US consumer sentiment hits new low in May as Trump's tariff policy fuels economic anxiety

US consumer sentiment hit a new low in May, largely due to President Donald Trump's new tariffs. According to Yahoo Finance, the ongoing effects of his trade policy are exerting significant pressure on the market.

The latest data from the University of Michigan revealed that the consumer confidence index in the United States dropped to 50.8, marking the second-lowest level in the survey’s history. This represents a decline from the previous month's reading of 52.2. 

Uncertainty surrounding the newly elected President's trade policies continues to stir unease among the public. Nearly 75% of respondents identified import duties as the main reason for their changed view of the current economic situation, up from 60% in April. 

Moreover, pessimism regarding inflation expectations has risen, with forecasts for consumer price growth in the US over the next year climbing up to 7.3%. This is the highest rate since 1981, according to experts. Just four months ago, Americans anticipated inflation of only 3.3% over the next year.