Are Americans on the rope and about to get knocked out?

[theking]

The American consumer is on the ropes. Tariffs — and anxiety — could deliver the knockout blow
America’s economic engine is running a little rough these days.

Consumer confidence is cratering, debt burdens are growing, people are worrying more about their jobs and they’re pulling back on some spending out of caution.

Still, while the overall fundamentals that prop up the consumer remain solid, the risks have heightened significantly.

Limited Time Offer - Electric Car Accessories Clearance
temu.com
Limited Time Offer - Electric Car Accessories Clearance
Ad
High inflation and high interest rates have contributed to vulnerabilitie s among consumers, making them all the more susceptible at a time when the sheer unpredictabili ty of the Trump administration’s policies — including massive tariffs that are projected to result in higher prices — are chilling spending and investment plans.

President Donald Trump is set to deliver the latest news on his aggressive trade strategy on Wednesday at 4 p.m. ET in his first Rose Garden event at the White House. While the exact details remain unclear, the president has said he is seeking to rebalance trade agreements between the US and its global partners.

“The consumer sees darkening clouds for the economy ahead,” Chris Rupkey, chief economist at FwdBonds, wrote last Friday after two closely watched economic reports painted a pained picture of the American consumer.

The Commerce Department reported that inflation-adjusted consumer spending rose just 0.1% in February as Americans shored up their savings accounts, while a separate survey showed that consumer sentiment plunged 12% in March.