Inflation, tariffs and a voter revolt: The midterm verdict on Trump’s economy

President Donald Trump faced significant losses in the recent midterm elections, primarily due to inflation, which had a detrimental impact on Republican candidates in House, Senate, and gubernatorial races. A survey of approximately 100,000 midterm voters revealed that most believed Trump's own policies had contributed to rising costs and stifled growth.

The president's claim that his predecessor, Joe Biden, was responsible for the economic woes did not resonate with Americans, as roughly two-thirds of voters attributed inflation to Trump's policies.

The election results aligned with the sentiments expressed by voters in various states, from California to Mississippi, who expressed dissatisfaction with Trump's tariffs and energy policies. High consumer prices, up 3.7% over the past year, contrasted with an inflation rate of 3% during Trump's second term. Trump's efforts to downplay the Iran war's impact on energy costs were dismissed by many voters who believed the conflict drove gasoline prices temporarily.

Consumer price increases were deemed a crucial factor in voters' decisions, with 9 out of 10 respondents stating that the cost of living played a significant role in their vote for Congress. Around 6 in 10 of these voters backed Democratic candidates in their local House races. Despite a growing economy and a strong S&P 500 stock index, AI development has become a source of concern rather than hope.

Around 6 in 10 voters doubted AI's ability to boost productivity and economic growth, citing potential job displacement and financial instability in its place. While major tech billionaires attended state dinners and traveled with Trump, the wealth concentration has left many voters skeptical about the economy's benefits for everyday Americans.