Taken together, the combination of increased concern about the effects of Trump’s economic proposals and heightened inflation are a warning sign for the new administration as it tries to deliver on its promise of broad tariffs on imported goods, tax cuts and mass deportations of immigrants.

Consumers’ attitude toward the economy dipped during President Trump’s first month in office, according to the University of Michigan’s monthly consumer survey released Friday.  Consumer sentiment

The Consumer Sentiment Index hit its lowest reading since November 2023. U.S. consumer sentiment dropped more than expected in February to a 15-month low and inflation expectations rocketed as households worried that President Donald Trump’s plans for steep and broad-based tariffs would eat into their purchasing power.

Hot inflation has raised the stakes of President Trump’s plans to escalate his use of tariffs on the country’s biggest trading partners, risking even higher consumer prices and pushing back the prospects of the Federal Reserve lowering interest rates soon.

President Donald Trump doubled down on his extraordinary push for more balanced trade, ordering on Thursday that agencies should investigate plans for new reciprocal tariffs that could boost America’s revenue — but could also ignite a global trade war and add to America’s rebounding inflation problem.

Inflation expectations surged on concerns that President Donald Trump’s tariffs will translate into higher prices, according to the UM survey.