Prices for the “Liberation Day”: Trump’s predicted “pain” has already struck an economy

Companies have warned of pricing. The markets plunged. Bad vibrations are back. President Donald Trump’s pricing plans may not yet be in force – but the Americans feel the pressure.

Before the so-called “Liberation Day” of Trump, on April 2, when he plans to unveil a range of general prices on the main business partners, the consumer survey of the University of Michigan revealed that the economic feeling of the Americans was diving; Reading consumers fell 11.9% compared to February and 28.2% compared to a year ago.

The fears of inflation have largely led to the slowdown, and consumers are concerned about “the potential of pain in the midst of developments during economic policy,” said the survey. One of these developments is Trump’s pricing plans; Trump argued that his commercial policies will lead to income and restore jobs But recognized in February that the Americans will feel “a certain pain” accordingly.

This pain has already started to take shape. The president of the federal reserve, Jerome Powell, said at a March press conference that the poor feeling of consumers among the Americans, in particular concerning the high prices of the grocery store, “probably has to do with the disorders at the start of an administration which brings great changes in politics”.

Powell also said that “a good part” of the latest inflation projections of the federal committee on the open market, which showed higher inflation than its December forecasts, Trump prices come.

“I think that with the arrival of pricing inflation, new progress can be delayed,” said Powell.

Experts in commercial policy have said that some companies could absorb part of the cost of Trump’s planned tariffs, but Americans are likely to see higher prices on products impacted such as grocery store and cars. Although Trump also said that his plans would promote production in the United States, uncertainty leaves markets, businesses and American.

Alex Jacquez, who advised former President Joe Biden to the Blanche House National Economic Council, told journalists during a press call on Tuesday that uncertainty with Trump’s trade policy makes “difficult for the American people to see that they will have a long -term strategy for how they should spend their money and invest”.

“When the president does not have a clear strategy or direction, it is extremely difficult for companies in particular and consumers to plan the future, and that is why you see so much uncertainty in the consumer market at the moment and so much uncertainty in the business world,” said Jacquez.

Kush Desai, a White House spokesman, told Business Insider that “the fear of the media and the Democrats about President Trump’s economic agenda in the first America will not change the fact that industry leaders have already made billions of investment commitments to be made in America”.

“President Trump used prices to provide historic employment, salary and economic growth without inflation to his first mandate, and he is ready to restore American grandeur in his second mandate,” said Desai.

Trump-Vaineur Joseph Dennis, 73, previously told BI that he was concerned about administration decisions on prices and federal job cuts and wishes that they were less extreme. He is one of the many retirees who look at their investments fluctuating in value under Trump.

“I hope he knows what he is doing, but I’m not so sure,” said Dennis.

The reaction of the economy to Trump

Stock markets around the world have dropped in anticipation of Trump’s release day; The NASDAQ-100 decreased by 2.4% on Monday morning, the S&P 500 decreased by 1.5% and the industrial average of Dow Jones fell by 350 points.

It is not only the day of the liberation; The uncertainty with Trump’s plans has maintained the fluctuated markets for weeks. In addition, some companies have prepared to increase prices in anticipation of Trump’s pricing plans. Target CEO Brian Cornell told CNBC in early March that Trump’s price could lead the company to increase product prices.

Trump warned against a range of prices to come on April 2, including prices on goods from Canada and Mexico, car rates and reciprocal prices on all countries that have imposed prices on American products. However, the president told journalists on March 23 that he “could take a break from many countries”.

“I don’t change. But the word flexibility is an important word,” said Trump.

This “flexibility” makes it difficult for businesses and consumers to prepare for the future, the journalist told the economist who was an economist who served the council of economic advisers to former president Joe Biden.

“Companies and consumers are shaken by this approach. They consider it chaotic. They do not see what the plan is, but there is a concept of plan, and that expectations fall and fall quickly,” said Boushey.

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