U.S. Consumer Confidence Drops To Lowest Level In 4 Years As Fears Mount About Trump Tariffs

by Angie SchlagerFebruary 26, 2025, 2:14 pmNews >

The Conference Board’s Consumer Confidence Index slipped to 98.3 for February from 105.3 in January. Consumer confidence declined after President Donald Trump threatened additional tariffs against U.S. trading partners.

The Conference Board said in a Tuesday report that officials’ responses to the survey expressed concern over inflation, with mentions of trade and tariffs. On Monday, Trump said that tariffs against Canada and Mexico “will go forward” in March.

“The tariffs are going forward, on time, on schedule,” Trump told reporters at the White House, referring to a 25% levy on imports from Canada and Mexico that could take effect next week.

Trump recently admitted that the tariffs could lead to inflation.

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The Conference Board’s report said Americans’ short-term expectations for income, business and the job market fell 9.3 points to 72.9. The Board noted that a reading under 80 could signal a potential recession in the future.

“This increase likely reflected a mix of factors, including sticky inflation but also the recent jump in prices of key household staples like eggs and the expected impact of tariffs,” said Stephanie Guichard, the Board’s senior economist for global indicators. “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019.”

A threatened tax on imported steel and aluminum could put more upward pressure on grocery prices, which have started climbing. In January, egg prices jumped more than 15% as bird flu continued to pressure the poultry industry.

The Board also noted in the Tuesday report that “views of current labor market conditions weakened.” “Consumers became pessimistic about future business conditions and less optimistic about future income.”