US consumer confidence has plummeted, with polls showing a significant decline in optimism among Americans. The drop is attributed to the ongoing trade tensions, tariffs, and economic uncertainty triggered by President Donald Trump’s policies. A recent survey found that consumers’ expectations of inflation have increased, jumping from 3.3% in January to 4.3% for 2025.
The University of Michigan’s preliminary February survey reported a decline in consumer sentiment close to 5%, the lowest reading since July 2020. The decrease was not limited to one group, with all age and wealth groups experiencing a decline. Republicans, Independents, and Democrats alike have become more pessimistic about the economy compared to when Trump took office.
Conversely, investors are growing increasingly concerned about the stock market, with expectations of a 42.9% chance of stock price declines over the next six months reaching its highest level since November 2023.
The decline in consumer confidence is attributed to Trump’s ongoing trade policies, including tariffs on Canadian and Mexican goods, which will be largely passed on to American consumers. Consumers are finally beginning to understand that these tariffs will impact them directly, with some surveys suggesting they’ll bear the brunt of the increased costs.
Source: https://www.independent.co.uk/news/world/americas/us-politics/consumer-confidence-drops-trump-turmoil-b2694487.html