US Consumer Sentiment Hits 3-Year Low Amid Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. consumer sentiment declined for the fifth consecutive month in May, hitting its lowest point since July 2022. Concerns over inflation, fueled by President Trump’s aggressive trade policies, are driving consumer anxiety. A recent tariff deal between the U.S. and China has eased some pressure, but uncertainty remains.
Consumer Sentiment Drops to 3-Year Low: Quick Looks
- Consumer sentiment index fell 2.7% in May, reaching 50.8 — the lowest since July 2022.
- Sentiment has plunged nearly 30% since January, reflecting growing economic pessimism.
- Americans are increasingly worried about inflation, especially as tariffs raise import prices.
- Trump’s trade war has hit consumer confidence hard, despite a recent deal with China.
- Tariffs on Chinese imports were 145%, but a new agreement lowers them to 30%.
- China agreed to slash retaliatory tariffs to 10%, down from 125%.
- The University of Michigan’s index is a key measure of consumer expectations.
- Experts warn inflation could rise further, potentially weakening consumer spending.
- Despite easing of tariffs, duties remain high by historical standards.
- Economic growth projections have been downgraded, with fears of a consumer pullback.
US Consumer Sentiment Hits 3-Year Low Amid Tariffs
Deep Look
Consumer confidence across the United States fell for a fifth consecutive month in May, reaching its lowest level in nearly three years. According to preliminary data released Friday by the University of Michigan, the consumer sentiment index dropped 2.7% from April, landing at 50.8, a figure not seen since July 2022.
Since the beginning of the year, sentiment has plunged nearly 30%, illustrating growing anxiety over inflation and economic stability — much of it tied to President Donald Trump’s aggressive trade policy.
Tariff Woes Deepen Consumer Anxiety
The decline in sentiment comes amid intense consumer concern over inflation, driven in large part by sweeping tariffs imposed by the Trump administration. Earlier this year, Trump levied a 145% tariff on all imports from China, effectively cutting off trade with one of America’s largest commercial partners.
While aimed at pressuring China on technology transfers and intellectual property rights, the tariffs also raised costs for American consumers, who have begun to feel the squeeze in everyday items ranging from electronics to household goods.
“This is exactly what we feared,” said one analyst. “Tariffs that steep ripple through the economy. Eventually, consumers get hit — and they’re feeling it.”
A Fragile Reprieve
This week brought some moderate relief as the U.S. and China announced a new deal to scale back tariffs. Under the agreement, U.S. tariffs will drop from 145% to 30%, while China will reduce its retaliatory tariffs on American goods to 10%, down from a staggering 125%.
Though the deal slightly eased tensions and sparked hope for better economic conditions, economists warn that tariff levels remain historically high and could still stifle trade, drive up prices, and ultimately undercut consumer purchasing power.
The University of Michigan report highlights that inflation expectations remain elevated, and many Americans fear long-term economic instability if policy uncertainty continues.
Political and Economic Stakes
The continued drop in consumer sentiment presents a political challenge for President Trump, whose economic platform hinges on aggressive protectionism and trade realignment. While supporters argue the tariffs are necessary to defend U.S. industries, critics point to the emotional and financial toll on average households.
As the 2026 midterms loom, falling consumer confidence may become a key issue, especially as voters begin to feel the tangible effects of rising prices and diminished economic optimism.
Despite the tariff rollbacks, Americans are still facing higher grocery bills, elevated fuel costs, and fears that wage gains won’t keep up with inflation.
Looking Ahead
Economists and business leaders alike are closely watching how sentiment plays out over the coming months. If confidence continues to slide, it could trigger reduced consumer spending, which makes up more than two-thirds of the U.S. economy.
The University of Michigan is expected to release its final consumer sentiment numbers for May at the end of the month. Meanwhile, federal policymakers and trade officials face pressure to stabilize market conditions and rebuild trust among American consumers.
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