Trump economic approval drops to 38% as tariffs hit jobs and inflation rises

Just 38% of Americans approve of President Donald Trump’s handling of the economy, according to a July poll by The Associated Press-NORC Center for Public Affairs [1]. This marks a decline from the end of Trump’s first term, when 50% of adults approved of his economic leadership. The drop in public confidence comes as a series of recent economic indicators—ranging from slowing job gains to rising inflation—challenge the narrative of a “golden age” promised by the administration [2].

Trump’s economic policies, including a rapid rollout of tariffs, tax cuts, and spending adjustments, have significantly reshaped the country’s economic landscape within months of his return to the White House. However, the results thus far have been mixed. A recent jobs report revealed that U.S. employers have lost 37,000 manufacturing jobs since Trump’s tariff campaign began in April [3], contradicting White House claims of an industrial revival. Over the past three months, net hiring has dropped sharply, with job gains totaling just 73,000 in July, 14,000 in June, and 19,000 in May—far below the average of 168,000 jobs added per month in 2024 [4].

Inflation is also showing signs of acceleration. The personal consumption expenditures price index rose 2.6% over the year ending in June, up from 2.2% in April [5]. Prices for imported goods such as appliances and toys saw notable increases in recent weeks, raising concerns about how the burden of Trump’s tariffs will be distributed among consumers. The White House has defended these policies as part of a broader strategy to promote domestic manufacturing and reduce reliance on foreign goods. However, economists warn that the full inflationary effects of the tariffs may not be fully felt until 2026 [6], which could complicate the political landscape for Republicans ahead of the midterm elections.

Meanwhile, the U.S. economy grew at an annual rate of just under 1.3% during the first half of 2025, a sharp decline from the 2.8% growth recorded in the same period the previous year [7]. Senior analysts, including Guy Berger of the Burning Glass Institute, describe the economy as “slogging forward,” with slow job growth and modest overall expansion [8]. Trump, however, remains optimistic, asserting that the “best is yet to come” as his policies take full effect [9].

Adding to the uncertainty is Trump’s public criticism of Federal Reserve Chair Jerome Powell, whom he has accused of stifling economic growth by maintaining high interest rates. Trump has endorsed Fed governors who support rate cuts, arguing that lower rates would make mortgages more affordable and stimulate homebuying [10]. Yet, many economists caution that cutting rates too soon could reignite inflation, especially given the current trajectory of price increases and the looming effects of tariffs.

The debate over Trump’s economic strategy is not new. President Joe Biden, in an address at the Brookings Institution, had previously warned that Trump’s approach of imposing “universal” tariffs could ultimately harm American workers and businesses [11]. Trump, however, appears undeterred, continuing to assert control over both fiscal and trade policies while downplaying concerns over rising costs and slower growth.

As the Trump administration moves forward with its economic agenda, the nation remains divided on its effectiveness. With inflationary pressures mounting and public confidence waning, the administration’s ability to maintain its narrative will depend on whether the anticipated economic boom materializes—and how quickly it does so.

Source: [1] Just 38% approve of Trump’s handling of the economy as promises of ‘golden age’ collide with reality (https://fortune.com/2025/08/02/trumps-economy-38-percent-approval-rating-tariffs-jobs-report/)