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Consumer Sentiment Craters as Trump Tariff Chaos Spooks U.S.

Americans are growing increasingly nervous about the economy as consumer confidence tanks for the fourth straight month. The University of Michigan’s latest survey shows sentiment plummeted 30% since December – with inflation fears hitting levels not seen since 1981.

What’s Crushing Consumer Confidence?

President Trump’s escalating trade wars appear to be the main culprit. The survey reveals “pervasive and unanimous” pessimism across all groups – Republicans and Democrats, rich and poor, young and old.

“Consumers see multiple recession warning signs,” researchers noted. Expectations about business conditions, personal finances, and job markets all deteriorated sharply in April.

Inflation Fears Go Through the Roof

The numbers are startling:

  • Inflation expectations jumped to 6.7% – highest since 1981
  • Consumer sentiment down 11% just since March
  • All political parties reporting higher cost-of-living worries

This comes despite recent positive economic data like strong job growth and falling gas prices. But economists warn tariffs could change that fast.

Will Trump’s Tariff Pause Help?

There’s one potential bright spot. The survey ended before Trump announced a 90-day freeze on some tariffs this week. That move could ease pressures – if it holds.

Meanwhile, markets remain jittery. The disconnect between Wall Street’s nervousness and solid employment numbers has never been wider.

Why This Matters

When consumers lose faith, they spend less. That can turn recession fears into reality. With inflation worries at 40-year highs and trade wars raging, the economic mood may keep darkening.

Bottom line: The Trump economic boom is showing cracks. Whether it’s just a rough patch or the start of something worse may depend on what happens next in the trade war

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