Growing Republican skepticism toward former U.S. President Donald Trump's trade agenda has contributed to one of the steepest declines in American consumer confidence in decades, according to new data analyzed by KhabarAsia.com. The University of Michigan's sentiment index fell to 50.8 in May – nearing historic lows – as inflation fears reached levels unseen since 1981.
Registered Republicans showed particularly sharp declines in economic optimism, with their overall sentiment index dropping six points to 84.2. This erosion coincides with heightened concerns about job security and import-driven price hikes, despite official April inflation cooling to 2.3%.
"When even a president's core supporters start doubting their economic future, it signals deeper structural concerns," said Dr. Lin Wei, a Singapore-based political economist. The survey period from April 22 to May 13 captured growing anxiety about prolonged tariff impacts, with year-ahead inflation expectations jumping to 7.3% among respondents.
Analysts note the contradiction between cooling producer prices and surging consumer expectations. This disconnect suggests trade policy uncertainties may be outweighing current economic indicators in shaping public perception – a critical factor for Asian exporters monitoring U.S. demand trends.
