The domestic fallout from Trump’s tariffs, in 3 charts

President Donald Trump’s announcement of sweeping tariffs has sparked concerns across various sectors of the economy, signaling a period of anxiety or panic. Consumer confidence has hit record lows, leading to panic buying of goods that are likely to see price increases, such as cars and electronics. Businesses are already anticipating a slowdown in production, contradicting Trump’s goal of boosting American manufacturing. A decline in consumer and business confidence could hinder economic growth and hiring, making it difficult for Trump to achieve his objectives.

While it’s too early to predict a recession due to the tariffs, there are clear signs of economic shifts in the US. Consumer confidence, as measured by the University of Michigan’s index, has dropped significantly post-tariffs, affecting Americans’ purchasing power. Economists anticipate a pullback in spending in the long term, despite a temporary surge in purchases. The tariffs have also impacted American manufacturing, with surveys indicating a slowdown in production and business activity.

Trump’s tariff policies, aimed at reviving domestic manufacturing and correcting trade imbalances, have faced criticism from economists and have not yielded the desired results. Manufacturing activity has decreased following the announcement of tariffs, with a negative outlook from industry surveys. American manufacturers are struggling to plan for the future amidst uncertainty, despite efforts to showcase investments in US factories. Trump’s insistence on tariffs as a solution to trade issues remains unchanged, despite concerns raised by industry leaders and consumers.