In response to new reports on Donald Trump’s failing economy, DNC Chair Ken Martin released the following statement:

“For the third straight month under Donald Trump, manufacturing shrank, prices rose, and Americans lost their jobs. Instead of helping working families like he promised, Trump instead pushed his congressional lackeys to gut food assistance, rip away health care, and slash rental assistance — all to fund another round of tax handouts for the ultra-wealthy. Come 2026, Trump and the GOP will pay for their disastrous agenda at the ballot box.” 

NEW REPORTS: For the third straight month, Trump’s failing economic agenda shrank manufacturing, as prices rose, hardworking Americans lost their jobs, and economists warn of looming shortages. 

Institute For Supply Management: “Economic activity in the manufacturing sector contracted in May for the third consecutive month … 

“The New Orders Index contracted for the fourth month in a row following a three-month period of expansion … 

“The Prices Index remained in expansion (or ‘increasing’) territory … 

“The Imports Index plunged into extreme contraction in May, registering 39.9 percent, 7.2 percentage points lower than April’s reading of 47.1 percent. … 

“‘[F]actory output continued to contract in May, indicating that panelists’ companies are still revising production plans downward amid economic uncertainty. The Employment Index ticked up for a second consecutive month but remained in contraction, as head-count reductions continued.’ 

Reuters: “U.S. manufacturing contracted for a third straight month in May and suppliers took longer to deliver inputs amid tariffs, potentially signaling looming shortages of some goods.”

ISM Manufacturing Business Survey Committee chair Susan Spence: “The sentiment this month, for every positive comment, there were five negative comments about the tariffs. You can read it in the report. People are worried. I’m seeing comments comparing it to COVID, saying it’s worse…”

S&P Global Chief Business Economist Chris Williamson: “These concerns were not without basis: supplier delays have risen to the highest since October 2022, and incidences of price hikes are at their highest since November 2022, blamed in most cases on tariffs. Smaller firms, and those in consumer facing markets, appear worst hit so far by the impact of tariffs on supply and prices.”

Trump’s economic agenda has been a disaster for working families and small businesses. 

Bloomberg: “Fed staff marked down their expectations for economic growth in 2025 and 2026, reflecting the announced trade policies, the minutes showed.

“‘The staff viewed the possibility that the economy would enter a recession to be almost as likely as the baseline forecast,’ the minutes said.

“The staff forecasted the labor market to weaken ‘substantially,’ with the unemployment rate rising above its so-called natural rate this year and remaining elevated through 2027. Tariffs were seen boosting inflation ‘markedly’ this year. … 

“‘Almost all’ participants noted the risk that inflation could prove more persistent than expected.” 

CNBC: “Here are the retailers raising prices as Trump tariffs take hold” 

Associated Press: “John David Rainey, [Walmart’s] chief financial officer, emphasized that prices are going up on many necessities. The price of bananas, imported from Costa Rica, went up to 54 cents per pound from 50 cents per pound, for example. And he thinks that China-made car seats, which currently sell for $350 at Walmart, will likely go up another $100.” 

USA Today: “Ford Motor Co. is hiking prices … becoming one of the first major automakers to adjust sticker prices in response to President Donald Trump’s tariffs.

Reuters: “Exclusive: Subaru of America increases vehicle prices, citing market conditions” 

Axios: “More than 70% of U.S. small and mid-sized businesses say tariffs have already increased their operating costs … 

“72% of U.S. companies said tariffs have already increased their costs, and 77% expect those costs to rise further by the end of the year.” 

REMINDER: Americans have lost confidence in Trump and are overwhelmingly rejecting his failed economic agenda. 

• Only 39% of Americans say the economy is on the right track, and just 36% approve of Trump’s handling of the economy 
• 63% expect Trump to make inflation worse over the next year 
• 76% of Americans say their income is not keeping up with inflation
• Trump’s approval rating on inflation remains deeply underwater at -17.5%
• Only 33% approve of Trump’s handling of the cost of living

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