Consumer Sentiment Declines Amid Trump's Tariffs, Economists Warn of Recession

President Trump's recent tariffs and ongoing trade war have created significant uncertainty, leading to declining consumer sentiment and increased recession risks, as reported by multiple sources. Economic indicators show that while job growth and unemployment rates have remained stable, consumer confidence has dropped to its lowest point since the early COVID-19 months, fueling concerns about reduced spending and potential economic slowdown. Wall Street analysts warn of higher prices and elevated recession odds, with major firms raising their probability estimates for a downturn. Companies are already announcing price hikes in response to tariffs, compounding worries about inflation and household budgets. Despite some pauses in certain tariffs, the average effective tariff rate for U.S. consumers is now the highest since 1909, and mixed messages from the White House have further contributed to market unease. The Federal Reserve remains cautious about rate cuts, given persistent inflation concerns and the broader economic risks posed by trade disputes.