Consumer Sentiment Plummets Amid Rising Inflation Fears, Tariff Impact

Recent surveys reveal a significant decline in U.S. consumer sentiment amid rising inflation expectations and escalating trade tensions, particularly due to President Trump's tariff policies. The University of Michigan's Consumer Sentiment Index dropped to 50.8 in April, the lowest since June 2022, with a notable 11% decrease from March. Inflation expectations surged to 6.7%, the highest level since 1981, as consumers express growing fears of a recession and rising unemployment. Concerns about Trump's tariffs, including a hike on Chinese goods to 125%, have contributed to widespread anxiety across all demographics, with many fearing the impact on personal finances and the broader economy. Nearly half of respondents in a CBS News poll reported feeling financially worse off, reflecting a growing discontent with the administration's approach. The ongoing volatility in trade policies has left consumers and businesses uncertain about future economic conditions, further exacerbating fears of a downturn.