Escalating concerns about Trump's trade war lead to a 11% drop in consumer sentiment this month
Trump's buoyant impact on consumer mood has taken a dive, turning into a Trump-induced slump.
Amongst Americans, anxiety over President Donald Trump's volatile and chaotic trade war keeps on mounting, according to the University of Michigan's latest consumer survey released on Friday. This month, consumer sentiment dropped a staggering 11%, reaching its lowest point since the skeletal month of November, 2022. This sudden dip contrasts sharply with the post-US presidential election observer in December, when sentiment skyrocketed to its highest levels in months.
The Trump administration's often unpredictable and tumultuous tariff rollout has been a recipe for discord: Earlier this month, Trump announced a whopping 25% tariff on Mexico and Canada, only to postpone these duties once again following pressure from business leaders. Post-implementation of the US tariffs on steel and aluminum imports on Wednesday, the European Union and Canada swifly retaliated with their own tariffs.
This whirlwind of competing tariffs has sent ripples of uncertainty coursing through the economic landscape in recent weeks, jangling Wall Street nerves and making strategic planning near-impossible for companies, as suggested by recent business surveys. Fears of inflation have also reared their head.
Joanne Hsu, the survey's director, explained in a statement, "Many consumers cited the high level of uncertainty surrounding policy and other economic factors. Fickle economic policies make it challenging, irrespective of one's policy inclinations, to plan for the future."
Stay tuned as this story continues to unfold.
- The erratic tariff rollouts by the Trump administration, including the recent one on Wednesday, have caused a surge in consumer anxiety about the economy, according to the University of Michigan's latest consumer survey in 2022.
- The business community is finding it increasingly difficult to plan for the future due to the high level of uncertainty surrounding the tariff wars, as suggested by recent business surveys.
- As the Trump-induced slump in consumer sentiment continues, the ongoing business conflict with tariffs between the US, European Union, and Canada is causing concern about inflation in 2022.
