Americans are feeling increasingly pessimistic about the economy due to President Donald Trump’s trade war with other countries.
According to the latest data from the University of Michigan’s survey, consumer sentiment dropped nearly 11% from March to April and 34% compared to the same time last year.
This downward trend has been ongoing for the past three months, triggered by Trump’s announcement of imposing tariffs on imported products, a promise he recently fulfilled during a ceremony at the White House.
Joanne Hsu, the director of the University of Michigan’s surveys of consumers, stated that the decline in consumer sentiment was widespread across various demographics and political affiliations.
Trump’s tariff announcement caused turmoil in the stock markets and unsettled bond investors, leading to a drop in U.S. debt prices. This prompted Trump to reduce tariffs to 10% on all U.S. trading partners except China.
Consumer worries are valid as economists agree that tariffs ultimately burden consumers by potentially increasing prices. The Yale Budget Lab estimated that the average household could be $4,700 poorer due to Trump’s tariff policies.
Democratic leaders have criticized the tariffs, warning that Trump’s actions could steer the economy towards a recession, a concern echoed by economists.
