US consumer sentiment slides to lowest in 3 years as trade war raises anxiety about inflation

WASHINGTON (AP) — U.S. consumer sentiment fell slightly in May for the fifth straight month as Americans increasingly worry that President Donald Trump’s trade war will worsen inflation.

The preliminary reading of the University of Michigan’s closely watched consumer sentiment index, released Friday, declined 2.7% on a monthly basis to 50.8, the lowest since July 2022. Since January, sentiment has tumbled nearly 30%.

Americans have largely taken a sour view about where the economy is headed in the wake of the Trump administration’s imposition of huge import duties, which threaten to slow growth and push up prices. In recent weeks, the White House has pulled back on its most draconian policies, though average duties are still high by historical standards.

Trump had slapped 145% tariffs on all imports from China, a move that effectively suspended trade with the United States’ third-largest trading partner in goods. But on Monday, the two countries said they had reached a deal that would lower U.S. tariffs to 30%, while China would cut its duties on U.S. exports to 10% from 125%.