Trump Gets More Bad News as Consumer Confidence Plummets
As Americans navigate Donald Trump’s deranged war on global trade, consumers have never trusted him less.
Consumer sentiment has plunged for the fourth month in a row, according to new data released Friday by the University of Michigan’s consumer sentiment index, a key indicator of national economic conditions.
“Consumers report multiple warning signs that raise the risk of recession: expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate this month,” the University of Michigan said in a statement.
Sentiment among consumers is down 11 percent from March, and the decline was “pervasive and unanimous across age, income, education, geographic region, and political affiliation,” wrote survey director Joanne Hsu. Sentiment is also down 30 percent from December, before Donald Trump took office and tanked the hopes of millions of consumers desperate for affordable groceries and sustainable livelihoods.
Since taking office, Trump has spurred economic mayhem in the United States and abroad with his relentless flip-flopping on tariffs and perverse trade policy. On his so-called “Liberation Day,” Trump used national emergency powers to enact tariffs ranging from 10 to 60 percent on more than 90 nations, including an 84 percent tariff. A week later, he announced a 90-day reduction on most of the tariffs while ramping up those on China, leading to some of the most volatile fluctuations financial markets have seen in decades—not exactly the best way to gain consumer trust.
The index also showed that inflation expectations grew from 5 percent last month to 6.7 percent, the highest recorded reading since 1981. Unemployment expectations among consumers also rose to more than double what they were last year.
The numbers were recorded and released before Trump announced the 90-day freeze on reciprocal tariffs, which may have inspired some relief among consumers. Regardless, Americans across all demographics are losing faith in the administration that promised them economic refuge.