Once a rallying point for many conservatives, President Donald Trump’s trade agenda is now facing an unexpected headwind from his own party. A recent University of Michigan survey reveals that Republican consumer confidence has tumbled to one of its lowest levels in months as tariffs and trade tensions drive worries over rising costs.
In May, the survey’s overall sentiment index slid to 50.8, down from 52.2 in April. Even more telling, the forward-looking gauge, which measures expectations for the coming months, dropped to 46.5 amid fears of looming job losses and a slowing economy.
Perhaps most striking is the surge in inflation expectations. Republican consumers now anticipate prices climbing by 7.3 percent over the next year – their highest projection since 1981. Longer-term price predictions have also edged up, from 4.4 percent to 4.6 percent, underscoring concerns that tariffs on imports could keep costs elevated.
These pessimistic projections stand in contrast to official figures showing that consumer inflation cooled to 2.3 percent in April – a four-year low – and producer prices eased last month. Yet the impact of higher import duties appears to be weighing on companies’ profit margins and passing through to shoppers at the checkout.
Among self-identified Republicans, the sentiment score plunged from 90.2 in April to 84.2 in May – the weakest reading since last November. Their economic outlook index also fell to a six-month low, dipping from 95.9 to 90.8. The polling was conducted from April 22 through May 13, capturing a period of intense debate over the costs and benefits of trade barriers.
For global citizens and business leaders, these shifts in U.S. consumer mood highlight the far-reaching effects of trade policy. As inflation forecasts soar, entrepreneurs and travelers alike may face higher prices, while thought leaders and changemakers scrutinize the balance between protectionism and open markets.
What’s next? Investors will be watching the Federal Reserve for clues on interest rates, and policymakers for any signs of a truce in trade talks. Until then, the debate over tariffs is proving to be as much about pocketbook concerns as geopolitical strategy.
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Republicans losing confidence in Trump's trade policy: survey
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