Left's tariff doomsday predictions fall flat as Trump's America thrives
In April, President Donald Trump followed through on a campaign promise and implemented tariffs on the majority of the United States' trading partners. Predictably, the left lost their collective minds and giddily spoke of the coming collapse of the American economy, higher inflation and massive unemployment.
Perhaps no one on the left stoked fear more than the Democrat senator from Hawaii, Brian Schatz. Schatz lamented that, "Donald Trump is ruining the economy on purpose … we'll be paying more for everything – groceries, food, cars, homes, toys, electronics, everything that you buy. This is about the ability for people to pay for college. This is about the ability for people to retire with dignity and comfort. Trillions of dollars of wealth are being demolished. These are everyday people panicked about how much more expensive their next trip to Walmart or Costco will be, or when they'll lose their job."
Schatz may be a liberal senator from the Rainbow state, but he is apparently no Nostradamus. The American economy is doing quite well and shows no signs of slowing down.
The United States added nearly 140,000 new jobs in May 2025, beating forecasts and the unemployment rate remained at 4.2%. Since February 2025, the first full month of Trump's second term, the United States has added more than 515,000 jobs, despite shrinking the size of the Federal Government.
Inflation remains low as well.
The Consumer Price Index (CPI), a measure of inflation, was 2.4% for the 12 months ending in May 2025, slightly up from the 2.3% number in April. Core inflation was at 2.8% for the third straight months, growing at the slowest pace since inflation surged in the spring of 2021.
Inflation was held down by declines in airfare, new and used cars, clothing and energy costs.
The positive job news and low inflation have caused consumer confidence to surge.
Consumer confidence rose 12.3 points in May to a reading of 98, the Conference Board said in its latest survey, the first monthly gain since November and the biggest monthly increase since March 2021. The reading of 98 was significantly higher than economists' prediction of 88.
And it isn't just consumer confidence that is improving. Small business confidence is also on the rise.
U.S. small-business confidence improved in May. The National Federation of Independent Business said on June 10 that its Small Business Optimism Index increased three points to 98.8 last month, rising for the first time since December 2024.
In other positive economic news, consumer debt is finally decreasing.
After reaching a historic peak in the last quarter of 2024, credit card balances are improving across the nation. Credit card balances "fell to $1.18 trillion in the first quarter of 2025, according to the latest Household Debt and Credit Report from the Federal Reserve Bank of New York … down $29 billion, or 2.4% from the previous quarter," according to CBS News.
Perhaps credit card debt is decreasing because it is costing Americans less to fill their cars with gas. The average regular gas price in the United States, as of June 10, was "$3.121 per gallon, according to AAA, down from $3.445 a year ago. Gas prices are currently below $3 in 29 states," reported Nerdwallet.
So no, Senator Schatz, Trump has not destroyed the economy. The economy is adding jobs. Inflation is lower under Trump than under former President Joe Biden. Consumer and small business confidence is increasing, and Americans are even starting to pay down their credit card debt.
And it isn't just consumer confidence that is improving. Small business confidence is also on the rise.
Given the June 11 announcement of a trade deal between the United States and China, we should expect to see confidence improve, continued investment in the country by businesses, and more jobs to be created.
The United States' economy is robust and resilient. It will remain so as long as Trump's economic policies remain in place.
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