April 2025 Survey Shows Decline in U.S. Economic Confidence Amid Market Turmoil

In April 2025, a Pew Research Center survey revealed that only 23% of Americans rated the national economy as excellent or good, while 76% viewed it as only fair or poor. This survey, conducted from April 7 to 13, also indicated that 45% of respondents expected the economy to worsen over the next year, up from 37% in February.

The survey was conducted shortly after President Donald Trump's April 2 announcement of new tariffs, which led to significant stock market volatility. On that day, President Trump declared a 10% tariff on all imported goods, with higher "reciprocal" tariffs targeting countries such as China, Japan, and European nations. This move marked a significant departure from decades of free-trade policy and was intended to address trade imbalances.

The market response was swift and negative. On April 3, the Dow Jones Industrial Average fell nearly 1,700 points, the S&P 500 dropped almost 5%, and the Nasdaq Composite tumbled by 6%, marking some of the worst single-day performances since the COVID-19 pandemic in 2020. This volatility continued, with the S&P 500 losing 4.6% in the first quarter of 2025, marking its worst quarter since 2022.

The Pew survey also highlighted partisan differences in economic perceptions. Among Republicans and Republican-leaning independents, 36% rated the economy as excellent or good, up from 18% in February. In contrast, only 11% of Democrats and Democratic-leaning independents viewed the economy positively, a decline from 30% in February.

Economic concerns were prevalent among respondents. Sixty-six percent were very concerned about the price of food and consumer goods, 61% about housing costs, and 46% about energy prices. These concerns have been persistent, with slight declines since the previous year, primarily among Republicans.

Public confidence in President Trump's economic decisions was also low. The survey found that 55% of Americans lacked confidence in his economic decisions, and 59% disapproved of his tariffs on imported goods. This disapproval was more pronounced among Democrats, with 87% believing his policies worsened economic conditions, compared to 19% of Republicans.

The combination of negative economic perceptions and market volatility has several implications. Increased economic pessimism may lead to reduced consumer spending, potentially slowing economic growth. Market instability can deter both domestic and foreign investments, affecting business expansion and job creation. Economic dissatisfaction can also influence voter behavior, impacting upcoming elections and policy decisions.

While the U.S. has experienced market volatility due to tariff announcements in the past, the scale and rapidity of the April 2025 market decline were unprecedented. The 2025 stock market crash was the largest since the COVID-19 pandemic, highlighting the significant impact of trade policies on global markets.

In summary, the Pew Research Center's April 2025 survey underscores a significant decline in public confidence regarding the U.S. economy, coinciding with President Trump's announcement of sweeping tariffs that precipitated historic market losses. This confluence of public sentiment and policy-induced economic turbulence underscores the profound impact of trade policies on both economic performance and public perception.