4/26/2025–|Last update: 26/4/202507:45 PM (Mecca time)
Consumer confidence in the United States has witnessed a sharp decline in one of its lowest levels recorded historically, amid increasing concerns about the economic repercussions of the trade war launched by US President Donald Trump, at a time when long -term inflation forecasts recorded their highest levels since 1991.
A PC network in cooperation with the Epsos Foundation showed that 7 out of 10 Americans believe that the Trump -led customs campaign will lead to high inflation, which represents a strong blow to the Republican President who made the fight against inflation the focus of his last election campaign.
In the same context, the average polls of the New York Times showed a continuous decrease in the popularity of Trump since he took office, as it was 45%support. Most of the participants in another poll conducted by the “New York Times/Sina” also expressed their rejection of Trump’s attempts to strengthen the authorities of the executive.
The Michigan University of Consumer confidence has decreased by 8% to 52.2 points, its lowest level since July 2022. The expectations index decreased by 32% since January, recording the largest decline in 3 months since the stagnation of 1990.
The main factors behind the retreat
- Customs duties: The wide customs duties imposed by the administration of President Donald Trump led to unrest in the global markets and increased fears of inflation, which negatively affected consumer confidence.
- Inflationes: annual inflation expectations increased to 6.5%, which is the highest level since 1981, which increased anxiety about the purchasing power of consumers.
- Anxiety from the labor market: Nearly two -thirds of consumers expressed their expectations for high unemployment rates during the next year, which is twice the percentage that expected this 6 months ago.
- Decreased income expectations: Consumers have expressed increased pessimism about their future income growth, which may reduce consumer spending.
Experts warn that the continued decline in consumer confidence may lead to a wider economic slowdown, especially if it reduces consumer spending. Fears of economic recession are increasing if no measures are taken to reduce trade tensions and stabilize economic policies.
Markets interact
On the market level, the dollar index was heading towards registering the worst performance in the first 100 days of an American presidency since the era of President Richard Nixon, when America abandoned the gold base. However, US Treasury bonds recorded a rise with the support of investors with the possibility of hiding trade tension with China, while stocks have witnessed some improvement.
Trump had started his trade war against China, warning Beijing against responding, but Chinese President Xi Jinping ignored these warnings and stated against counter -fees. After Trump’s attempts to invite Xi to negotiate, China initiated a limited cancellation of some customs duties.
Wu Shinbo, director of the American Studies Center at the University of Fodan and advisor to the Chinese Ministry of Foreign Affairs, said the Trump administration has offended the ability of the American economic pressure. “The prevailing novel within the Trump team was that the Chinese economy is in a weak position, and therefore the use of the customs duties paper will push China to surrender. But the surprise is that China did not appear as they expected.”
New legal crises
In a related context, Trump faces a judicial escalation with the increasing judicial rulings, which are some of its policies illegal, especially in the file of deporting immigrants without obligatory legal procedures.
In a remarkable development, the FBI arrested a local judge in Wisconsin on charges of obstructing the arrest of a migrant inside the courtroom, which led to protests before the Federal Court in Meloyki.
“The Trump administration continues a dangerous pattern of discourse that attacks the judiciary and tries to undermine it at all levels.”
