Companies have warned about rising prices, and markets have shown significant declines. President Donald Trump’s tariff plans, although not fully implemented yet, are already causing economic strain for Americans. The University of Michigan’s consumer survey revealed a drop in economic sentiment ahead of Trump’s ‘Liberation Day’ on April 2. The consumer reading decreased by 11.9% from February and 28.2% from the previous year. Inflation fears largely contributed to this downturn, with consumers worried about potential economic pain due to ongoing policy developments, including Trump’s tariffs. Federal Reserve Chair Jerome Powell noted during a March press conference that poor consumer sentiment, particularly regarding high grocery prices, is partly due to policy changes under the Trump administration. Powell also mentioned that part of the Federal Open Market Committee’s inflation projections is influenced by Trump’s tariffs. Trade experts suggest that while some companies might absorb tariff costs, Americans are likely to face higher prices on goods like groceries and cars. This uncertainty is affecting markets, businesses, and consumers.
— new from Business Insider
