Trump's tariff trade turmoil has consumers panicking.
Consumer confidence has reached multi‐year lows driven by escalating trade tensions, persistent inflation fears, and widening policy uncertainty. In March, the Conference Board’s Consumer Confidence Index (CCI) plunged 7.2 points to 92.9—a four‐year low and the fourth consecutive monthly decline. Shortly thereafter, the University of Michigan’s preliminary Consumer Sentiment Index fell 11% in April to 50.8, marking the second‐lowest reading on record and undercutting even Great Recession and COVID‐era lows.
Consumer Price Index CPI in the United States increased to 319.799 points in March from 319.082 points in February of 2025. The annual inflation rate in the US eased to 2.4% from 2.8% and below market expectations of 2.6%. On a monthly basis, the CPI decreased by 0.1%, defying market expectations of a 0.1% increase.
Source: tradingeconomics.com | U.S. Bureau of Labor Statistics
These sentiment shocks have translated into real‐world impacts: retail foot traffic dropped 4.3% in early March, and major retailers have begun trimming profit forecasts as cautious consumers pull back on discretionary spending.
“Tariff surcharge” appears on receipts
Different e-commerce websites and US companies are introducing ‘Tariff Surcharge’ and announcing new prices on their websites and in letters to consumers.
“My wife's friend bought a bunch of summer clothes for her kids from Fabletics and they hit her with a TARIFF SURCHAGE cost. I'm sure this is going to be the new norm when buying.” A user posted on Reddit about discovering a tariff surcharge on their bill.
Ryan Babenzien, founder of Jolie Skin, which manufactures filtered water showerheads, has confirmed that he will impose a special “Trump Liberation Tariff” on products purchased by customers.
In a post on LinkedIn, he stated: “Technically, we are not raising prices, but the tariff will make Jolie more expensive for US consumers. We believe transparency is key, and I fully support Trump's decision to impose this tariff on all US consumers.”
“Although we have been planning to increase tariffs at Jolie for over a year, we never anticipated it would become this extreme.”
“I love it (not the tariff but the transparency). I hope no one disguises this charge. This is a tax and it should be reflected as such.” A user who purchased a product with the tariff surcharge commented.
Temu and Shein announce price increases
Chinese e-commerce platforms Shein and Temu have informed U.S. consumers that they will be adjusting their prices starting April 25th.This is the latest development in the companies' response to Trump's announcement of higher tariffs on goods from China, as well as the elimination of the minimum exemption tax credit (MEPC).
“We are doing everything we can to keep our prices low and minimize our impact on you. Our team is working hard to improve your shopping experience and stay true to our mission of making fashion accessible to everyone. SHEIN added in the notice, but the company did not disclose the magnitude of the price adjustment, but encouraged users to “buy at today's prices”.
Temu issued an almost identical notice saying that its operating expenses have risen and hence it will increase prices from next week.Temu added that prices will remain unchanged until then.
Shein and Temu have grown rapidly in the United States thanks to “de minimis” exemptions, which allow goods priced under $800 to enter duty-free. However, Trump's recent crackdown on low-value imports has forced these retailers to change their business model.
While pockets of resilience remain—particularly among younger consumers and in certain essential categories—the broad pullback in sentiment and spending underscores heightened risks for economic growth in the months ahead.
22 Apr, 2025
