Days after defeating the Republican Party in municipal and state elections, Donald Trump began signaling that he would take action to contain food prices. This is what he did on Friday (14) when he reduced customs duties imposed on imports of beef, tomatoes, coffee and bananas.
Most Americans complain of the high cost of living and loss of confidence in the economy and vote for the Democratic Party. By the end of next year, Trump may lose his majority in Congress in the midterm elections.
The Republican rating is considered the lowest since he arrived at the White House. Today, 41.4% of Americans approve of their government, compared to 54.8% who disapprove of it. Upon his inauguration, he received a favorable score of 51.6% to 40%, according to an average of exit polls calculated by Silver Bulletin. Dissatisfaction is highest in terms of inflation (61.7%) and the economy (58.2%).
The University of Michigan’s famous consumer confidence index fell to 50.3 points last November, compared to 71.8 points in the same month of 2024. That is almost as low as the peak of inflation in 2022 and one of the worst levels in nearly 50 years.
The effects of the government shutdown – a record 43-day shutdown due to budget impasses – have also contributed to wear and tear, by hindering the payment of civil servant salaries and social benefits, among other problems.
The inflation rate is about 3% annually. In the case of food items, the percentage is 3.1%, peaking in coffee (18.9%) and beef (14.7%). But prices have remained at an uncomfortable level since the end of the pandemic. Rent, health and public utilities generate complaints and electoral debates.
Eliminating part of the tariff would alleviate famine, a move that could benefit Brazil. As for the American economy, the outcome is more ambiguous.
Activity is expected to slow this year and next, partly due to the uncertainty caused by Trump. The productive sectors follow different paths.
Investment in artificial intelligence and related fields is growing, as is stock market enthusiasm for such companies – which in turn stimulates consumption by the richest fifth of the population. Today’s poor classes face greater difficulty in finding jobs.
Even without a more serious crisis, the Republican is suffering the consequences of his unbridled populism before completing his first year in office. To see whether they will right the wrongs, whether they will redouble their efforts, or whether they will be hampered by a loss of political support.
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