The tariffs applied to the main trading partners of the United States have come into effect and may result in a rise in prices, likely impacting consumer spending. According to a recent survey, there was a 12 percentage point decline in the conditions for purchasing expensive items compared to the previous month. Costs are expected to rise at an annual rate of 3.3 percent over the next five to ten years, slightly above previous projections. Uncertainty about inflation prospects has increased as President Donald Trump moves forward with the imposition of tariffs.
"U.S. consumer confidence fell to a seven-month low at the beginning of February due to an increase in short-term inflation expectations in the U.S. related to concerns about the tariffs that President Donald Trump has threatened to impose on partner countries," reported the University of Michigan, which recorded a drop of 3.3 points in the preliminary confidence index, standing at 67.8. This scenario is reflected in economic indicators, as employment growth slowed in January following annual government revisions that revealed less dynamism in the labor market last year than previously estimated.
Consumers show negative expectations, reflected in a reduction in both current conditions and future expectations. Confidence in personal financial situations has decreased to the lowest level since October 2023, falling below predictions from economists surveyed by Bloomberg. Prices are expected to rise annually by 4.3 percent in the coming year, an increase from the previous month, according to recent data.
The pessimistic sentiment has spread across all political affiliations, showing a weakening in immediate confidence among Republicans and continued concerns among Democrats regarding Trump's economic policies. Both Republicans and Democrats have experienced declines in confidence, with the latter seeing the most pronounced drop, reaching its lowest level since 2020. And although expectations regarding the economy one year ahead have also declined, confidence among political independents has also been affected.
On the other hand, unemployed Americans are facing greater difficulties finding work in the current economic context.
