U.S. consumer sentiment deteriorated sharply in April and 12-month inflation expectations surged to the highest level since 1981 amid unease over escalating trade tensions.

US consumer sentiment tumbled to the second-weakest reading on record while short- and long-term inflation expectations soared to multi-decade highs on growing tariff concerns.

Consumer prices fell in March for the first time since the outbreak of the coronavirus pandemic in 2020, but economists warn inflation could get worse if the U.S. retains higher tariffs on China and the rest of the world.