University of Michigan consumer survey Friday found consumer sentiment fell about 5% on fears inflation will rise to 4.3% under Trump administration tariffs with major U.S. trading partners.

Consumer sentiment continued to fall in February as worries over inflation and the possibility of higher prices to come from President Donald Trump ’s tariffs policy appeared to drive the University of Michigan’s monthly sentiment index down.

Respondents expect the inflation rate a year from now to be 4.3%, a 1-point jump from January and the highest level since November 2023.