Trump’s economic gamble: Tariff wars drag approval to new low - Can he win voters back?

Trump's approval rating falls to new low six months

After returning to office, President Donald Trump has taken full control of US economic policy, reshaping the country’s trade, manufacturing, energy, and tax systems through aggressive tariff increases and sweeping tax and spending reforms.

Trump has played the blame game for the flaws in the world's hottest economies. when the job report showed dramatic slowdown in hiring, he fired data chief  the head of the agency that published it.

He also put the blame of Joe Biden and continues to berate the Federal Reserve for what he considers too-high interest rates.

Commerce Secretary Howard Lutnick declared, “The Trump Economy has officially arrived.” Politically, his control over economic policy was solidified with the passage of the “One Big Beautiful Bill” tax-and-spending law and the latest round of global tariffs.

Next year, Trump’s economic record will be put to the test in the midterm elections. The question now is whether his tariff-driven approach to global trade is actually benefiting him at home in the US or not.

Trump's approval rating

Polls show that many voters are dissatisfied with Trump’s tariffs and tax policies, potentially giving Democrats an opportunity in the upcoming midterms.

President Donald Trump’s approval rating has fallen to its lowest point in his second term, according to a new Reuters/Ipsos poll, as Americans express mixed views on his handling of the economy and immigration.

According to a recent Fox News survey, around 62% of voters disapprove of Trump’s approach to tariffs, 58% oppose his tax and spending bill, and 55% are dissatisfied with his overall handling of the economy.

The July jobs report showed the slowest employment growth since the pandemic. The GDP declined in first quarter however, it bounced back in the second due to trade-related shifts, overall growth in the first half of 2025 was about half of last year’s pace.

Consumers are pulling back amid uncertainty over trade tensions. However, unemployment remains low, and so far, fears of sharp price increases due to tariffs have not materialized.

After months of threats and policy reversals, Trump has announced yet another round of tariff hikes this week, raising tax rates on all countries trading with the U.S.

While the import taxes are generating billions in revenue for the government, the long-term impact on the economy is still uncertain. Critics argue that American consumers and businesses will ultimately bear the cost.

Cost of living 

Prices soared under the Biden administration, driving up the cost of living an issue that remains sensitive for voters.

There were some signs in June’s price data that tariffs are starting to nudge prices higher for products like furniture and appliances.

Still, the White House has a decent story to tell, according to Republican strategist Alex Conant. “I would certainly take this economy over two or three years ago,” he said. “There are two things that crush a president, inflation or unemployment. Right now both are low.”

Federal Reserve Chair Jerome Powell has pointed to the risk that new tariffs could reignite inflation, citing it as a reason for keeping interest rates steady much to Trump’s frustration.

The clash between Trump and Powell over interest rates continues, with the president pushing hard for cuts. On Friday, he even urged the Fed’s board to “assume control” if Powell fails to deliver a rate reduction.

Edge for Democrats 

Democrats see opportunities to go after Trump on his tax-and-spending legislation as well as his tariffs. The measure includes new breaks for tips and overtime pay – but also steep cuts to health programs that will hurt many low-income Americans. “Our summer’s all about Cancel The Cuts,” former House Speaker Nancy Pelosi said on social media.

“I’ll be looking at how House and Senate Republicans fare back home as they try to sell the recent budget bill,” said Democratic strategist Jim Manley. “If you look at the polling, Democrats have to focus on his handling of the economy, because Americans are not happy.”

With tariffs largely in place, the White House in August plans to start promoting its tax law. State and local officials were at the White House this week getting briefed on the legislation, one official said. Another White House insider said Trump was expected to hit the road as part of the effort.