New Delhi: A year into United States President Donald Trump’s second term, the American economy has become more divided. A recent study by the Pew Research Centre shows that Americans are worried about rising costs of food, healthcare and housing.
The survey was conducted both online and via telephone from January 20 to 26, involving a total of 8,512 adults to understand their top economic concerns, their views on the future economy, and their perspectives on Trump’s economic policies.
The study reveals that most Americans continue to hold negative views of the US economy, a trend that has persisted for the last six years. About three-in-ten adults (28 per cent) rate the economic conditions in the country as excellent or good, while roughly seven-in-ten (72 per cent) rate them as only fair or poor.
The study found that the views of the economy are largely unchanged from last September (26 per cent rated the economy positively) but are up somewhat from last April, when 23 per cent rated the economy positively. They remain significantly lower than before the start of the COVID-19 pandemic.
The study finds that nearly all of the change in view of the economy since last spring has come from the Republicans or the Republican-leaning independents. At least 49 per cent of Republicans rated the economy positively. Meanwhile, just 10 per cent of Democrats and Democratic leaners rated the economy positively, virtually unchanged since April 2025.
Roughly half of Americans say the effects of the administration’s use of tariffs will be mostly negative for the country (51 per cent) and for them and their families (52 per cent) over the coming years, while others think the effects on both will be either positive or neutral.
Democrats, in general, say the administration’s tariff policies will have mostly negative effects on the country and on them personally. Republicans’ views are more mixed.
Roughly half of Republicans (49 per cent) say the tariffs will benefit the country, while about a third (34 per cent) see mixed positive and negative effects. About two-in-ten (17 per cent) expect the tariffs to negatively affect the country in the coming years.
Among Republicans, 36 per cent say the tariffs will have mostly positive effects on them and their families over the coming years. A slightly larger share (43 per cent) say the personal impact will be a roughly equal mix of positive and negative, and 20 per cent expect the personal impact will be negative.
While Republicans’ views are only modestly different from those they were last summer, they have become more likely to say the long-term effects for both the country and them personally will be mixed.
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Costs of healthcare and housing
The divide in how Americans see the economy is largely driven by Trump’s aggressive trade policies, which put “America First.”
While the current administration boasts of a stronger stock market, more trade deals, including with India, faith among US citizens remains sceptical.
For a majority of families, everyday reality is defined not by FTAs but by a 17 per cent average tariff that keeps the cost of groceries, housing and healthcare high. A worry that is shared by seven-in-ten adults in the United States.
The study reveals that about 71 per cent say they are very concerned about the cost of health care, while 66 per cent say the same about the price of food and consumer goods. Nearly 62 per cent say they are very concerned about the cost of housing.
About half of all adults (51 per cent) say they are very concerned about the price of electricity, while roughly a third (34 per cent) are worried about the price of gasoline. Only 45 per cent are worried about the availability of jobs, and only 20 per cent express concern about the state of the stock market.
How do Americans see the future of the economy?
The Goldman Sachs Research team estimated that the US economy is poised for stronger performance this year than many economists are projecting.
“Our strongest conviction views for 2026 are our above-consensus GDP growth forecast and our below-consensus inflation forecast,” writes David Mericle, chief US economist, in the Goldman Sachs report.
A report by financial firm Deloitte says that despite the pronounced slowdown in consumer spending, the US Gross Domestic Product is expected to grow 1.9 per cent in 2026. By 2030, real GDP growth is expected to shift to its potential rate of about 1.8 per cent, the Deloitte report estimates.
Although the year is poised for higher growth and lower inflation, Americans remain unconvinced and wary that the economic conditions will only get worse.
The study further reveals that about four-in-ten Americans (38 per cent) say they expect the economic conditions to be worse a year from now, a decrease from 46 per cent in September 2025. Fewer (31 per cent) say they expect the economy to be better in a year, while 30 per cent say it will be about the same as today.
A majority of Republicans (57 per cent) expect the economy to be better a year from now. Only 14 per cent expect it to be worse. Meanwhile, just 8 per cent of Democrats now say that they expect the economy to be better a year from now, while 62 per cent expect it to be worse.
About half of Americans (52 per cent) say that since taking office, Trump’s economic policies have made economic conditions in the country worse. Another 28 per cent say his policies have made the economy better, while 19 per cent say they have not had much of an effect. Views of the administration’s tariff increases have been relatively stable since last April, when President Donald Trump first unveiled his far-reaching tariff policy.
(Edited by Insha Jalil Waziri)