Fri Apr 11 21:43:51 UTC 2025: ## Consumer Confidence Crumbles Amidst Trump’s Trade Wars

**Washington, D.C.** – Consumer confidence in the United States has plummeted to its lowest point since the COVID-19 pandemic, driven by anxieties over President Trump’s escalating trade wars and the prospect of rising unemployment. The University of Michigan’s Consumer Sentiment Index fell 11 percent in March to 50.8, marking the fourth consecutive monthly decline. This represents a staggering 34 percent drop over the past year.

The survey revealed widespread pessimism across all demographics, regardless of age, income, education, location, or political affiliation. Significantly, the percentage of respondents anticipating rising unemployment reached its highest level since the 2009 Great Recession.

The administration’s aggressive tariff policies, which include a 10 percent baseline tariff on most countries and significantly higher rates on goods from China, Canada, and Mexico, are widely blamed for the downturn. China has retaliated with its own tariffs, exacerbating the situation. While the White House maintains confidence in the long-term benefits of the tariffs, the public is far less optimistic, with 67 percent believing the government is failing to manage inflation and unemployment.

The economic impact extends beyond consumer sentiment. Financial markets reflect growing unease, with investors selling off US debt and the dollar falling to a three-year low against the euro. BlackRock CEO Larry Fink even suggested the US might already be in a recession.

Rising inflation expectations are another major concern. Consumers now anticipate long-term inflation to reach 4.4 percent, the highest since 1991. This figure surpasses even the recent official report showing a decline in inflation, leading economists to warn that intensifying trade wars could reignite inflationary pressures. The Federal Reserve, which closely monitors inflation expectations, is likely to view this development with serious concern.

The partisan divide in consumer sentiment is stark, with Republicans exhibiting significantly higher confidence than Democrats. However, even within these groups, confidence has taken a steep dive. Independents show the lowest confidence levels since the end of the Biden presidency. The overall picture paints a concerning portrait of a nation facing economic uncertainty amidst a turbulent trade environment.

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