Consumer confidence continues to struggle in the aftermath of President Trump’s extensive tariffs on imports from various countries, even after a temporary relief he offered to shoppers last month.
A recent consumer survey from the University of Michigan indicated that buyer sentiment, along with assessments of current conditions and future expectations, has declined for the fourth consecutive month. However, this year’s decline doesn’t seem as severe compared to earlier months.
“Almost three-quarters of consumers mentioned tariffs voluntarily in April,” stated Joanne HSU, the director of consumer research. In her review of the survey findings, she noted, “Ongoing uncertainty regarding trade policy heavily influences consumer perceptions of the economy.”
Trump introduced his “liberation day” tariffs in early April but later announced a partial suspension for 90 days with several countries on April 9th, giving leaders time to negotiate more favorable trade agreements for the United States.
HSU observed a “very small increase in emotions” following the suspension announcement, yet it did little to counteract the earlier decline.
Since January, emotional sentiment has dropped nearly 30%, hitting 50.8% in May.
The University of Michigan’s latest survey was conducted from April 22nd to May 13th. Notably, the US and China agreed on another 90-day suspension on May 12th, which might not be reflected in the survey results.
