US Consumer Confidence Crashes as Trade War Sparks Economic Fears

Consumer sentiment in the US took a nosedive in April, marking the steepest decline since the 1990 recession, driven by chaos from ongoing trade policies. A key index tracking Americans’ financial outlooks plummeted 32% since January, reflecting widespread unease.

The consumer sentiment index dropped to 52.2 in April from 57 in March, the lowest since summer 2022 when inflation hit 9%. Expectations of inflation also surged, jumping from 5% in March to 6.5% in April—the highest since 1981. This signals growing concern about rising prices and economic uncertainty tied to trade policy shifts.

Despite claims that tariffs would boost revenue without hiking costs, many Americans remain skeptical. The trade war has rattled markets, with stock and bond sell-offs reflecting investor jitters. While recent comments about scaling back tariffs briefly lifted markets, consumer confidence continued its four-month slide.

Compounding the issue, Americans now anticipate slower income growth, which could curb spending and further slow the economy. With inflation fears rising and incomes expected to stagnate, consumers are bracing for tougher times ahead.