Consumer attitudes worsened in April as President Donald Trump’s new tariffs triggered market upheaval and warnings of a possible recession, University of Michigan survey data on Friday showed. Sentiment soured more than economists expected.
The survey marked the fourth consecutive month of dampening consumer attitudes, data showed.
Consumers expect inflation to worsen, the survey said. Year-ahead inflation expectations surged from 5% last month to 6.7% this month, the highest reading since 1981.
Sentiment worsened among consumers across all demographics of age, income, education, geographic region, and political affiliation, data showed.
Trump on Wednesday paused so-called “reciprocal tariffs” on most U.S. trade partners, but the White House also raised its cumulative tariffs on Chinese goods to 145%. Officials also left in place across-the-board 10% tariffs on most imported goods.
On Friday morning, China retaliated with 125% tariffs on U.S. goods, escalating a trade war between the world’s two largest economies.