Trump trade war: US consumer confidence hits 5-year low amid tariff concerns

Americans’ confidence in the economy slumped for the fifth straight month to the lowest level since the onset of the Covid-19 pandemic, as anxiety over the impact of tariffs takes a heavy toll on consumer expectations for future growth.

The Conference Board said on Tuesday that its consumer confidence index fell 7.9 points in April to 86, its lowest reading since May 2020. Nearly one-third of consumers expect hiring to slow in the coming months, nearly matching the level reached in April 2009, when the economy was mired in the Great Recession.

The figures reflect a rapidly souring mood among Americans, most of whom expect prices to rise because of the widespread tariffs imposed by President Donald Trump. About half of Americans are also worried about the potential for a recession, according to a survey by Associated Press-NORC Center.

“The three expectation components – business conditions, employment prospects, and future income – all deteriorated sharply, reflecting pervasive pessimism about the future,” Conference Board senior economist Stephanie Guichard said in a statement.

Trump’s tariff plans have unnerved investors, sending market volatility soaring and consumer confidence plunging.

Confidence in the financial markets has also tanked, according to Guichard, with 48.5 per cent of consumers expecting stock prices to fall over the next 12 months – the highest share since October 2011.

In another worrying sign, average 12-month inflation expectations reached seven per cent this month which, Guichard said, was the “highest since November 2022, when the US was experiencing extremely high inflation”.