Americans Express Concern Over Trump’s Economic Policies Amid Market Volatility
A recent Reuters/Ipsos poll reveals that a majority of Americans harbor reservations about President Donald Trump’s economic strategies, particularly his aggressive use of tariffs, which many perceive as erratic and potentially detrimental to the nation’s economic stability. The poll, conducted over two days and concluding on Wednesday, indicates that 57% of respondents, including a significant one-third of Republicans, believe Trump’s policies are inconsistent and unpredictable. These concerns are amplified by the ongoing trade war initiated by Trump’s imposition of tariffs on key trading partners, which has sent ripples of uncertainty through stock markets.
The survey underscores a disconnect between Trump’s economic approach and the priorities of many Americans. While Trump has emphasized combating high prices, the poll suggests that his policies are, in fact, exacerbating inflationary pressures, fueling anxieties about the rising cost of living. This sentiment is reflected in the low approval rating Trump receives on the issue of cost of living, with only 32% of respondents expressing satisfaction with his performance in this area.
The imposition of tariffs on allies like Canada and Mexico, coupled with Trump’s reluctance to dismiss the possibility of a recession, has unsettled U.S. markets. The S&P 500, a benchmark for the overall market, has witnessed a substantial decline of over $3 trillion in value since reaching its peak last month. The White House has responded by suggesting that short-term economic discomfort may be a necessary consequence of Trump’s trade agenda, which aims to revitalize domestic manufacturing.
However, Wall Street has been particularly rattled by Trump’s abrupt policy shifts. A recent example involves Trump’s initial announcement of increased tariffs on Canadian metals, which triggered a stock market dip, followed by a swift reversal of the decision after Canada conceded to certain demands. This whipsaw effect has contributed to a sense of instability and unpredictability in the market.
Overall, Trump’s job approval rating remains steady at 44%, unchanged from a previous Reuters/Ipsos poll conducted earlier in the month. However, the poll reveals widespread concerns about the potential impact of higher tariffs on everyday expenses. A significant majority of respondents, 70%, including nine out of ten Democrats and six out of ten Republicans, anticipate that increased tariffs will lead to higher prices for groceries and other essential goods.
Throughout his career, Trump has frequently touted the strength of the stock market as a key indicator of economic prosperity. However, since returning to office, he has adopted a more cautious tone, acknowledging that market fluctuations are inevitable. "Markets are going to go up and they’re going to go down. We have to rebuild our country," Trump stated recently, signaling a departure from his previous emphasis on market performance.
This shift contrasts sharply with Trump’s pronouncements during his first term, when he celebrated significant milestones in the stock market and attributed them to his policies. A White House spokeswoman has urged patience, describing the market’s performance as a "snapshot of a moment in time" and expressing confidence that Trump’s policies will ultimately benefit both Wall Street and Main Street, as they did during his first term.
Inflation emerges as the primary concern among respondents to the poll, with six in ten identifying it as the issue that Trump should prioritize. This far surpasses concerns about other presidential priorities, such as reducing the size of government, addressing immigration, and combating crime.
Several analysts have issued recession warnings, painting a bleak picture of the economic outlook. Investment bank J.P. Morgan estimates the risk of a U.S. recession this year at approximately 40%, and considers an economic downturn even more likely if Trump proceeds with another planned wave of tariffs in April.
The White House has already implemented increased tariffs on Chinese-made goods and recently imposed taxes on a range of imported automotive and tractor parts, construction materials, and machinery parts, many of which are sourced from Canada and Mexico. In response, Canada and the European Union have pledged to retaliate with their own trade barriers on U.S. products.
Analysts anticipate that inflation, which has already surged, is likely to be further exacerbated by the implementation of tariffs.
Despite the prevailing economic uncertainty, Republicans on Capitol Hill and Trump’s supporters continue to express support for his economic vision. Senator Roger Marshall believes that the market was "overvalued" and emphasizes the importance of factors beyond the stock market, such as lowering interest rates and attracting manufacturing jobs.
Other Republicans acknowledge the concerns stemming from market declines, particularly among retirees and those nearing retirement. Senator Shelley Moore Capito suggests that Trump should be more sensitive to the impact of market fluctuations on retirement savings accounts.
Democratic Senator Richard Blumenthal views the sell-off from a different perspective, highlighting its potential impact on everyday investors who may not have the financial resources to absorb significant losses.
The poll reveals a stark partisan divide in perceptions of Trump’s economic policies. Nearly 80% of Republicans agree with the statement that Trump’s actions on the economy will ultimately pay off in the long run, indicating a level of faith in his policies despite short-term anxieties. In contrast, only 41% of respondents overall, and a mere 5% of Democrats, share this belief.
Americans for Responsible Growth, an advocacy group representing Democratic state treasurers, has criticized Trump’s approach as "chaotic" and detrimental to investors across the nation. The group’s executive director, Dave Wallack, argues that Trump’s policies have resulted in higher prices, fewer choices, and increased uncertainty for consumers and businesses.
The poll, which surveyed 1,422 U.S. adults nationwide, has a margin of error of 3 percentage points.
