American consumers are increasingly uneasy as President Donald Trump reinstates tariffs on a variety of trade partners, marking a shift in economic sentiment.

According to new data, expectations for economic performance have diminished significantly, contrasting sharply with the optimism that accompanied Trump’s election in November.

Recent findings from the Conference Board indicate a substantial drop in consumer confidence, the largest since August 2021, when the Delta variant of COVID-19 was spreading rapidly across the nation.

The Conference Board reported that respondents in their survey cited trade and tariffs as pressing concerns, similar levels to those observed during Trump’s initial term in 2019.

A University of Michigan survey also highlighted that nearly 40% of consumers spontaneously mentioned tariff issues—up from less than 2% pre-election—with overall confidence declining by 10%.

Survey director Joan Hsu noted that all five indicators of the Michigan index deteriorated, a rare occurrence.

She emphasized that the downturn was pervasive across various demographic groups and economic dimensions, with people expressing less confidence in their personal financial situations as well as in current and future business conditions.

Some consumers expressed relief that the presidential elections concluded without extended disputes, which were prevalent during Trump’s contest against Joe Biden in 2020. Certain executives lauded Trump’s agenda emphasizing deregulation; however, tariffs have been a central focus of his campaign, having introduced a 10% duty on imports from China while threatening additional tariffs of up to 25% on goods from Canada and Mexico.

Plans for tariffs on all steel and aluminum imports and reciprocal duties on various partners have also been indicated.

Economists caution that increased costs from tariffs could lead to higher consumer prices.

As the U.S. grapples with inflation exacerbated by the pandemic, retail prices for certain commodities, such as eggs, have surged by more than 50% over the past year, reflecting the broader rise in living costs.

A February Conference Board survey revealed an increase in consumer inflation expectations, rising from 5.2% to 6% for the month.

Despite inflationary pressure, consumer spending remains resilient.

Data from the Commerce Department shows that retail sales declined in January from the holiday period but still marked a 4.2% increase year-over-year, unadjusted for inflation.

Home Depot, the largest home improvement retailer in the U.S., announced expectations that consumers will remain in a favorable position as its sales have returned to growth after two years of decline.

However, some consumer goods companies are noticing signs of weakness in demand.

Linda Rendle, CEO of Clorox, remarked at a New York consumer analyst conference that consumers are under significant stress, indicating a trend where they are maximizing their use of household products.

She noted that consumers are filling trash bags to the brim and using the last drop from spray containers, highlighting a cautious approach to spending.

André Schulten, CFO of Procter & Gamble, stated that a challenging environment persists, owing to fluctuating production costs, currency prices, and changing consumer dynamics.

He underscored that the existing and proposed tariffs introduce additional volatility that they are closely monitoring, affecting raw material and finished product shipping costs and consumer behavior.

The Conference Board's survey also indicates a decline in consumer expectations regarding business conditions, the job market, and stock market outlook.

Torsten Slok, chief economist at Apollo Global Management, commented that consumers are wary of what appears to be a stagflation scenario, characterized by job losses amid slow growth but rising inflation.