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The phrase "a loss of trust" is correct and usable in written English.
It can be used when discussing situations where confidence or faith in someone or something has diminished or been compromised.
Example: "The scandal led to a significant loss of trust between the community and the local government."
Alternatives: "a breakdown of trust" or "a decline in trust".
Exact(60)
You may also feel a loss of trust.
"There is now a loss of trust in financial services.
There has been a loss of trust in the leadership.
A loss of trust tends to feed on itself.
Now there is a loss of trust in the church.
Maybe leading to some mental blocks, a loss of trust in himself, affecting his football".
A loss of trust in the presidency ensued, and the media became adversarial.
However, rather than winning people over, his behavior over time led to a loss of trust.
"A Brexit would lead to uncertainty and a loss of trust over several years.
Mismanagement of information — either through incompetence or theft — has also fueled a loss of trust.
The fears were probably overdone, but such is the price of a loss of trust.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com