June 18th, 2025
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The Commerce Department's latest data reveals a precipitous 0.9% contraction in US retail sales for May, compounding April's more modest 0.1% dip, a downturn widely ascribed to a pronounced slump in automotive sales following a March spike fuelled by consumer anxieties surrounding the prospective imposition of President Trump's 25% tariff on imported vehicles and components; notwithstanding a palpable erosion of consumer confidence, however, consistently subdued inflationary pressures and persistent low unemployment figures may yet sustain a modicum of consumer expenditure in the near term, as evidenced by a 0.4% uptick in sales ex-gasoline, automobiles, and dining establishments, hinting at continued, albeit selective, discretionary purchasing, with e-commerce platforms, apparel outlets, and furniture retailers bucking the broader trend and registering notable gains amidst widespread sectoral declines, thereby underscoring the burgeoning apprehension that Trump's protectionist trade policies, specifically tariff implementation, are instigating inflationary headwinds.
June 18th, 2025
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