How the public felt about tariffs leading up to Liberation Day
President Donald Trump announced sweeping tariffs on “Liberation Day.” Right now, markets are roiling in response.
How do Americans feel? While we don’t know quite yet how Americans are responding to the Liberation Day tariffs just yet, we do have a sense of how the public has felt about tariffs leading up to Wednesday’s announcement.
We at Ipsos are in the field now to get a better understanding of America’s reaction to these new tariffs. But before then, we get to Know the New America by exploring all things tariffs. Here are five charts showing where Americans stand on tariffs and how consumers may react to Trump’s newest tariffs.
- Polarized perceptions. Americans generally feel tariffs will increase prices and tariffs will do more harm than good. Most also don’t feel American workers generally do not come out ahead when the U.S. charges tariffs. But ultimately, perceptions of the tariffs and its impact will likely be driven by partisanship. We saw this same effect with inflation, only with the roles reversed.
- Expect consumer confidence instability. Even before the Liberation Day tariffs, consumer confidence had taken a hit following a temporary post-Trump victory buzz. However, consumer confidence remains slightly higher compared to this time last year. How does the latest round of tariffs impact consumer confidence? We will have to wait and see.
- Many Americans say they’re cutting back. Inflation is a regressive tax. If prices rise due to tariffs, many Americans – particularly those with lower-incomes – say they will cut back or not buy electronics, home repairs, or cars. Conversely, there’s still a large minority of Americans, particularly Republicans, that say tariffs won’t affect their buying behavior. Time will tell.
- Words matter. With a focus on “American made” products, how do Americans respond to this phrase? While support overall remains high for buying American made products overall, Democrats have softened on this term in the past year. Knowing the New America means knowing that in this charged environment words take on new meaning.
- In the long term, will this impact Trump’s credibility? Since the election however, Trump’s handling of prices, the economy, and jobs has been underwater. Will Republicans be able to recover or make up any ground with this group in the lead up to the midterms? Stay tuned.
How will Americans respond to the latest round of tariffs? Well, if past is prologue, then we can expect tariff-related price increases to become highly politicized, much like inflation was during Biden’s presidency. But of course, we don’t know just yet. The next round of consumer confidence will give us the first glimpse into American’s reaction, but time will tell. As brands begin to adjust, understand that words matter in the New America.
Knowing the New America means keeping a pulse on how consumers are making sense of the ever-shifting landscape. We will have to keep listening and learning to respond to consumers’ needs now more than ever.
