Consumer confidence in the U.S. economy has improved following recent trade agreements reached by the Trump administration, CNN reported Tuesday. The Conference Board’s consumer confidence index rose by two points this month to 97.2, signaling a stabilization after a sharp decline earlier in the year. That decline followed President Trump’s announcement of broad tariffs, which initially raised fears about inflation and labor market strain. Critics warned of rising prices, but those concerns have not fully materialized.
The administration has since delayed tariff implementations and secured trade deals with seven countries, including China, the UK, and Japan. While the recent U.S.-EU trade deal — touted as the “biggest deal ever made” — was finalized after the survey period, it may further strengthen sentiment. The agreement includes $750 billion in planned European purchases of American energy, such as LNG, oil, and nuclear fuels, as Europe seeks alternatives to Russian energy.
Despite early warnings, inflation has remained in check, with prices for key commodities stabilizing or even falling. However, prices in some trade-sensitive categories, like electronics and auto parts, are beginning to rise. These increases suggest that while the overall price environment is steady, specific sectors tied closely to international trade are experiencing pressure.
Tariff revenues have surged significantly, reaching $28 billion in July alone, up from $7.9 billion in January. The Treasury Department reports that these revenues are expected to exceed $300 billion this year. While this boosts federal income, it also underscores that U.S. businesses are bearing the brunt of higher import taxes.
Overall, recent trade policies appear to be bolstering economic confidence, even as experts remain cautious about longer-term risks. Concerns persist around potential supply chain disruptions and renewed inflationary pressures. Still, for now, Americans’ outlook on the economy seems to be improving, reflecting optimism tied to strong trade deals and manageable price trends.
