Trump’s trade tariffs have shaken consumer confidence in the US

In March 2024, consumer sentiment in the United States suffered a sharp deterioration, accompanied by rising inflation expectations. Economic uncertainty arose against the backdrop of a new wave of tariffs imposed by former President Donald Trump, which led to an escalation of the trade war and raised fears of rising prices and weakening economic stability.

According to Reuters, according to a study by the University of Michigan Consumer Survey Institute, the consumer sentiment index fell to 57.9 points in March compared to 64.7 in February. Thus, it effectively lost all the positive changes recorded after Trump’s victory in the presidential election.

Along with the decline in public confidence in the economic outlook, inflation expectations also increased significantly. While Americans had forecast a 4.3% price increase in February, the rate jumped to 4.9% in March. This reflects growing concerns about further increases in the cost of goods and services due to tariff restrictions.

The main reasons for this decline include the large-scale tariff restrictions that Trump imposed on a wide range of imported goods from Canada, China, and the European Union. In response, these countries also adopted their own measures, which increased economic tensions. Some tariffs were temporarily lifted, but the overall situation remained unstable. An additional blow to the market was Trump's statement on March 14 about the possibility of introducing a 200% duty on imports of European wine, cognac, and other alcohol.

The consequences of the tariff policy affected not only consumer confidence, but also financial markets. The escalation of the trade conflict triggered a sell-off on stock exchanges, which further increased pessimism among Americans.

A Reuters/Ipsos poll conducted March 11-12 found that 57% of Americans believe Trump's economic policies, including sweeping spending cuts and mass layoffs of federal workers, are too unstable. In addition, 53% believe the tariff war will bring more economic shocks than benefits.