Americans Becoming More Hopeful About Economy Under Trump: Report
The recent trade agreements made by the Trump administration with various nations are contributing to an increase in public confidence regarding the economic outlook, as reported by CNN on Tuesday.
This month, consumer confidence has risen by two points to a level of 97.2, according to the Conference Board’s report on Tuesday. This suggests that Americans’ perceptions of the economy have stabilized following a significant decline in the spring. This decline occurred after President Trump announced extensive tariffs, which raised worries about increasing prices and potential pressure on the labor market, especially after being criticized by much of the media and so-called experts who misjudged the tariffs’ impact on the economy.
Since that time, confidence has somewhat recovered. The administration has consistently postponed the enforcement of those tariffs and has announced trade agreements with seven nations, including China, the United Kingdom, and Japan, according to the report.
Earlier this week, the Trump administration revealed that it had established the framework for a trade agreement with the European Union, one of the largest trading partners of the United States, describing it as the “biggest deal ever made.” However, it is important to note that the survey was conducted in the weeks leading up to July 20 and does not capture public response to the EU trade agreement, as noted by CNN.
“Consumer confidence has stabilized since May, recovering from the sharp drop in April, but it still remains below the elevated levels of last year,” stated Stephanie Guichard, senior economist of global indicators at The Conference Board.
“Tariffs have remained a significant concern and are primarily linked to fears of rising prices,” she further commented.
However, this has not materialized. In fact, prices for several essential commodities, such as food and gasoline, have either decreased or stabilized over the past few months.
“Inflation has improved this year, but indications of renewed price pressures are beginning to surface,” Lauren Goodwin, economist and chief market strategist at New York Life Investments, mentioned in a note to clients on Tuesday, according to CNN.
“Prices of goods in sectors affected by trade policies — including consumer electronics, clothing, and automotive components — have begun to rise,” she remarked. “High tariffs frequently result in noticeable economic distress – disrupting supply chains and dampening demand.”
As the country nears the final moments before Trump’s global trade deadline, tariff revenues have reached an unprecedented $150 billion this year, as reported by Fox Business on Tuesday.
In July, the U.S. gathered nearly $28 billion in customs duties—the highest monthly figure of the year—according to the Treasury Department’s “Customs and Certain Excise Taxes” report. The July statistics, which are based on data up to July 25, have already surpassed June’s prior record of $27 billion.
In January, tariff revenues were around $7.9 billion, but by April, they had more than doubled to $16.3 billion, Fox Business reported.
Treasury Secretary Scott Bessent has indicated that the administration anticipates tariff revenues could surpass $300 billion for the federal government. While the Trump administration emphasizes the increase in tariff revenue, it is U.S. businesses that are bearing the costs—paying those elevated import taxes directly to the federal government.
However, one element of the EU trade agreement is that member countries have consented to acquire hundreds of billions of dollars’ worth of American energy and will invest in liquefied natural gas (LNG), oil, and nuclear fuels from the United States, avoiding reliance on Russia.
The ‘Landmark Trade Deal’ was established between the U.S. and the E.U., wherein the European Union intends to buy $750 billion worth of energy from the U.S. throughout the remainder of Trump’s presidency,” Fox Business highlighted in a separate article.
“These will encompass spot purchases of oil, long-term agreements for LNG and nuclear technology, with the total amount estimated based on Europe’s planned reduction of energy imports from Russia,” the outlet further noted.