Tariff troubles: Voters say Donald Trump’s gone too far on trade as approval rating takes a serious hit

President Trump's approval rating is declining, driven primarily by economic concerns, with only 41% of Americans currently approving of his performance. A majority of Americans express disapproval of his handling of the economy (56%), trade and tariffs (57%), and the cost of living (59%), with 57% believing he has gone too far in raising tariffs on imported goods. This disapproval is reflected in a shift in economic sentiment, with an increasing number of independents rating the economy as "poor."

Analysis

Recent polling data indicates a significant decline in President Trump's approval ratings, primarily driven by mounting economic concerns among Americans. His overall job approval stands at 41%, with 54% disapproving, marking his lowest ratings since late in his first term. Disapproval is particularly acute regarding his economic stewardship, with 56% disapproving of his handling of the economy (versus 37% approval), 57% disapproving of his approach to trade and tariffs (35% approval), and 59% disapproving of his management of the cost of living (32% approval). This contrasts sharply with mid-2020, when his economic approval averaged 49%. A key factor appears to be his administration's trade policies, as 57% of Americans believe he has "gone too far" in raising tariffs on imported goods, which are perceived to be contributing to rising prices and market confusion. This sentiment is reflected in the broader economic outlook, with 72% of Americans now describing the economy as only "fair" or "poor," and the proportion of independents rating the economy as "poor" has increased from 35% in April to 45%. The general sentiment captured by data signals is 'strongly negative' with a 'pessimistic' tone, and a market impact score of 0.6 suggests these developments could introduce moderate volatility as investors digest the implications of widespread economic dissatisfaction and policy uncertainty.

Key Decisions for Investors

• Investors should closely monitor developments in U.S. trade policy and tariff implementations, as these are significant drivers of negative public sentiment and potential market instability.
• Consider reviewing exposure to sectors highly sensitive to consumer spending and import costs, given that rising prices and unfavorable economic perceptions may dampen consumer demand.
• Factor in heightened political risk and its potential impact on economic policy continuity, as declining presidential approval tied to economic dissatisfaction could lead to increased market volatility and shifts in investor positioning.