University of Michigan Survey: US Consumer Sentiment Declines as Price Expectations Rise Due to Tariffs

Consumer sentiment in the U.S. dropped by 10.5% in March and 27.1% over the past year, according to the University of Michigan. Inflation expectations among consumers increased to 3.9%, representing the largest monthly rise since 1993, as reported in the preliminary survey. President Trump imposed 25% tariffs on steel and aluminum imports, prompting retaliatory actions from Canada and the EU, which have impacted consumer confidence. Bill Adams, chief economist at Comerica Bank, cautioned that concerns regarding rising inflation expectations could influence the Federal Reserve's interest rate decisions.