(NEW YORK) — Consumer confidence improved more than expected in May, ending a monthslong stretch of worsening consumer attitudes as President Donald Trump’s tariffs set off company warnings about price increases even after the president eased his policy.
The reading of brightened consumer sentiment snapped five consecutive months of decline, which had brought the Conference Board gauge to its lowest level since the COVID-19 pandemic.
The rebound in consumer confidence took hold across all age and income demographics, the Conference Board said.
A trade agreement between the U.S. and China earlier this month slashed tit-for-tat tariffs between the world’s two largest economies and triggered a surge in the stock market. Within days, Wall Street firms softened their forecasts of a recession.
The U.S.-China accord marked the latest softening of Trump’s levies, coming weeks after the White House paused far-reaching “reciprocal tariffs” on dozens of countries. Trump also eased sector-specific tariffs targeting autos, and rolled back duties on some goods from Mexico and Canada.
An array of tariffs remain in place, however, including an across-the-board 10% levy that applies to imports from nearly all countries. Additional tariffs have hit auto parts, as well as steel and aluminum.
Consumers face the highest overall average effective tariff rate since 1934, the Yale Budget Lab found this month.
A growing set of major retailers have warned of possible tariff-driven price hikes, including Nike, Target, Walmart and Best Buy.
Walmart CEO Doug McMillan last week said tariffs risk prices increases for a wide range of goods that includes food, toys and electronics.
“The merchandise that we import comes from all over the world,” McMillon said. “All of the tariffs create cost pressure for us.”
Consumer spending, which accounts for about two-thirds of U.S. economic activity, could weaken if shopper sentiment sours. In theory, a slowdown of spending could hammer some businesses, prompting layoffs that in turn further shrink consumer appetite.
Despite ongoing market swings, key measures of the economy remain fairly strong.
The unemployment rate stands at a historically low level and job growth remains robust, though it has slowed from previous highs. In recent months, inflation has cooled, reaching its lowest level since 2021.
Buying a Tesla has become a bit more complicated in the past year.
The company’s Model Y and Model 3 continue to be the best-selling electric vehicles in the U.S., accounting for more than 40% of all EVs sold last year, according to Cox Automotive data. But Tesla’s stronghold on the EV market is slipping.
The U.S. electric automaker has seen its popularity dip in recent months, with insiders attributing the decline to more competition and Elon Musk’s political views.
Reports of Tesla owners selling their vehicles, violent demonstrations at Tesla showrooms and anti-Musk rallies across the globe have convinced some consumers to search for an alternative. The good news is that legacy automakers and electric startups are quickly answering that demand, unveiling new models that offer performance, styling and impressive range.
If you’re searching for an EV, here are some suggestions that could meet your driving needs.
Model 3
Jason Cammisa, host of Hagerty’s “ICON” series, said motorists have “legitimate” concerns about Tesla: “Buying one is making a political statement,” he told ABC News. But the Model 3 is also “the best consumer product in the world,” he argued.
“It’s the best car in the world, period, full stop, not up for discussion,” he said. “You won’t find a better car on planet earth, not at that price and combination of attributes.”
He added, “The thing about Tesla is that is spans so many different price points and socioeconomic situations … you have value shoppers looking at Model 3s as well as billionaires.”
Cammisa, however, has plenty of praise for several Model 3 competitors, including the Hyundai Ioniq 5 ($42,400), the Kia EV6 ($42,900) and Genesis GV60 ($52,350).
“The Hyundai products tend to hit all the marks well — the packaging is good and the UX (user experience) works well enough,” he noted. “The Ioniq 5 N is the enthusiast choice — it has drift modes and you get Lamborghini levels of performance in that car.”
Cammisa said he reviews and ranks EVs on factors that may not have been top priorities for motorists in the past.
“The biggest differentiators in the market now are not things like powertrains and suspension tuning. The consumer experience is the real differentiator now,” he said.
Patrick George, editor-in-chief of InsideEVs, said he’s heard from many Tesla owners who are ready “to move on” from their cars.
“They’re done with Tesla because of Elon,” he told ABC News. “Getting rid of Teslas are a real thing.”
He and his staff have compiled a list of non-Teslas to chose from, which includes the EV6 and Ford Mustang Mach-E.
George noted that the BMW i4 and i5 were superb replacements: “I was massively impressed with how those drive,” he said.
Model Y
Jared Rosenholtz, editor at large for CarBuzz, has two favorite Model Y replacements: the Chevy Equinox ($33,600) and Porsche Macan Electric ($77,295).
“The Equinox EV is a fantastic little vehicle with a nice interior and more than 300 miles of range,” he told ABC News. “With incentives, the price will come in under $30,000.”
The pricier Macan EV “drives just as well as the gas version,” according to Rosenholtz, who is also a fan of the Audi Q6 e-tron ($63,800), which is similar in size and power.
Camissa, too, was impressed with the Macan, saying it had “the best stereo I ever heard in a car.”
“The Macan EV is the total package,” he said.
Rosenholtz also recommended the new Volvo EX30 ($46,195), a smallish yet mighty crossover that packs 422 hp and sprints from 0-60 mph in 3.4 seconds.
“The EX30 is super adorable and the quickest Volvo ever made,” he said.
Model S
Cammisa, Rosenholtz and George all agreed that the Lucid Air, a handsome electric sedan that can travel at least 420 miles on a single charge, was without question a top competitor to the S, or any sedan on the market.
“It has unbelievably fast charging and drives amazing,” said Rosenholtz. “And you can get a Lucid for $10,000 less than the cheapest Model S.”
The Air, which is available in four trims, has a starting price of $69,900. Owners can “fill up” their Air with 200 miles of charge in about 12 minutes if they opt for the Wunderbox battery charger, according to the company.
Cammisa raved about the Air Sapphire ($250,000), which is priced like a Bentley and performs like a supercar: 0-60 mph in 1.89 seconds.
“It’s the best-handling sedan ever made in the history of the world,” he said. “The Lucid Gravity is even better — if you want a minivan looking SUV. Dynamically that thing is unbelievable and the packaging is unbelievable. I send people to Lucids all the time.”
In addition to the Lucid Air, George listed the Porsche Taycan ($100,300) and Hyundai Ioniq 6 ($37,850) as two great options, depending on one’s budget.
“The Ioniq 6 is outstanding on range,” he pointed out. “The Taycan is the OG Model S competitor — it’s more like a sports car with really fast charging.”
Model X
Americans love their big, three-row SUVs and plenty of Model X challengers have hit the market in recent months. George said Tesla owners are increasingly turning to startup Rivian, which makes the fashionable R1S ute ($75,900).
“We’ve seen a lot of Model X owners move to Rivian. It’s the closest to Tesla in so many areas — software updates, range and performance,” George said. “Everyone who has gotten a Rivian has so far adored it. It’s one of my favorite trucks.”
Added Cammisa: “The R1S is the EV that Range Rover owners want.”
Cammisa still prefers the Lucid Gravity ($79,900), which is available to order now on the Lucid site.
“It does have the proportions of a minivan but the engineers have crafted the perfect commuter vehicle,” he said. “This thing has everything you need but the question will be: is this what people want?”
George also pointed to the Polestar 3 ($67,500), a sleek and haute SUV that can be configured in all-wheel drive or rear-wheel drive. The 3’s long range dual motor model makes 489 horsepower and 620 lb.-ft. of torque and its dual chamber active air suspension improves the handling and ride quality by adapting to sensor input 500 times a second.
“The Polestar 3 is very Tesla-esque,” said George. “It’s got great tech, outstanding performance and great styling.”
Honda’s Prologue ($47,400), the company’s first electric SUV, has already been a hit with consumers since it launched last year. The interior is spacious, the optional panoramic roof adds brightness to the cabin and designers included high-quality materials and large buttons and knobs. Honda has partnered with General Motors on battery development and technology, so there are many similarities with the Chevy Blazer EV.
“The Prologue is a great gateway to EVs,” said George, who noted how “normal” the Prologue drove compared to more aggressive regenerative braking systems. Plus, “it has buttons if you don’t want a car that’s all screens and minimalist.”
(WASHINGTON) — President Donald Trump has disrupted global trade and roiled markets in an effort to bring manufacturing jobs back to the U.S. Some of his top tech allies, however, have backed ventures that replace human workers with robots.
Elon Musk, a top donor and adviser to Trump, has touted humanoid robots as a future growth area for electric-carmaker Tesla. “You can produce any product,” Musk said of the robots’ potential capacity during a February interview with Dubai’s World Governments Summit.
Amazon founder Jeff Bezos, who Trump last month called “terrific,” has invested in several advanced robotics firms.
Bezos last year poured funds into Figure, a humanoid robot company that says its initial rollout will focus on manufacturers and warehouses, among other business applications. “We believe humanoids will revolutionize a variety of industries,” the company says on its website.
Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman – both of whom joined Trump on his recent trip to the Middle East – helmed their respective companies as each invested in Figure. OpenAI ended its partnership with Figure last year.
“Trump is talking about bringing back the jobs, and he’s not understanding the tension between that goal and automation, which the tech bros have enthusiasm for,” Harry Holzer, a professor of public policy at Georgetown University and a former chief economist at the U.S. Department of Labor, told ABC News. “There’s a fundamental conflict between those goals.”
Musk did not immediately respond to ABC News’ request for comment made through Musk-owned firm SpaceX. Neither Bezos, Huang nor Altman responded to ABC News’ request.
Speaking at a conference in April, Huang said the onset of artificial intelligence would fuel “new types of factories,” which in turn would create jobs in construction and steelmaking, as well as in trades such as plumbing and electricity.
Even more, Huang said, AI is set to trigger a surge in productivity at companies that adopt the new technology, allowing them to add employees as the firms increase output and revenue.
“New jobs will be created, some jobs will be lost, every job will be changed,” Huang said. “Remember, it’s not AI that’s going to take your job. It’s not AI that’s going to destroy your company. It’s the company and the person who uses AI that’s going to take your job. And so that’s something to internalize.”
Even after a rollback of some levies, consumers face the highest overall average effective tariff rate since 1934, the Yale Budget Lab found earlier this month.
A key reason for the tariffs, White House officials say: Reshoring factories and rejuvenating employment in the manufacturing industry.
Commerce Secretary Howard Lutnick said this month in an interview with Fox News that Trump’s vision for ushering in a “golden age” for America involved enticing manufacturers to open factories and build in the United States.
“We’re going to have huge jobs in manufacturing. You’ve heard the president talk about trillions and trillions of factories being built in America,” he said in the interview on May 11.
In response to ABC News’ request for comment, White House Spokesperson Kush Desai said “the importance of President Trump’s push to reinvigorate American industry goes beyond creating good-paying jobs for everyday Americans.”
“Supply chain shocks of critical pharmaceuticals, medical equipment, and semiconductors during the COVID era prove that America cannot rely on foreign imports. The Trump administration remains committed to reshoring manufacturing that’s critical to our national and economic security with a multifaceted approach of tariffs, tax cuts, rapid deregulation, and domestic energy production,” Desai added.
The share of U.S. workers in manufacturing has plummeted for decades. Roughly 8% of U.S. workers currently hold positions in manufacturing, which marks a steep decline from about a quarter of all employees as recently as 1970.
Researchers attribute such decline to overlapping trends, including the offshoring of manufacturing to low-wage markets overseas and the adoption of labor-saving technology throughout the sector.
Long before current advances, automation significantly increased productivity in U.S. factories, meaning the same number of workers could produce many more goods, researchers at Ball State University found in 2015. As a result, they said, manufacturing employment stagnated for decades even as output climbed.
“Automation is something we’ve seen for a long time,” Philipp Kircher, a professor of industrial and labor relations at Cornell University, told ABC News.
Some of Trump’s tech allies have backed firms that seek to further automate manufacturing, touting a new wave of artificial-intelligence equipped robots as a replacement for some workers and salve for labor shortages.
Robotics outfit Vicarious boasts $250 million in investments from a set of backers that includes Bezos, Musk and Meta CEO Mark Zuckerberg – all of whom flanked Trump during his inauguration.
On a webpage displaying photos of robots for use in warehouse settings, Vicarious tells potential clients that the products can “reduce both your costs and person-hour needs.”
In 2022, Vicarious was acquired by Alphabet-backed robotics software firm Intrinsic. Alphabet CEO Sundar Pichai also sat alongside tech leaders at Trump’s inauguration.
Alphabet did not respond to ABC News’ request for comment. Meta declined to comment.
Yong Suk Lee, a professor of economics and technology at the University of Notre Dame, described the views on automation among Trump’s tech allies and some of his trade advisers as “opposed.”
The tech position, Lee said, would likely win out, even if some firms do open plants in the U.S.
“If you want to reshore, are you going to pay the same wages as Vietnam? Probably not,” Lee said. “Companies are faced with higher labor costs. In that case, they’ll probably automate.”
Discordant views among some tech leaders and White House officials surfaced in April, when Musk sharply criticized tariff-advocate Peter Navarro, Trump’s senior counselor for trade and manufacturing. Navarro, Musk said, is “truly a moron.”
In an interview with CNBC, Navarro responded, saying Musk “isn’t a car manufacturer — he’s a car assembler.”
To be sure, analysts said, automation in manufacturing would likely continue regardless of support from Trump’s tech allies, since producers are locked in a competition to lower costs and increase output. The precise outlook for manufacturing employment is unclear, they added, since additional technology may add jobs for those maintaining and optimizing the machinery.
“Whether it’s the companies that currently support the U.S. president or not, somebody would be doing this innovation, maybe slightly slower,” Kircher said.
Even at current employment levels, a labor shortage bedevils U.S. manufacturers. Roughly one of every five U.S. factories that failed to produce at full capacity cited a shortage of workers, Jason Miller, a professor of supply chain management at Michigan State University, found in a January study analyzing government data.
Agility Robots, an Amazon-backed firm building humanoid robots, identifies the current push for rejuvenated U.S. manufacturing as an opportunity for greater adoption of technology.
“Manufacturing companies are seeing a massive reshoring movement spanning various industries,” Agility Robots says on its website. “Adding a humanoid robot to your manufacturing facility is a great way to stay on the leading edge of automation.”
In response to ABC News’ request for comment, an Amazon spokesperson pointed to previous remarks about robotics made by a company executive.
“Our goal is to ensure these systems improve safety and productivity. Technology should be used to help us retain and grow our talent through skill development and reimagining how we make our workplace better, both in productivity and safety. If we do this well, we’re certain to always innovate for our customers,” Tye Brady, chief technologist at Amazon Robotics, said in a September blog post.
Amazon has “created more U.S. jobs in the last decade than any other company,” Amazon said this month.
(WASHINGTON) — Despite repeated claims from the White House that President Donald Trump’s Thursday night gala for the top holders of his cryptocurrency meme coin had nothing to do with his official duties, several of those investors visited the White House Friday afternoon for what they described as a special VIP event, the attendees told ABC News.
Sangrok Oh, a Korean crypto investor and entrepreneur, told ABC News on Friday that he and other top investors had been invited to tour the White House Friday afternoon, though it was not clear to him whether Trump himself would meet them.
“So, we’re going to visit and tour the White House [and] at the same time talk about crypto industries and the future of crypto,” Oh said.
Thursday night’s black tie event, held at Trump’s Washington-area golf club, was attended by around 200 cryptocurrency traders, including many from overseas, who gained admission through a contest that awarded invitations to the top investors in Trump’s meme coin — with at least some of the funds flowing directly into the Trump family’s coffers.
Critics have blasted the gala as a “pay for play” event in which investors who poured millions into Trump’s crypto coin got special access to the president.
News that top $TRUMP coin investors visited the White House appeared to contradict White House Press Secretary Karoline Leavitt’s assertion Thursday that the president was attending the crypto gala in a personal capacity, and that since the dinner did not take place at the White House, it was separate from his official duties.
“The president is attending [the dinner] in his personal time,” Leavitt said Thursday. “It is not a White House dinner. It’s not taking place here at the White House.”
The White House did not immediately respond on Friday to a request for comment from ABC News.
Cherry Hsu, an executive at MemeCore, a Singapore-based blockchain startup, said the firm’s founder, known publicly as “Ice,” had also been invited to the White House on Friday afternoon. MemeCore, according to the contest leaderboard, finished second in the competition with $TRUMP coin holdings in excess of $1 million.
And late Friday, Justin Sun, a Chinese crupto mogul and the top investor in Trump’s meme coin, posted a highly produced video of his White House tour, writing on X, “Was an honor to be invited to tour the @WhiteHouse. Such a privilege to see it in person.”
In addition to his multimillion-dollar investment in the $TRUMP coin, Sun has also invested $75 million in World Liberty Financial, another Trump-backed crypto venture. One month after that investment, SEC lawyers under the Trump administration moved to halt an alleged fraud case against Sun.
The Trump meme coin’s website at one point earlier this month advertised a “Special VIP White House tour” for the top 25 meme coin holders as part of the contest — but as of last week, the site said only that a “Special VIP tour” would be arranged, without mentioning the White House.
The site also included a disclaimer saying the tour was being arranged by the Fight Fight Fight LLC, and that the president himself would be appearing as a “guest.”
(NEW YORK) — Stocks tumbled in early trading on Friday after President Donald Trump threatened new tariffs targeting tech giant Apple and the European Union.
The Dow Jones Industrial Average dropped 458 points, or 1.1%, while the S&P 500 declined 1.2%. The tech-heavy Nasdaq dropped 1.6%.
Shares of Apple fell nearly 3% at the open of trading. European stocks also declined on Friday, as the STOXX Europe 600 index fell nearly 2%.
In a social media post, Trump urged Apple to manufacture iPhones in the U.S., criticizing the company for plans to shift some production to India in an effort to avoid tariffs slapped on China. If Apple fails to shift iPhone manufacturing to the U.S., Trump said, the company would face a 25% tariff.
Minutes later, Trump issued a social media post slamming the European Union over a trade posture that he described as “very difficult to deal with.” In response,Trump said he is “recommending” a 50% tariff on goods from the European Union to begin on June 1.
The market dip erased some gains made in recent weeks as Trump rolled back levies.
Trump last month exempted phones, computers and chips from so-called “reciprocal tariffs” imposed on China-made goods, which at that time amounted to a 125% levy. The move also excluded such products from a 10% across-the-board tariff imposed on nearly all imports.
Last week, Trump temporarily slashed the reciprocal tariffs on China from 125% to 10% as the U.S. and China hold trade negotiations. China still faces 20% tariffs over its role in the fentanyl trade, bringing total levies on Chinese goods to 30%.
The U.S.-China agreement marked the latest softening of Trump’s levies, coming weeks after the White House paused far-reaching “reciprocal tariffs” on dozens of countries. Trump also eased sector-specific tariffs targeting autos, and rolled back duties on some goods from Mexico and Canada.
An array of tariffs remain in place, however, including an across-the-board 10% levy that applies to imports from nearly all countries. Additional tariffs have hit auto parts, as well as steel and aluminum.
Consumers face the highest overall average effective tariff rate since 1934, the Yale Budget Lab found earlier this month.
A growing set of major retailers have warned of possible tariff-driven price hikes, including Nike, Target, Walmart and Best Buy.
(NEW YORK) — Bitcoin surged to a record high on Thursday, vaulting more than 3% in early trading and hurtling past $110,000 for the first time.
The price of bitcoin stood at $111,385 on Thursday, extending a sharp rise that stretches back to the November election of President Donald Trump, a cryptocurrency supporter and investor.
Ether, the second-largest cryptocurrency, jumped 6%. The $TRUMP memecoin, a crypto coin launched by the president in January, increased nearly 6%.
A surge in the value of some cryptocurrencies in recent days followed a Senate vote to advance the GENIUS Act, an industry-backed bill that aims to regulate some digital currency.
The measure establishes rules targeting stablecoins, a type of cryptocurrency pegged to the value of another asset, often the U.S. dollar.
If enacted, the bill could allow such crypto coins to become a mainstream tool for digital payments and other financial instruments, setting the stage for an influx of investment in digital currency.
Critics say the measure fails to address conflict-of-interest concerns exemplified by Trump, and it risks endangering consumers and the wider economy with a weak set of restrictions.
Trump, who also backs a cryptocurrency firm World Liberty Financial, has denied any wrongdoing involving his crypto ventures.
The record high for bitcoin also coincides with a spike in Treasury yields amid deficit concerns centered on a domestic policy bill passed by the U.S. House on Thursday.
The nonpartisan Congressional Budget Office on Tuesday found the tax policies backed by Trump would add $3.8 trillion to the national debt. The finding comes days after a U.S. credit downgrade at Moody’s in part due to the country’s deficit.
Higher yields increase the cost of U.S. borrowing and add strain to the nation’s finances. In theory, investors may seek out alternatives to the U.S. dollar as debit yields face upward pressure.
Bryan Armour, the director of passive strategies research at financial firm Morningstar, attributed the recent rise in the price of bitcoin to both industry regulation and bond market fears.
“I suspect it’s a mix of regulatory adoption and fear for the dollar given the expectation of high government spending,” Armour said.
The price of bitcoin has surged about 40% since the presidential election. Over that period, the S&P 500 has declined 2%, while the tech-heavy Nasdaq has dropped 3%.
In July, Trump told the audience at a cryptocurrency conference in Nashville, Tennessee, that he wanted to turn the U.S. into the “crypto capital of the planet.”
Trump promised to weaken federal oversight of cryptocurrency and establish the federal government’s first strategic bitcoin reserve.
In March, Trump signed an executive order establishing the reserve of digital currencies, saying the move would position the U.S. “as a leader among nations in government digital asset strategy.”
On Thursday, Trump is set to attend a gala with hundreds of top investors in his memecoin, which an announcement described as an “intimate private dinner.”
The move elicited concern among some critics as a possible means of exchanging access to the president for financial gain.
(NEW YORK) — Stocks closed down significantly on Wednesday as bond yields spiked amid deficit concerns centered on a tax cut measure under consideration in the U.S. House as part of a megabill supporting President Donald Trump’s second-term agenda.
The Dow Jones Industrial Average closed down 817 points, or 1.9%, while the S&P 500 declined 1.6%. The tech-heavy Nasdaq dropped 1.4%.
The sell-off on Wall Street coincided with a surge in bond yields, which in turn raised the cost of U.S. borrowing and stoked investor fears about the wider impact across the economy.
The 10-year Treasury yield jumped from 4.48% to 4.58%, reaching its highest level since February.
The nonpartisan Congressional Budget Office on Tuesday found the tax policies backed by Trump would add $3.8 trillion to the national debt.
The bond sell-off arrives at a moment of heightened volatility in Treasury markets. Long-term bond yields soared last month in the immediate aftermath of Trump’s “Liberation Day” tariffs.
A U.S. credit downgrade at Moody’s last week further roiled debt markets.
Bond yields rise as bond prices fall. When a sell-off hits and demand for bonds dries up, it sends bond prices lower. In turn, bond yields move higher.
The yield for long-term Treasury bonds helps set interest rates for a host of consumer loans, including mortgages and credit cards.
When interest rates rise, businesses also face higher borrowing costs, making it less likely that firms would move forward with an office expansion or round of hiring, analysts previously told ABC News. In turn, such conditions risk an economic slowdown.
(WASHINGTON) — If this past weekend in European politics is an indicator of anything, it’s that the “Trump effect” is real, and its reverberations are unpredictable.
Three European Union countries held elections on Sunday — Romania, Poland and Portugal — with the results failing to show any clear trend for the future of European politics. The elections did, however, indicate the American president’s growing influence on the continent.
The disparate responses from voters in all three countries — and the lack of any decisive victory for any one party or candidate in Portugal or Poland — hint that the political polarization that has roiled the U.S. over the past decade is a global trend, not merely an American one.
As to whether President Donald Trump and the “Make America Great Again” movement swirling around him can establish European avatars, the question remains an open one.
“I don’t know if I have a firm answer,” Celia Belin, a senior policy fellow at the European Council on Foreign Relations and head of its Paris office, told ABC News. “At the moment, we are all monitoring what is happening and how this influence can establish itself.”
“It’s very early,” Belin added. “This is an ongoing phenomenon.”
While it’s unclear what the extent of Trump’s impact on European politics will ultimately be, Belin said the impact is “stronger” than it was two years ago.
Trump’s influence — indirect and direct — has given populist movements like Germany’s Alternative for Germany party, Poland’s nationalist Law and Justice (PiS) party and Portugal’s far-right Chega party a clear boost, evident in recent elections in each country.
“If I am to compare with two years ago, for example, it is stronger, it is more united, it gives inspiration to a ton of populist nationalist leaders in Europe,” Belin said. “It’s getting stronger. That’s the direction it’s going in right now.”
The groundswell of grievances that carried Trump to the Oval Office twice is not merely an American phenomenon and manifests differently in individual nations. Concerns over globalization, immigration, inequality, the cost of living, low rates of economic growth, progressivism and national identity are near-universal in the Western democratic world.
Trump seized upon those conditions in the U.S. and right-wing leaders in Europe are seeking to do the same.
Election week in Europe
This week’s election results in Romania, Poland and Portugal, however, suggest the translation of Trumpism into European political languages remains incomplete.
In Romania, voters opted for Bucharest Mayor Nicusor Dan’s pro-Europe, pro-NATO, pro-Ukraine platform. Dan won with around 54% of the vote.
Dan’s opponent — Trump supporter George Simion, who courted the MAGA movement and even visited the U.S. during his campaign — came up short, though he vowed to continue “our fight for freedom and our great values along with other patriots, sovereignists and conservatives all over the world.”
In Poland, the presidential election saw liberal Warsaw Mayor Rafal Trzaskowski secure an unexpectedly tight victory in the first round of voting with around 31% of the vote, beating out right-wing rival Karol Nawrocki — who was personally endorsed by Trump — who had 29.5% of the vote.
The two men will go into the second round of voting on June 1, hoping to draw voters from other minor candidates, among them a significant bloc which voted for far-right firebrand Slawomir Mentzen, who came third with 14.8%.
Piotr Buras, a senior policy fellow at ECFR at the head of its Warsaw office, told ABC News that Trump has loomed large over the election.
Nawrocki framed himself as the Trump-friendly candidate, along with his backers in the Law and Justice party, criticizing Trzaskowski’s Civic Platform party and Prime Minister Donald Tusk for allegedly undermining Polish-American relations.
“We used to have a nationwide consensus on America,” Buras said, with voters generally warm to the idea of close ties with Washington, D.C. “Now, because of this ideological divide in Poland, because of the U.S. and because of Trump’s approach to Europe, Poland is suddenly divided on how to go about America,” he added.
In Portugal, meanwhile, the far-right Chega party gained a record 22.6% share of the vote, blowing open the long-standing two-party domination of the country’s political scene even though it was unable to overhaul the ruling center-right Democratic Alliance.
“I am not going to stop until I become the prime minister of Portugal,” Chega leader Andre Ventura — who was among the foreign politicians invited to Trump’s second inauguration — said.
Making Europe great again?
Such confidence in defeat may be buoyed by the strong foundations populist parties and candidates are putting down in Europe. Across the continent, far-right groups are winning historically large chunks of the electorate and dominating political debates, even without securing the reins of power.
In the U.K., the right-wing Reform party recorded a stunning performance in the May local elections, winning hundreds of council seats and leaving leader Nigel Farage — well-known for his cozy relationship with Trump and the MAGA movement — to declare an end to the traditional dominance of Britain’s two major parties.
In Germany’s February parliamentary election, the far-right Alternative for Germany (AfD) party converted years of growing popularity to win around 21% of the vote and become the second-largest party in the Bundestag.
U.S. Vice President JD Vance conducted his first foreign trip in his new position to Germany in February, shortly before the election, speaking at the Munich Security Conference on February 14.
In his speech addressing the annual security conference, Vance criticized Europe for hindering free speech, suggesting the conference’s decision to ban AfD members from attending was a form of censorship.
“In Britain, and across Europe, free speech, I fear, is in retreat,” Vance said. “I believe that dismissing people, dismissing their concerns, or, worse yet, shutting down media, shutting down elections, or shutting people out of the political process protects nothing. In fact, it is the most surefire way to destroy democracy.” Many political analysts considered Vance’s remarks to be a tacit endorsement of AfD from the Trump administration.
And in France, President Emmanuel Macron has thus far held off the persistent challenge for the presidency from far-right leader Marine Le Pen and the National Rally, but he was unable to stop the party from becoming the largest in the National Assembly in 2024. Only a shaky minority government has kept the party out of the prime minister’s office.
The insurgent parties are coordinating. Leaders have increasingly been drawn to American conservative events, such as the Conservative Political Action Conference — the first-ever European installment of which was held in Budapest, Hungary, in 2022.
And this year, right-wingers gathered for the Make Europe Great Again conference in Madrid in February, organized by Spain’s far-right VOX party.
Buras noted rumors that Vice President JD Vance may even attend a planned CPAC event in Poland in late May, in what could only be interpreted as a show of support for Nawrocki. The event raises the prospect of American “interference almost, or at least influence, from the U.S.,” Buras said.
MAGA blowback
Trump is just as divisive abroad as he is at home. Indeed, polls consistently indicate that many European voters are skeptical of, unsettled by or outright hostile to the American president.
There is, then, no guarantee that a MAGA association will put foreign populists in power. Recent elections in Canada and Australia, for example, saw center-left establishment parties secure victory against conservative opponents they sought to smear as Trumpian.
Trump’s return to the White House “has woken up the anti-populist or anti-nationalist movements,” Belin said. “It gives them a foil. … You want to mobilize your electorate and use the U.S. of Donald Trump as a sort of scarecrow — the mobilization effect goes in two directions.”
“It fuels the extremist base and so it excites a lot of people, but it also fuels the other side and it also frightens the middle,” Belin said.
(NEW YORK) — Stocks slumped at the open of trading on Monday after a downgrade of U.S. credit triggered a spike in debt yields that threatened to raise borrowing costs throughout the nation’s economy.
The Dow Jones Industrial Average dropped 295 points, or 0.7%, while the S&P 500 fell 0.9%. The tech-heavy Nasdaq plunged 1.2%.
Moody’s, a top ratings agency, cut the U.S. credit rating on Friday, dropping it one notch from the top rating of Aaa to a lower classification of Aa1.
The credit downgrade unleashed a selloff of U.S. debt, sending Treasury yields higher, which in turn raised the cost of U.S. borrowing and stoked investor fears about wider impact across the economy.
“This is a major symbolic move as Moody’s were the last of the major rating agencies to have the U.S. at the top rating,” a Deutsche Bank analyst said in a client note shared with ABC News.
The Treasury selloff sent long-term yields soaring above the level attained in the immediate aftermath of President Donald Trump’s “Liberation Day” tariffs. That spike in yields helped persuade Trump to suspend a major swathe of the tariffs, Trump later said.
The current spike in debt yields coincides with U.S. House Republicans’ push to pass a domestic policy bill that includes broad tax cuts. The nonpartisan Congressional Budget Office warned last month that the bill would raise the nation’s debt, which now stands at about $36 trillion.
(NEW YORK) — Consumer attitudes soured in May for the fourth consecutive month, even as President Donald Trump dialed back some tariffs. The reading came in below the level economists expected.
Shopper sentiment now hovers near its lowest level since a severe bout of inflation three years ago, University of Michigan survey data on Friday showed. Before that, the measure of consumer attitudes hadn’t ever fallen this low.
The monthslong decline in consumer sentiment traces back to inflation fears and recession warnings set off by Trump’s initial rollout of levies.
A trade agreement between the U.S. and China this week slashed tit-for-tat tariffs between the world’s two largest economies and triggered a surge in the stock market. Within days, Wall Street firms softened their forecasts of a recession.
The U.S.-China accord marked the latest softening of Trump’s levies, coming weeks after the White House paused far-reaching “reciprocal tariffs” on dozens of countries. Trump also eased sector-specific tariffs targeting autos, and rolled back duties on some goods from Mexico and Canada.
The drawdown of tariffs coincided with data suggesting the economy remains in solid shape.
Inflation eased slightly last month, dropping to its lowest level since 2021, government data this week showed. Plus, the economy continues to add jobs at a solid pace.
Still, uncertainty looms over the economic outlook.
An array of tariffs remain in place, including an across-the-board 10% levy that applies to imports from nearly all countries. Additional tariffs have hit auto parts, as well as steel and aluminum.
Even after the pullback, a 30% tariff on China far exceeds the level before Trump took office, posing a risk of price increases for a large swathe of products that includes apparel, toys and some electronics.
Walmart executives on Thursday warned of tariff-driven price increases for perishable imports such as coffee, avocados, bananas and roses, as well as toys and electronics.
Consumers showed signs of weakness last month as retail sales slowed, indicating shoppers may be pulling back as they await possible fallout from tariffs. The trend poses a risk for the wider economy, since consumer spending accounts for roughly two-thirds of economic activity.
The U.S. economy shrank at the outset of this year, registering a sharp drop-off from robust growth over the final months of 2024.
But a surge of imports ahead of Trump’s tariffs likely clouded the figure, since the calculation subtracts imports in an effort to exclude foreign production from the calculation of gross domestic product. Analysts cautioned that a lowering of GDP on account of this trend would not reflect economic weakness.
