TechFlow news, on March 14, according to Jinshi News, U.S. consumer confidence plummeted in March and inflation expectations surged as concerns mounted that President Trump's sweeping tariff policies would drive up prices and weaken the economy. Trump's tariffs have triggered a trade war.
The University of Michigan's consumer sentiment index released Friday dropped to 57.9 from the final February reading of 64.7. The index has now erased all gains made since Trump won the election in November last year. Consumers' one-year inflation expectations jumped to 4.9% from 4.3% in February. Over the next five years, consumers expect inflation to reach 3.9%. The shock from tariffs and escalating trade war have disrupted financial markets, sparking a stock market sell-off, which has also contributed to the downturn in sentiment this month. A poll showed that 57% of respondents found Trump's efforts to revive the economy too unstable, including deep cuts in government spending and mass layoffs of federal workers, while 53% believed the tariff war does more harm than good.
