President Donald Trump’s on-again off-again tariffs on key US trading partners have upended global markets and spooked investors.

“The outlook in several districts worsened considerably as economic uncertainty, particularly surrounding tariffs, rose,” said the Fed’s Beige Book survey of economic conditions.

It added that “uncertainty around international trade policy was pervasive across reports” from the Fed’s 12 districts.

Since returning to the presidency this year, Trump has imposed broad additional 10% tariffs on most US trading partners. Goods from China in particular face a staggeringly high added rate of 145%.

China has struck back with 125% levies on imports from the US, in what US treasury secretary Scott Bessent has described as a trade embargo on both sides.

Information for the Fed’s report was collected on or before April 14, after many of Trump’s sweeping tariffs had been imposed and began rippling through the country.

Besides levies targeting different countries, Trump has also imposed sector-specific duties on imports of steel, aluminum and automobiles.

Most districts saw “moderate to robust” vehicle sales in recent weeks as buyers rushed to make purchases ahead of tariff-related price increases, the Fed said.

But it noted: “Cuts to federal grants and subsidies along with declines in philanthropic donations caused gaps in services provided by many community organisations.”

Leisure and business travel were down too, and several districts noted declines in international visitors, the Beige Book said.

While there was mixed performance in the manufacturing sector, two-thirds of districts said activity was little changed or had declined, the report added.