While Trump’s economic approval slides, markets rise on Powell and trade signals as Tesla faces brand hit
Public confidence in US President Donald Trump’s handling of the economy has fallen to its lowest levels since his return to office, according to new data from multiple surveys.
The CNBC All-America Economic Survey, Reuters/Ipsos and Pew Research Center all reported significant drops in approval.
Just 37 percent of Americans approve of Trump’s economic management, according to Reuters/Ipsos — lower than at any point during his first term.
The CNBC survey showed only 43 percent approval, while Pew found that only 45 percent of Americans trust Trump to make “good decisions” on their economy — down 14 points from November.
The data shows 59 percent of respondents disapprove of Trump’s sweeping tariffs, while many say the American administration’s focus on imposing and pausing tariffs, rather than delivering on promised tax cuts and deregulation, has created uncertainty.
Partisan divides persist: 80 percent of Republicans said they are confident in Trump’s economic leadership, compared to just 11 percent of Democrats.
Tesla’s outlook has also weakened amid these broader political and economic tensions, according to BNN Bloomberg.
The company reported a 71 percent drop in net income for Q1 to US$409m, or 12 cents a share, compared to US$1.39bn or 41 cents a year ago.
Revenue fell 9 percent to US$19.34bn, missing analysts’ expectations.
Tesla withdrew its earlier 2025 sales forecast and said it would reassess next quarter. It attributed the shift to US economic conditions, political sentiment, and trade policy disruptions.
The electric vehicle maker said global trade policy shifts are complicating its cost structure and supply chains, and could affect near-term demand.
Tesla acknowledged that “changing political sentiment” is also weighing on buyer interest.
The company continues to focus on AI, driverless technology, and robotics such as the Optimus humanoid robot. Tesla said new affordable vehicle models remain scheduled for production in the first half of this year.
Tesla shares rose more than 5 percent in extended trading after CEO Elon Musk said he would reduce his time spent at the US Department of Government Efficiency starting in May.
Despite this, Tesla shares have declined 44 percent in 2025, resulting in US$11.5bn in mark-to-market gains for short sellers.
Musk and Tesla have both seen reputational damage.
The CNBC survey found 47 percent of Americans view Tesla negatively, compared to just 10 percent for General Motors. Around half disapprove of Musk personally.
Protest movements have targeted Tesla showrooms and charging stations, while Wedbush Securities analyst Dan Ives warned of “15 percent–20 percent permanent demand destruction” due to damage Musk has done to the brand.
Meanwhile, financial markets rallied after Trump stated he has “no intention” of firing US Federal Reserve Chair Jerome Powell, despite past criticism.
He clarified: “Never did,” though added he would like Powell to be “a little more active” on interest rate reductions.
US Treasury Secretary Scott Bessent, speaking at a JPMorgan Chase summit, predicted a “very near future” de-escalation in the US-China trade war.
He said neither country sees the status quo as sustainable. US tariffs on Chinese imports currently stand at 145 percent.
Markets responded positively. On Tuesday, the S&P 500 rose 2.51 percent, the Dow Jones gained 2.66 percent, and the Nasdaq Composite added 2.71 percent.
The pan-European Stoxx 600 index climbed 0.25 percent. European Central Bank President Christine Lagarde told CNBC that disinflation in the eurozone was “nearing completion,” with March inflation at 2.2 percent.
The momentum continued into Wednesday, with the S&P 500 rising 1.7 percent, the Nasdaq up 2.5 percent and the Dow gaining over 400 points despite pulling back from a peak rise of more than 1,100 points. All three indexes are set for weekly gains.
Amid this economic turbulence, the $TRUMP meme coin surged over 50 percent after a dinner event with the president was announced for the token’s top 220 holders.
The coin reached a US$2.7bn market value. First Lady Melania Trump’s $MELANIA coin also briefly reached US$2bn before crashing. Both tokens are exempt from immediate SEC regulation, as they are not classified as securities.
Only 20 percent of the $TRUMP token’s supply is currently tradeable; the rest is held by insiders under a three-year vesting schedule. The website claims 80 percent is controlled by the Trump Organization and related entities.
