McDonald’s has announced a steep drop in its quarterly sales in the United States, marking the largest decline since the onset of the pandemic, as President Trump’s trade policies impact consumer spending habits.

The fast-food giant reported a 3.6 percent decrease in same-store sales for the quarter ending in May, representing the most significant decline since 2020.

Trump, a known supporter of McDonald’s, famously declared to employees, “I know this menu better than you do,” during a visit to a Philadelphia McDonald’s while campaigning last year.

However, the company cautioned on Thursday that it faces some of the most challenging market conditions to date.

The imposition of Trump’s tariffs has raised concerns about potential price hikes and job cuts, subsequently affecting consumer confidence.

Globally, same-store sales experienced a surprising 1 percent decline, contrary to Wall Street analysts’ expectations of a 1 percent increase.

This announcement follows similar warnings from other food service establishments like Domino’s Pizza, Chipotle Mexican Grill, and Starbucks regarding reduced consumer spending on dining out.

The US economy shows signs of strain, having contracted for the first time in three years during the first quarter, raising concerns about a potential recession in 2025.

According to The Conference Board, US consumer confidence fell to its lowest level in nearly five years in April, marking five consecutive months of decline—the longest downturn since 2008.

Sky Canaves, an eMarketer analyst, noted, “Less affluent consumers are particularly sensitive to inflation and rising costs, often being the first to reduce their expenditures on dining out.”

In response, McDonald’s is working to stimulate demand by enhancing its value menu with offerings such as the $5 meal deal and limited-time promotions on selected burgers and fries to compete with its rivals.

Overall, the company’s revenues dropped 3 percent year-on-year to $5.96 billion, while net income also fell by 3 percent to $1.87 billion. In pre-market trading in New York, McDonald’s shares decreased by $4.90, or 1.5 percent, bringing the price to $314.75.