Consumer sentiment declined to six-month low in April in signs of "deepening unease" in the wake of US tariffs, according to a survey by Westpac and Melbourne Institute published Tuesday.

The Westpac-Melbourne Institute Consumer Sentiment Index fell 6% to 90.1 in April from 95.9 in March.

Those surveyed before the tariff announcement reported an index read of 93.9, only a slight decline from March. Those surveyed after the announcement reported an index read of 86.6, down nearly 10%, according to the report.

"With the situation still deteriorating, there is a clear risk of more significant sentiment declines in the months ahead," said Matthew Hassan, head of Australian macro-forecasting at Westpac.

All component indexes weakened in April, with the "family finances vs a year ago" indicator down to its lowest level since July 2024.

Westpac expects the Reserve Bank of Australia to cut the key rate by 25 basis points in May.