Americans Frustrated by Trump’s Tariffs and Economic Uncertainty

Americans Frustrated by Trump’s Tariffs and Economic Uncertainty

Beyond rising prices, American consumers are growing weary of the uncertainty caused by President Donald Trump’s sweeping tariffs.

On March 4, Morris Azadi walked into a car dealership in North Miami Beach, Florida, intending to buy a new vehicle. But the 69-year-old left empty-handed, too frustrated and unsure about Trump’s latest tariffs on imports from key trade partners—including automobiles from Canada and Mexico.

"I’ve had enough," Azadi said.

By the afternoon of March 5, the administration had postponed tariffs on Canadian and Mexican cars for another month to "ensure that the three largest U.S. automakers do not suffer financial harm." But many Americans remain exasperated by the whiplash of Trump’s tariff policies.

Earlier this year, Trump threatened to impose a 25% tariff on Mexican and Canadian goods, triggering fears of widespread price hikes—only to back off at the last minute. On March 4, the tariffs were reinstated, alongside a 10% additional tariff on Chinese goods, raising total duties on Chinese imports to 20%. More tariff increases are expected in April.

These measures impact nearly $2.2 trillion in annual two-way trade, affecting the prices of everyday goods for American consumers.

The rapid and unpredictable changes are weighing heavily on public sentiment. Some Americans are cutting back on spending, a trend that could slow economic growth.

A Reuters/Ipsos poll found that 51% of Americans disapprove of Trump’s economic policies, up from 41% when he first took office.

When Trump’s tariffs on Canada, Mexico, and China took effect on March 4, Azadi—who owns a construction company with 35 employees—called his suppliers in China and canceled nearly all of his orders for 10 shipping containers of building materials.

Azadi said he is also considering layoffs, fearing the construction industry will take a severe hit from Trump’s economic policies.

"He doesn’t understand the economy," Azadi said.

A University of Michigan survey in February found that consumer spending in January saw its sharpest monthly decline in four years, while consumer sentiment dropped nearly 10%. Respondents expected inflation to reach 4.3% this year, the highest since November 2023.

The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, rose 2.5% in January compared to a year earlier.

"Consumers feel a lot of uncertainty and concern about these major policy shifts, so it’s not surprising that they’re pulling back on spending," said Marc Giannoni, chief U.S. economist at Barclays.

Richard LeBaron, a 74-year-old retired diplomat in rural Virginia, is delaying major purchases like renovating his second home or buying a new car.

"In uncertain times, you don’t know if you can make confident financial decisions," he said.

LeBaron watched his stock portfolio take a steep hit on March 4 as tariffs took effect. He also worries about the local housing market, which depends on Washington, D.C., residents buying vacation homes in Virginia. Many federal employees are growing anxious about job security as the Elon Musk-led Office of Government Efficiency (DOGE) implements aggressive budget cuts.

News that the administration had postponed auto tariffs did little to reassure LeBaron.

Analysts warn that a prolonged downturn in the stock market or a drop in home values could shake even the wealthiest Americans and have widespread economic consequences.

Alex Clark, 50, had planned a special summer trip with his son to celebrate his graduation.

"But now, I’m not sure how special it will be," said Clark, who owns a winery in Brooklyn, New York.

Clark also said the tariff uncertainty would make him scrutinize everyday purchases, from tomatoes to imported strawberries.

"Consumers are already nervous, and now they’re about to get hit with real price shocks," said Ryan Sweet, an economist at Oxford Economics. "The White House is rolling out policy announcements at a dizzying pace, leaving people unsure of what to expect. Will the tariffs stick? Will they be reversed? There’s little they can do to prepare."

Grocery prices have been rising in recent months. Food costs, already up 28% since 2020, increased another 0.5% from December to January—the largest monthly jump in over two years.

Economists warn that prices could climb even faster under current conditions. Viridiana Hernández Fernández, an agricultural economist at the University of Iowa, estimated that avocado prices alone could rise by 20% in the coming weeks.

"About 90% of avocados sold in the U.S. come from Michoacán, Mexico," she said. "Finding alternative suppliers is difficult—not just because Mexico is the closest source, but because it’s the only region that grows avocados year-round. Consumers could be paying an extra 50 cents per avocado."

At a Walmart in Washington, avocados, bell peppers, and tomatoes—among the top imports from Mexico—were fully stocked by midday on March 4. But 24-year-old Ingrid Melgar ignored them, opting for cheaper, non-perishable items like canned vegetables and crackers instead.

"No avocados, no strawberries," said Melgar, a mother of three. She now spends about $250 per week on groceries, nearly double what she spent just a few years ago. "We’ve stopped buying fresh fruits and vegetables because the prices are too high, and they keep getting worse."

Tera Vincent, a 46-year-old Democrat in Louisville, Kentucky, retired a year and a half ago after working as a probation and parole officer. She had planned to remodel her kitchen and buy new appliances, but those plans are now on hold.

"As a new retiree, I have to watch my spending carefully. I worry about rising grocery prices—from eggs to meat and produce," Vincent said.

"I’m afraid to spend money because I don’t know what the next 10 years will look like."

Political divisions are also shaping how Americans perceive inflation and rising prices. Nearly 60% of households believe tariffs will make everyday goods more expensive, but Democrats are significantly more concerned, according to a Harris Poll/Bloomberg survey.

About 76% of Democrats believe tariffs will drive up prices, compared to 55% of independents and 45% of Republicans.

Terin Stovall, a Republican from Columbia, Tennessee, said the shifting tariff announcements have not changed her spending habits.

"I believe he has a reason for his decisions," said Stovall, 36, a business executive. "He’s making America more self-sufficient."

Stovall said she does not expect inflation to be worse than under President Joe Biden, when her grocery bills soared. She recalled the economic boom during Trump’s first term and hopes to see a repeat.

Commerce Secretary Howard Lutnick said on March 4 that while short-term price volatility is possible due to tariffs, domestic manufacturing will ultimately compensate for it.

Mateo Ilic, a 24-year-old sports administrator in Florida, decided to spend $150 at Best Buy to replace a broken gaming accessory. A PlayStation controller now costs $75—up from $49 just eight months ago. Best Buy has warned customers that tariffs will likely push prices even higher.

Ilic admitted he is conflicted about Trump’s tariffs. On one hand, he worries about low-income Americans struggling with rising costs. On the other hand, he believes tariffs could benefit the U.S. economy in the long run by revitalizing domestic manufacturing.

He also sees tariffs as a temporary pressure tactic—one Trump is using to force foreign governments to cooperate on issues like drug trafficking and illegal immigration.

"I assume that once these issues are resolved, the tariffs will be lifted," Ilic said. "But the problem is, once prices go up, they don’t come back down."

(Sources: The Washington Post, WSJ, AFP, Reuters)

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