A recent survey indicates that Republicans are growing increasingly frustrated with U.S. President Donald Trump’s trade policies, leading to a significant drop in consumer confidence. The University of Michigan’s sentiment index, a key gauge of consumer outlook, plunged to 50.8 in May from April’s 52.2. The forward-looking component of the index dipped even further to 46.5, as fears about potential job losses intensified.
One of the most striking findings from the survey is the surge in public expectations for inflation over the next year, which jumped from 6.5% to 7.3%—the highest level since 1981. This spike reflects widespread concerns that current trade policies might drive prices higher. Long-term inflation expectations also inched up, climbing from 4.4% to 4.6%, with many registered Republicans worried that ongoing tariffs will continue to pressure costs over time.
These heightened inflation expectations come despite official data showing consumer inflation cooling to 2.3% in April—the lowest rate in four years—and a decrease in producer prices last month. Even so, companies are feeling the squeeze on profit margins due to higher import duties.
Among self-identified Republicans, overall sentiment dropped from 90.2 to 84.2, marking the weakest point since last November. Their economic outlook index also fell from 95.9 to 90.8, hitting another six-month low. The polling for the survey was conducted from April 22 through May 13, capturing a period of growing economic uncertainty.
The declining confidence among Republicans highlights a shift in support for the current administration’s trade agenda, raising questions about the future direction of U.S. economic policy.
