Retail Sales Plunge: The Impact of Trump's Tariffs
Retail sales saw a significant 0.9% decline in May following increased consumer spending in March, prompted by impending tariffs under President Trump's administration. The drop, influenced by lowered auto sales and shifting consumer confidence, comes despite steady inflation and low unemployment rates, painting a mixed picture for future economic spending.
Devdiscourse News Desk | Washington DC | Updated: 17-06-2025 18:37 IST | Created: 17-06-2025 18:37 IST
- Country:
- United States
Retail sales experienced a substantial downturn in May, with a 0.9% drop following an initial surge in March as consumers anticipated President Donald Trump's extensive tariffs on imports.
The Commerce Department reported a decline, largely attributed to a significant decrease in auto sales. This follows Americans' efforts to purchase vehicles ahead of the 25% import duty. When excluding car sales, overall sales still fell by 0.3%.
Despite this drop amidst dwindling consumer confidence, steady inflation and low unemployment remain, suggesting potential for consistent spending as the economy remains robust. Meanwhile, notable gains were observed online and in clothing and furniture sectors.
(With inputs from agencies.)
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