President Donald Trump painted a rosy picture of the economy on Tuesday, declaring, "We're on the right track." However, the latest consumer confidence report shows that Americans disagree.

According to Tuesday's report, consumer confidence fell to its lowest level since January 2021. The proportion of Americans anticipating a recession also remained at a 9-month high.

Exacerbating the situation, the White House has announced a cascade of tariffs, including a 25% tariff on foreign-made cars and car parts. Trump said the move is "about making America great again, making it strong and prosperous again," and that consumers will "see prices go down."

But experts disagree, with Mark Zandi, chief economist of Moody's Analytics telling CNN, "By this time next year, the typical car price will be somewhere between $5,000 and $10,000 more."

RELATED STORY | Consumer confidence is sliding as Americans' view of their financial futures slumps to a 12-year low

The White House is also barreling toward what they are calling "Liberation Day" on April 2, when reciprocal tariffs will kick in. However, the administration has provided little detail on the incoming wave of tariffs, and Trump has hedged on their impact, saying they will be "conservative" and that people will be "very, very surprised."

President Trump has said the new auto tariffs will kick in on April 2, but cars and car parts that comply with the U.S.-Mexico-Canada trade agreement will get a temporary exemption.

This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.