U.S. consumer sentiment plunged to a nearly 2-1/2-year low in March and inflation expectations soared amid worries that President Donald Trump's sweeping tariffs, which have ignited a trade war, would boost prices and undercut the economy.

Consumers expect prices to rise at an annual rate of 3.9% over the next five to 10 years, the highest in more than three decades.

Policy uncertainty and tariff whiplash are making consumers less confident about the economy and more worried about inflation, a new survey shows.