Americans are increasingly disheartened by the economy, sparking a tightening of their purse strings that could signal an impending slowdown. As new tariffs roll out from President Trump, personal spending has dipped, particularly on non-essential items like dining out. Many citizens, regardless of their political views, express concerns about their finances, with a recent University of Michigan survey indicating a continued downward shift in consumer sentiment.
Dan Fitch, a nurse from Portland, describes his grim outlook, noting, “I don’t see things moving in a positive direction. The cost of living has already been elevated for a while. Adding on tariffs — I don’t see how that positively affects anybody.” In a bid to save money, Fitch has even resorted to cutting his sons’ hair at home, showcasing the lengths families are going to maintain their financial stability.
Furthermore, a CBS News poll reflects that many Americans feel President Trump is prioritising tariffs over reducing prices. Despite a reduction in inflation since 2022, the prices consumers face remain high and could rise further due to tariffs. Kathy Merkler from Tampa struggles with her grocery budget, lamenting, “I’m paying the same amount of money for fewer bags of groceries.” She is also cautious about her car’s future and the impact of impending tariffs on vehicle prices.
The current situation might be stalling the consumer-driven engine of growth for the U.S. economy. Dan North, an economist at Allianz Trade North America, highlights growing insecurity among consumers facing increased credit card bills and less disposable income, suggesting a pullback in spending. While there was a brief surge in purchases before tariffs took hold, experts predict this spike is unsustainable.
Individuals like Dawn Woodward are now prioritising savings over spending, having realised that many perceived necessities are, in fact, optional. The recent rise in personal savings to 4.6% is a reflection of the prevailing caution among Americans as they brace for the full impact of tariffs on their finances.
Americans are experiencing growing concerns about the economy due to new tariffs imposed by President Trump, leading to decreased consumer spending and a tightening of budgets. A survey indicated falling consumer sentiment and increasing worries about personal finances, with a significant portion of the population prioritising savings over spending. The threat of higher prices from tariffs is pushing families to reconsider their financial choices and plan for future expenses.
In conclusion, the reintroduction of tariffs under President Trump is contributing to a persistent sense of unease among Americans regarding the economy. With personal spending declining and many families tightening their budgets, the potential for an economic slowdown looms large. Financial conveniences are being sacrificed as consumers respond to growing concerns about overall financial stability and affordability, resulting in an increased focus on savings rather than expenditures.
Original Source: www.npr.org
