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The Independent Center’s polling prior to the election clearly showed that affordability concerns were at the top of voters’ minds as they headed to the polls.
Shortly after Donald Trump was elected to the Presidency, Wall Street stocks soared to record highs, and the US Dollar jumped. However, as fears of a trade war with Mexico, Canada, the European Union, and other countries grow, these short-term gains are giving way to uncertainty and concern.
Key Facts
Recent weeks have been tumultuous for the American economy. The American tech behemoth Nvidia’s stock tumbled by 17% after the Chinese chatbot DeepSeek turned heads due to its ability to produce a powerful AI model at a significantly lower cost than competitors. This fluctuation is just one aspect of broader chaos, as the new administration ushered in a flurry of executive orders and tariff threats.
- Consumer sentiment fell about 5% in the University of Michigan’s preliminary February survey of consumers to its lowest reading since July 2024.
- Inflation expectations jumped from 3.3% to 4.3%, marking the highest reading since November 2024.
- According to Stanford economist Steven J. Davis: “Uncertainty itself is harmful to business activity. When rules change, even in harmful ways, businesses can typically adapt. But when it isn’t clear what the rules will be, businesses can find themselves in limbo.”
What this means for independents
The Independent Center’s polling prior to the election clearly showed that affordability concerns were at the top of voters’ minds as they headed to the polls. Trump’s promise to “immediately bring prices down, starting day one” is a major reason why he achieved such a resounding electoral victory. Many people realistically understood that the problem of inflation and affordability would take longer than that, but now it’s appearing that some of these policies might be making the issue worse.
- Experts are predicting that the proposed tariffs will cause the cost of new cars to rise by around $3,000 on average.
- Because of steel and aluminum tariffs, auto insurance is likely to go up for everyday Americans.
- Oil changes might be the first price change that we’ll notice, with the cost of the average service likely to go over $100.
- Over 99% of shoes in the United States are imported, so it’s natural to assume price increases with these items as well.
What’s next
President Trump put a temporary hold on the tariffs on Canada and Mexico after reaching a tentative agreement with the leaders of the two states. But the new uncertainty in the market is making economic growth and innovation extremely difficult. The lack of clarity about tariffs and other policies could hurt hiring and investing, and these in turn will have major repercussions on the American consumer. Americans need to see a clear and simple strategy. Furthermore, the public needs to believe, and know, that there is a point to all this chaos beyond political point scoring.
Independents hold the power, after all.
