The Globe and Mail reports in its Saturday, April 12, edition that 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 that have roiled financial markets and raised the risk of a recession. A Reuters dispatch to The Globe reports that the University of Michigan Surveys of Consumers said on Friday that the slump in sentiment to the lowest level in nearly three years was "pervasive and unanimous" across age, income, education, geographic region and political party affiliation. The rise in inflation expectations poses a challenge for Federal Reserve officials, who assert that these expectations remain stable. Last week, President Donald Trump raised tariffs on Chinese goods to 125 per cent while delaying tariffs on other partners for 90 days. In retaliation, Beijing announced a similar 125-per-cent tariff on U.S. goods. Meanwhile, Mr. Trump has maintained a blanket tariff of 10 per cent on nearly all U.S. imports, along with a 25-per-cent tariff on motor vehicles, steel and aluminum. As a result, businesses and consumers are preparing for a potential surge in inflation.