The preliminary reading of the University of Michigan Surveys of Consumers’ closely watched consumer sentiment index, released on Friday, declined 2.7 percent on a monthly basis to 50.8, the lowest since July 2022. Since January, sentiment has tumbled nearly 30 percent.
“Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60 percent in April; uncertainty over trade policy continues to dominate consumers’ thinking about the economy,” said Surveys of Consumers Director Joanne Hsu.
Americans have largely taken a sour view about where the economy is headed in the wake of the Trump administration’s imposition of huge import duties, which threaten to slow growth and push up prices.
In recent weeks, the White House has pulled back on its most draconian policies, though average duties are still high by historical standards.
Trump had slapped 145 percent tariffs on all imports from China, a move that effectively suspended trade with the United States’ third-largest trading partner in goods.
But on Monday, the two countries said they had reached a deal that would lower US tariffs to 30 percent, while China would cut its duties on US exports to 10 percent from 125 percent. (AP/Reuters)
