Donald Trump’s tariff chaos is starting to have a real effect—and now, consumer confidence appears to have suffered as a result.
According to “preliminary results” from The University of Michigan’s monthly Surveys of Consumers, the picture isn’t looking good. The Index of Consumer Sentiment is down 10.9 percent month-over-month and 34.2 percent year-over-year. The Current Economic Conditions number is down 11.4 percent month-over-month and 28.5 percent year-over-year. And the Index of Consumer Expectations is down 10.3 percent month-over-month and 37.9 percent year-over-year.
“Consumer sentiment fell for the fourth straight month, plunging 11% from March. This decline was, like the last month’s, pervasive and unanimous across age, income, education, geographic region, and political affiliation,” Surveys of Consumers Director Joanne Hsu said in the release.
“This lack of labor market confidence lies in sharp contrast to the past several years when robust spending was supported primarily by strong labor markets and incomes.”
Nightmarish consumer-confidence report from @UMichiganNews – “highest inflation expectations since 1981”, and “multiple warning signs that raise the risk of recession”. https://t.co/l8SUdJUFdk pic.twitter.com/F5fzZpCYQO
— Ed Gresser (@EBGresser) April 11, 2025
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“Sentiment has now lost more than 30% since December 2024 amid growing worries about trade war developments that have oscillated over the course of the year. 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.”
Hsu wrote that the survey was finished prior to the April 9 announcement that most of the previously announced tariffs were being paused for 90 days.
Donald Trump’s name is not mentioned in the release. But it’s clear that his policies aren’t helping if not actively hurting.
Wow: American economic confidence is now the worst it’s been in 45 YEARS.
Reminder: this is before the inflationary impact of tariffs even reaches consumers. pic.twitter.com/0uk0Hm5Kv9
— Matt McDermott (@mattmfm) April 11, 2025
As reported by The New Republic, “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.”
Photo courtesy of the Political Tribune media library.
