Australia’s April consumer confidence slammed by tariff turmoil

[SYDNEY] A measure of Australian consumer sentiment dived from a three-year high in April as market turmoil triggered by US President Donald Trump’s tariff plans hit the outlook for the economy and family finances, a survey showed on Tuesday.

The Westpac-Melbourne Institute index of consumer sentiment slid 6.0 per cent in April from March, more than erasing the previous month’s 4 per cent gain. The index was still 9.3 per cent higher on a year earlier at 90.1, but pessimists continued to outnumber optimists.

Matthew Hassan, Westpac’s head of Australian macro-forecasting, noted sentiment among consumers surveyed before Trump’s announcement had eased just a touch, but the reading afterwards dropped 10 per cent to 86.6.

“The scale and breadth of tariff increases, which included a 10 per cent tariff on Australian goods, came as a major surprise, triggering a sell-off in global financial markets,” he said.

“With the situation still deteriorating, there is a clear risk of more significant sentiment declines in the months ahead.” REUTERS