Former President Donald Trump has been threatening significant tariffs on Canada and Mexico, America’s two biggest trading partners, for more than a month. The time for reckoning has now come. The president runs the danger of raising prices for consumers and businesses in the coming months as a result of his broad tariffs, which also target China. The US economy, which Americans claim to care about the most, could be weakened as a result.
Trump has long argued that foreign countries, especially China, have exploited American companies and that the United States has lost out on international trade agreements. According to his government, these tariffs will safeguard homegrown businesses, generate employment, and return manufacturing to the United States. Critics counter that these policies will spur economic retribution from trading partners, raise inflation, and make goods more expensive for American consumers.
What Impact Will Tariffs Have on Voter Attitude and Inflation?
Voters’ top concerns in November of last year were inflation and the economy. Trump took advantage of people’s lingering resentment over skyrocketing costs from the beginning of Biden’s administration. His government has been unable to significantly reduce inflation, despite having effectively fulfilled many of his campaign pledges, including reducing federal positions, strengthening immigration enforcement, and limiting gender recognition.
The cost of eggs is a continual reminder of this difficulty. Even though the bird flu-related mass killing of chickens has contributed, people are nonetheless concerned about inflation because of the rising price of this staple. The US stock market saw its largest decline of the year on Monday after Trump announced that 25% tariffs on goods made in Canada and Mexico would go into effect. With taxes on Mexican food imports likely raising supermarket prices for Americans, this early response raises the possibility that his trade policies could cause economic instability.
Because higher import prices would eventually trickle down to regular consumers, economists are worried that these taxes could cause the economy to slow down. Price increases for necessities could result from more strain on supply chains, which are still recuperating from the pandemic’s interruptions.
What Are The Views Of The Public Regarding Trump's Economic Priorities?
According to a CBS poll last week, 82% of Americans think the president should give the economy “high” priority. On tariffs, however, only 30% agreed. Additionally, only 36% of respondents think Trump is giving the economy “a lot of priority,” whereas 68% think he is putting a lot of emphasis on tariffs. Just 29% of respondents believe that Trump has inflation as a major priority.
60% of Americans still have pessimistic opinions on the economy, calling it “bad.” This percentage is about the same as the 58% from the previous year. Trump’s overall job approval rating is 51%, which is also the public’s approval rate for his economic management. This suggests that, similar to previous presidents, Trump’s political future might eventually depend on how well the economy is doing.
Trump’s protectionist trade policies may appeal to his supporters, but their long-term repercussions are yet unknown, according to some observers. Tariffs frequently result in trade wars, which can hinder rather than promote economic growth, as history has demonstrated. Will Americans be able to tolerate temporary price increases in exchange for the potential for long-term economic benefits?
How long will Trump's honeymoon last?
The early “honeymoon period” of Trump’s presidency is still paying off, according to Clifford Young, president of public relations at polling firm Ipsos. A big economic slump might drastically limit this grace period, which normally lasts about six months.
Trump claims that his tariffs will boost investment, raise tax revenue, and improve US manufacturing. Many economists caution, nevertheless, that these policies will probably result in higher consumer costs in a comparable amount of time. Trump will have the chance to argue that short-term economic hardship will lead to long-term benefits during a primetime address to a joint session of Congress on Tuesday night.
“I’m curious to see how he connects the economy to global tariffs, government efficiency, and even immigration,” Young added. “Ideally, he would argue that the ultimate goal of all these various actions he is taking is to improve the economy.”
Some corporate executives are still dubious in spite of this. These tariffs have the potential to drastically raise corporate expenses and result in job losses in important industries, according to the National Retail Federation, which represents many of the biggest retailers in the nation.
Does Trump's Economic Strategy Have Any Concerns?
Public skepticism about the economy appears to be growing, according to certain statistics. The biggest decline in consumer confidence since August 2021 was found in a recent survey conducted by the Conference Board, a nonpartisan economic research organization. Concerns about inflation and the disruptions to the economy brought on by higher tariffs are the main causes of the fall.
The Consumer Price Index, which measures inflation, increased by 3% in January, reaching a six-month high. Sixty-two percent of Americans said that costs have been “going up” in recent weeks, according to the CBS poll. Although they admit that these initiatives take time to produce effects, White House officials contend that Trump’s initiatives to reduce government spending, loosen regulations, and increase energy output would ultimately result in reduced prices.
How Is Affordability Being Addressed by the Trump Administration?
Treasury Secretary Scott Bessent said in a Sunday television appearance that Trump intends to designate an “affordability tsar” to address issues related to living expenses.
Bessent added, “President Trump said that he’ll own the economy in six or twelve months,” implying that the situation of the economy now is a result of former President Joe Biden’s actions. “However, I can assure you that we are making daily efforts to lower these prices.”
Trump used Tuesday’s speech to reassure people and lay out his economic plan, even though it was not a formal State of the Union address. His administration has also alluded to other measures, like tax breaks and incentives for home manufacturing, that are intended to lower costs for Americans in the working class.
Are Democrats Able to Take the Lead?
Democrats, who have had difficulty coming up with a coherent strategy to challenge Trump’s administration, may have an opening due to his trade policies. Their selection of Senator Elissa Slotkin from Michigan, an industrial Midwestern state that depends heavily on trade, as the rebuttal speaker, implies that they want to concentrate on economic concerns.
Trump is currently at the height of his political influence, and he is using it to change US trade policy, a topic that has been at the heart of his political ideology for more than 40 years.
But history demonstrates that many presidents before him have been overthrown by public discontent with the economy. The White House has little control over all financial disturbances, but Trump is taking a risk with his tariff decision. Whether this action strengthens his legacy or jeopardizes his second term before it even starts will ultimately be determined by the American people.
The future of Trump’s economic ideas and his presidency are still up in the air. Will Americans accept the price of his tariff gamble, or will they support his protectionist trade vision? We’ll find out in time.
