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.

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. High inflation and high interest rates have contributed to vulnerabilities among consumers, making them all the more susceptible at a time when the sheer unpredictability of the Trump administration’s policies — including massive tariffs that are projected to result in higher prices — are chilling spending and investment plans. “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.