Tariff Tango: The Impact on U.S. Retail Sales and Economic Outlook

U.S. retail sales experienced a slowdown in April as the initial surge from consumers rushing to buy motor vehicles ahead of tariffs lost steam, leading to reduced expenditure elsewhere. Consumers remain cautious amid economic uncertainty, influenced by President Donald Trump's fluctuating tariff policies.

This apprehension was highlighted by retail giant Walmart, which, like many other companies ranging from airlines to automakers, has pulled back on offering financial guidance. April's climb in retail sales was a mere 0.1% increase, following a robust 1.7% surge in March, the Commerce Department reported.

Economists point out that while a recession is not imminent due to recent tariff reductions, the likelihood of slow economic growth persists. The Producer Price Index saw a significant decline, further indicating softening demand and posing a challenge for economic recovery post the first quarter's contraction.

(With inputs from agencies.)