US stock markets fell sharply Friday after an economic report showed American consumers are growing increasingly fearful of price increases and how President Donald Trump’s tariffs could reignite the inflation crisis.

Taken together, the combination of increased concern about the effects of Trump’s economic proposals and heightened inflation are a warning sign for the new administration as it tries to deliver on its promise of broad tariffs on imported goods, tax cuts and mass deportations of immigrants.

Consumer sentiment plunged more than expected in February while households' inflation expectations amid uncertainty over the impact of President Trump's economic plans.

U.S. consumer sentiment dropped more than expected in February to a 15-month low and inflation expectations rocketed as households worried that President Donald Trump’s plans for steep and broad-based tariffs would eat into their purchasing power.

WASHINGTON >> U.S. business activity nearly stalled in February amid mounting fears over tariffs on imports and deep cuts in federal government spending, erasing all the gains notched in the aftermath of President Donald Trump’s election victory.

The University of Michigan Surveys of Consumers on Friday said its Consumer Sentiment Index dropped to 64.7 from January's revised final reading of 71.7. Meanwhile households saw inflation over the next year surging to 4.