic Indicators:

• The Federal Reserve decided to hold interest rates steady and forecasted Trump’s trade war will raise prices, slow growth, and higher inflation and unemployment—all signs pointing toward stagflation.
• Commerce Department data shows that retail sales fell by 0.9%, which was the steepest monthly decline since January as consumers pull back spending on goods and non-essentials as tariffs start to bite.
• A survey from Business Roundtable of CEOs found business sentiment at the lowest since the depths of the pandemic, with executives sour on future hiring and investment.
• The Federal Reserve Bank of New York Empire State Manufacturing Survey found that the general business conditions index fell seven points to -16.0 with a decline in new orders and shipments and worsened supply availability.
• NAHB/Wells Fargo Housing Market Index showed that builder confidence in the market for newly built single-family homes was 32 in June, down two points from May.
• Privately-owned housing starts in May were at an adjusted annual rate of 1,256,000. This is 9.8 percent below the revised April estimate of 1,392,000 and is 4.6 percent below the May 2024 rate of 1,316,000.

Expert Commentary:

• Joshua Bolten, CEO of the Business Roundtable, warned uncertainty caused by tariffs is causing its Economic Survey Index to fall to its lowest levels since the pandemic: “Driving this quarter’s decline in the Index is broad-based uncertainty, arising substantially from an unpredictable trade policy environment.”
• David Hoag, Fixed Income Portfolio Manager at Capital Group, said of the Fed’s plans to hold interest rates steady: “The longer we have uncertainty — for the consumer, for companies in terms of planning — the more concerned I’ll get about the fundamentals of the economy deteriorating.”
• Heather Long, Chief Economist at Navy Federal Credit Union, responded to weaker retail sales: “Americans bought cars in March ahead of tariffs and stayed away from car dealerships in May. Families are wary of higher prices and are being a lot more selective with where they spend their money… People are hunting for deals and aren’t eager to buy unless they see a good one.”
• Groundwork Collaborative Executive Director Lindsay Owens reacted to this week’s FOMC meeting: “The latest projections make clear that for working families struggling to get by, relief is nowhere in sight. Whether you’re trying to buy a house, get a job, pay off a credit card, or make summer travel plans, life continues to be tougher and more expensive in President Trump’s economy. Instead of working to lower costs for average Americans, his marquee policies – tariffs and the GOP tax plan moving through Congress – are taking us from bad to worse.”
• Groundwork Collaborative Chief of Policy and Advocacy Alex Jacquez spoke with MSNBC about the uncertainty caused by Trump’s tariffs policy: “You’ve used the word, and I’m sure every guest you’ve had on to talk about it has used the word: uncertainty. It’s what the Fed and Jay Powell are looking at. It’s what CEOs are looking at, and it’s what consumers are looking at. If you don’t know what your costs are going to be next month, next week, or next year, it’s going to be impossible for businesses to make the capital expenditures that they need to, say, expand a factory or hire more workers. It’s going to be hard for consumers to make big ticket purchases like cars and houses, and we’ve seen it in the sentiment. CEOs are concerned, consumers are concerned, and businesses [are concerned]. They’re not hiring. They’re not investing.”