Consumer sentiment worsens despite Trump’s rollback of tariffs, survey says

Consumer sentiment declined for the fourth straight month in May, reaching near its lowest point since a major inflation period three years ago, according to University of Michigan data. Despite President Trump’s recent easing of tariffs – including a U.S.-China trade agreement and rollbacks on duties affecting various countries and sectors – consumer attitudes remained pessimistic, likely due to lingering inflation fears and recession concerns sparked by earlier tariff policies.
While the economy showed signs of stability, such as easing inflation and steady job growth, ongoing tariffs and warnings from retailers like Walmart about price hikes on imports have kept consumers cautious. Retail sales slowed, suggesting weaker consumer spending, which could threaten broader economic growth.