BREAKING: Consumer Sentiment Plunges to Near-Record Low as Trump’s Tariff War Batters Public Confidence

American consumers are losing confidence — fast.

The University of Michigan’s consumer sentiment index dropped a staggering 11% this month, landing at 50.8 — the second-lowest level ever recorded since the survey began in 1952. Notably, this month’s number is lower than any point reached during the Great Recession, underscoring the depth of anxiety Americans are feeling in the face of rising prices and economic instability.

The sharp drop is being attributed to growing pessimism about the U.S. economy under President Donald Trump’s latest round of sweeping tariffs, which were announced last week. According to the University of Michigan’s report, the decline in sentiment was “pervasive and unanimous,” impacting Americans of all income levels, education backgrounds, regions, and political leanings.

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Consumer sentiment has now plunged more than 30% since December 2024.

The tariffs — part of Trump’s ongoing trade war that has escalated throughout 2025 — are already rippling through the economy, leading to price hikes on everything from home appliances to personal care products. U.S. businesses, large and small, are responding with surcharges and product price increases, directly passing the added costs onto consumers.

Among them is Dame, a sexual wellness brand, which recently instituted a $5 “Trump tariff surcharge” on all online orders. CEO Alexandra Fine told CBS MoneyWatch that the surcharge doesn’t fully offset the new costs, but it’s a necessary step as the company navigates the financial pressure. “Our whole industry is in China, so we've already seen the impact,” she said.

Honeywell Building Automation, which provides safety and control systems for commercial buildings, announced a 6.4% tariff-related surcharge on many of its hardware products in early March. The company noted that the increase was a direct response to new tariffs on imports from China, Mexico, and Canada. Honeywell has pledged to remove the surcharge if and when the tariffs are lifted.

Meanwhile, Amazon CEO Andy Jassy warned this week that a broad swath of consumer goods sold through the e-commerce giant — especially from third-party sellers — are likely to become more expensive in the coming weeks due to tariffs.

The Trump administration’s tariff policy has turned into a slow-moving economic storm — one that’s already begun to erode consumer spending, tighten household budgets, and sow uncertainty across U.S. markets.

Americans are not just feeling the impact — they’re bracing for more.